Road User Charges Overhaul

 

Cabinet has approved changes to road user charges - the most significant changes since it was introduced in 1978.

Transport Minister Steven Joyce says the changes simplify and modernise the system and changing the definition of licence weights, removing the confusing time licence system and simplifying the list of exempted vehicles would reduce compliance costs.
The reforms comprise:

  • Changing the current system whereby heavy vehicle operators nominate a licence weight for RUC purposes to one where each vehicle will have its own permanent RUC weight
  • Removal of the time licence system and modernisation of the list of vehicles exempted from road user charges
  • Improvements to the system overall to enable greater compliance
  • An improved regulatory framework for electronic management systems
  • A fairer, simpler and less costly structure in relation to offences and penalties, particularly for light vehicles

Evasion of charges is estimated to amount to $30m a year or more. The minister said legislation covering the changes will help stop this.

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2 Comments

 
  1. ingolfson says:

    Why am I immediately looking for the benefits that this has for the trucking industry? Oh, right. Experience.

  2. ingolfson says:

    That said, how do people feel this will work - I guess one would need to drill down into the details more to see what results it would have, where it would actually help (I’m not cycnical enough to assume that a 1978 system wouldn’t have lots of valid improvement needs).

 

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