Submissions open on regulations to modernise RUC system

The Government is seeking public consultation on proposed regulations to modernise New Zealand’s road user charges system, with submissions open until 12 June 2026.

Transport Minister Chris Bishop says the tech, finance, telecommunications and retail sectors are being invited to help shape the proposed regulations for a modernised system that will eventually see all vehicles pay based on actual road use rather than fuel type.

“The Land Transport (Revenue) Amendment Bill includes important legislative changes to enable the transition of New Zealand’s 3.5 million light vehicles to paying for our roading network through electronic road user charges, rather than petrol tax,” Bishop says.

The consultation follows the Transport and Infrastructure Select Committee’s report on the Land Transport (Revenue) Amendment Bill, which recommended changes to strengthen the system for service providers and road users.

Bishop says 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. With hybrids growing rapidly, the current system is becoming unfair.

“The Government is shifting to a model where all vehicle users pay based on actual road use and vehicle weight, regardless of fuel type,” he says.

Electronic distance recorders

The proposed regulations cover five key areas, starting with electronic distance recorders. The Ministry of Transport proposes differentiating requirements between heavy and light vehicles, adopting a more flexible outcomes-focused approach for light vehicles to support emerging technologies.

This could enable built-in vehicle telematics to serve as electronic distance recorders if they meet accuracy and integrity standards set by the RUC Collector.

RUC provider approval

Regulations would establish criteria for approving RUC providers, including requirements for financial standing, operational capacity, and technical capability. Applicants would need to demonstrate they can collect and remit road user charges while maintaining secure systems that connect with the RUC Collector.

Performance standards

The proposed regulations would set ongoing performance standards for approved RUC providers, including obligations to collect correct revenue amounts, maintain accurate records, and respond to lawful requests from the RUC Collector within specified timeframes.

Providers would also be required to maintain complaint registers and facilitate monitoring and audits conducted by the RUC Collector.

Privacy protection

RUC providers would be required to comply with the Privacy Act 2020 and demonstrate they have policies and systems to protect personal information. This includes implementing security protocols to protect information from unauthorised access and reporting security breaches to the RUC Collector.

Alternative payment schemes

The regulations would enable the RUC Collector to approve alternative payment models, including post-paid systems. These schemes could enable automated purchasing and account-based purchasing models, moving away from the current requirement to pre-pay for blocks of distance.

“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,” Bishop says.

The reforms would also separate NZTA’s roles as RUC Collector and RUC provider, leading to changes in fee structures. The current RUC administration fee would be reduced to reflect NZTA’s reduced role, while new fees would be introduced to recover costs of regulatory approval and monitoring functions.

Bishop says data privacy is important to New Zealanders, and any technology solutions will be required to comply with the Privacy Act and the Road User Charges Act, which contains strong privacy safeguards.

“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,” he says.

Submissions can be made online, by email to ruc@transport.govt.nz, or by post to the Ministry of Transport. The consultation document includes specific questions to guide submissions, but feedback is welcome on any aspect of the regulation proposals.