13 Nov 2025

Bill to expand Road User Charges introduced

5:19 pm on 13 November 2025
An example of a current road user charges permit.

The shift from a system of matching odometer readings to paper labels on the windscreen, towards using subscriptions through private companies. Photo: RNZ

A bill to make road tolling easier and shift Road User Charges (RUCs) towards a digital system has been introduced to Parliament.

In a statement, Transport Minister Chris Bishop said the Land Transport (Revenue) Amendment Bill's changes to road tolling would enable drivers to be charged for driving on new, better roads where there was an alternative.

"Tolling helps us bring forward investment and build the roads New Zealand needs sooner," he said.

"Corridor tolling... allows tolling on parts of an existing road where users receive clear, demonstrable benefits from a new project in the same corridor.

"The bill also introduces new tools to manage diversion from toll roads, including the ability to restrict heavy vehicles from using unsuitable alternative routes."

Councils would be able to use the money to help maintain the alternative routes, and costs would be tagged to inflation.

The changes to RUCs shift from a system of matching odometer readings to paper labels on the windscreen, towards using subscriptions through private companies.

Bishop said the digital devices used to track distance travelled would future-proof the system "and separates New Zealand Transport Agency's regulatory role from its retail role so third-party providers compete on a level playing field".

"These changes are the first step towards replacing petrol tax with RUC for light petrol vehicles. We'll assess the improved system in 2027 before deciding on next steps for transitioning the remaining 3.5 million vehicles."

Chris Bishop.

Chris Bishop. Photo: RNZ / Nick Monro

The minister's statement also confirmed a procurement process via the government tendering service GETS would be undertaken later this month "to test options with potential market providers on the design of new third-party RUC payment services".

The government last March expanded the distance-based RUC charging system from applying to diesel and heavy vehicles, to also include light electric vehicles.

EVs had been exempt from the scheme since 2009, but multiple governments had proposed bringing in the charges for EVs once they accounted for 2 percent of vehicles on the roads.

EV owners pay the same $76 per 1000km rate as diesel vehicle owners, while plug-in hybrid owners pay $38. The money raised goes towards the National Land Transport Fund.

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