The New Zealand Government has opened public consultation on proposed regulations designed to modernise the country’s road user charges system, with reforms aimed at shifting all vehicles toward distance-based charging regardless of fuel type.
The consultation follows recommendations from the Transport and Infrastructure Select Committee on the Land Transport (Revenue) Amendment Bill and will remain open until 12 June 2026.
Transport Minister Chris Bishop said the reforms are intended to support a long-term transition away from fuel excise as the primary method of funding roads.
“The Government is shifting to a model where all vehicle users pay based on actual road use and vehicle weight, regardless of fuel type,” Mr Bishop said.
Shifting from the petrol tax model
The proposed changes would eventually transition New Zealand’s 3.5 million light vehicles to an electronic road user charges system.
According to the Government, the current petrol tax model is becoming less effective as vehicles become more fuel efficient and as hybrid and electric vehicle adoption grows.
Mr Bishop said the existing system no longer reflects actual road use fairly across different vehicle types.
“Petrol tax has long been a rough proxy for road use, but that link is breaking down as more fuel-efficient vehicles pay less despite using the roads,” he said.
Electronic charging and telematics
One of the key proposals under consultation involves new rules for electronic distance recording technology.
The Ministry of Transport is proposing separate approaches for heavy and light vehicles, with a more flexible framework for light vehicles designed to accommodate newer telematics technologies.
The proposal could allow built-in vehicle telematics systems to operate as approved electronic distance recorders, provided they meet accuracy and security requirements.
New rules for RUC providers
The consultation also outlines proposed approval and operating requirements for road user charge providers.
Under the proposed framework, providers would need to demonstrate financial stability, operational capability and secure technology systems capable of collecting and remitting charges accurately.
Ongoing performance obligations would include maintaining accurate records, responding to requests from the RUC Collector and supporting audit and compliance processes.
Privacy and payment flexibility
Privacy protections form part of the proposed regulations, with providers required to comply with the Privacy Act 2020 and implement safeguards against unauthorised access to personal information.
The reforms would also create the ability for alternative payment models including subscription-style and post-paid charging systems.
“We expect the market to offer new payment options, such as subscriptions or post-payment, with simple set-and-forget billing similar to how many people already pay for power or streaming services,” Mr Bishop said.
The proposed system would also separate NZTA’s role as road user charge collector from its role as a provider, resulting in changes to fee structures and regulatory oversight arrangements.
Government seeking industry input
The Government is inviting feedback from the technology, finance, telecommunications, transport and retail sectors as part of the consultation process.
“We want to hear from innovative people and companies here and overseas to help build a road user charges system that is affordable and easy to use,” Mr Bishop said.
Submissions can be made online, by email or by post through the Ministry of Transport consultation process.
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