An independent review of the New Zealand road user charging system: an examination of land transport cost allocations, options for improving the current road user charging system and the merits of alternative methods of collecting revenue from diesel vehicles

The Review Group found that New Zealand has a relatively unique approach to allocating and charging diesel vehicles for roading costs. Distinguishing features of the New Zealand approach include charges based on operator nominated weights and having measured distance-based charges, as opposed to maximum laden weights and fuel excise duty (FED) and/or other charges that serve as a proxy for distance. There are positive aspects to the New Zealand approach. In particular, vehicles are charged according to their overall use of the roading network and the associated costs they impose. While compliance costs are quite high, they fall predominantly on road users rather than other sectors of the economy. The developed world is now clearly moving towards technology-facilitated, direct road charging based on weight, distance travelled and the time and location of travel. New Zealand‘s history of weight and distance-based charging means that it is well placed to adopt this developing international approach. Transitioning in full to the inevitable technological solutions most suitable for New Zealand will take some time. Perhaps less than 5 years for heavy vehicles and, depending on incentives or requirements to install appropriate technology in vehicles, somewhat longer for most of the light vehicle fleet. The transition will necessarily involve monitoring of international developments and careful planning and trialling under New Zealand operating conditions.


  • English

Media Info

  • Pagination: 135p

Subject/Index Terms

Filing Info

  • Accession Number: 01384155
  • Record Type: Publication
  • Source Agency: ARRB
  • Files: ATRI
  • Created Date: Aug 22 2012 4:15PM