Skip to content

NZ Pushes New Electronic Road User Charges

RFI launched for future road user charges system

Three men standing on stage at the IPWEA Queensland Northern Territory 2023 Excellence Awards, with the center individual holding a trophy.
As the infrastructure sector celebrates excellence at events like the IPWEA Awards (pictured), the New Zealand government is modernizing transport funding by launching an RFI for electronic Road User Charges (RUC).

The Government is making progress on transitioning
New Zealand’s 3.6 million light petrol vehicles to road user charges (RUC),
today launching a Request for Information (RFI) on paying for RUC electronically, Transport Minister Chris Bishop says.

“We want to hear from innovators and private companies on how we can make paying for road use as easy as paying your power bill or streaming service”, Mr Bishop says.

“Our transport funding system must keep pace with the way Kiwis pay their bills today. The current RUC framework is out of date and still relies on manual paperwork and paper licences.

“Modernising RUC will allow for more technology options, including systems already built into modern vehicles. Road users will be able to opt in to using this technology to make it easier for them to pay RUC, but they will also have the option of manual alternatives.

“We know data privacy is important to New Zealanders. Any technology solutions will be required to comply with the
Road User Charges Act which contains strong privacy safeguards and strictly limits what information can be accessed.

“The Land Transport (Revenue) Amendment Bill which is currently before
Parliament, will pave the way for new technology and open up the RUC market to wider competition.

“We’d like to see a mix of businesses get involved and be part of this opportunity. This could include:

Potential business involvement

tech-focused companies offering software, telematic and electronic systems to manage RUC on behalf of road users. Companies that could combine payment for RUC with other services, such as banks, vehicle insurers, and utilities. Companies that could sell RUC to people over-the-counter, such as fuel companies, and supermarkets.

“New services could include very simple solutions that enable people to keep track of their odometer readings and receive purchase reminders, through to full electronic solutions enabling automated purchase.

“This work is part of a broader reform programme to future-proof transport funding. As our vehicle fleet changes, so too must the way we fund our roads.

“Responses to the RFI will inform Government decisions on next steps for the transition to a modern, user-friendly, and competitive RUC system.