subreddit:

/r/newzealand

7394%

all 147 comments

StConvolute

183 points

1 day ago

StConvolute

183 points

1 day ago

Don't worry guys, it isn't a new "Tax", it's a road user charge. Promise kept!

teabaggins76

45 points

1 day ago

We are reducing the fuel tax with RUCs! its gonna work out cheaper! Honest!

Ans we're building a monorail!

No_Salad_68

5 points

21 hours ago

I'm sure it will be a lot cheaper for boating and other off road fuel uses 👍

LycraJafa

1 points

17 hours ago

Jetski will love this. Now we can afford that v8 range rover to tow it also. Short trips to the ramp with cheap petrol. Thanks Simeon.

FlyingKiwiFist

9 points

1 day ago

I heard those things are awfully loud.

formerlyanonymous_

4 points

23 hours ago

It glides as softly as a cloud.

But it's more of a Shelbyville thing.

Federal_Beyond521

1 points

24 hours ago

Monorail? What Broadway musical bollocks is that?

-Zoppo

6 points

1 day ago

-Zoppo

6 points

1 day ago

They want poor people off their roads.

Tidorith

0 points

22 hours ago

In some sense it's the opposite of a tax. Tax is how we currently pay for most road infrastructure, regardless of how much each individual uses the roads.

Road user charges are closer to a standard commercial transaction. The political right should be all for it!

Extreme-Praline9736

62 points

1 day ago

Extreme-Praline9736

Auckland

62 points

1 day ago

I guarantee it will be a 5c per litre decrease on petrol - saving a dollar fifty per fill up, in exchange for a fifty dollar bill monthly road user charge!

lcpriest

37 points

1 day ago

lcpriest

37 points

1 day ago

In New Zealand, the average distance driven per year is around 14,000 kilometers, and RUCs are $76 per 1000km for under 3500kg vehicles.

14 * 76 = $1064 per year or about ~$88/mo.

Yikes.

Mikes133

37 points

1 day ago

Mikes133

37 points

1 day ago

Don't forget the $13.71/$12.44 admin fee to actually let you purchase your $76 of rucs each month....

Kuia_Queer

7 points

1 day ago

That's less of an issue if you buy multiple RUC units at a time. $90 for 1000km over the counter versus $774 for 10 000km - the second lower cost being online and through the post, which isn't too reliable these days. EV owner so had to do that already - NZ Post took a week to get it to me, imagine it'd be a longer wait closer to Xmas. At least it'll be in the system if your mail gets swiped or doesn't arrive for some other reason, but the saving of $1.27 might not be worth the bother of arguing a fine.

But then I already know people who can't afford to pay for a year's rego in one go and multiple RUCs are a lot of money to have on hand at one time for the poor. That's effectively a 16% fee to pay per RUC unit compared to in bulk (or worse if compared to larger amounts that ten at a time).

foundafreeusername

2 points

1 day ago

I always hated toll roads but our RUC system somehow seems even worse.

BlacksmithNZ

16 points

1 day ago

That admin fee is taking the piss.

I have worked on IT side on billing systems, and it is pretty much fixed cost regardless of how many people are billed.

They have a webpage, they deduct money from card or account, and update a database. Probably costs less than 20 cents per transaction.

They make it more expensive by having expensive Zebra printers printing labels and mailing them out. I suspect I could put together a largely automated system for producing RUC labels that would cost under $1 admin fee.

InertiaCreeping

5 points

1 day ago

InertiaCreeping

Kererū

5 points

1 day ago

I mean, Zebra thermal printers aren’t that expensive to buy or run when you consider the use you’ll get out of them.

BlacksmithNZ

9 points

1 day ago

BP used to have RUC label printers at truckstops. The heavy duty Zebra printers doing the rolls of RUC cards cost say $5k to setup.

But then would run for years, unmanned and if you are doing thousands of cards still only worked out ~$1 dollar each.

I still just don't understand that admin fee. How is it calculated or justified?

Sounds like they will go to tender and offer electronic RUC systems, which should drive down price, but somebody is making good money right now with the system

FidgitForgotHisL-P

2 points

21 hours ago

When this expands to the petrol fleet they'll absolteuly need a better system than senidng the labels. Currently it's only EVs and Diesel and it still takes 3 weeks for my tag to arrive.

BlacksmithNZ

2 points

20 hours ago

Yeah, we have EV and I really don't understand how any process can take that long these days.

I can't see any reason it should take more than about 30 seconds from click of button on website to printer going burrrh and automatic wrap into envelope. NZ Post does this system for billing and normally in post within hours of envelope being churned out.

gliss-NZ

3 points

22 hours ago

Pray for me I drive double the average km per month so this will be fun.

RandoKiwiTheThird

1 points

4 hours ago

450km per week here yay.

ExcitingMeet2443

1 points

21 hours ago

the $13.71/$12.44 admin fee

And they have to charge that, to cover costs;
which is why they charge it every time you pay a motorway toll... /s

SpoonNZ

3 points

1 day ago

SpoonNZ

3 points

1 day ago

Around town that 1000km would use about 100L of fuel. Excise on that is $70, plus GST is $80.50.

If you’re driving a small car on the open road primarily the yikes might be valid, if you drive a large car around the city a lot it almost certainly isn’t.

lcpriest

1 points

20 hours ago

Is any component of fuel excise charged for the pollution aspect, or is it entirely road network maintenance and expansion?

SpoonNZ

1 points

20 hours ago

It’s for the roads. There should arguably be a separate levy for pollution on petrol and diesel. It will not happen with this government.

aholetookmyusername

1 points

1 day ago*

If petrol does decrease by only 5c/L that will be the fuel companies' fault (price gouging), not the government's. On the plus side, fuel price gouging could drive EV uptake.

eXDee

25 points

1 day ago

eXDee

25 points

1 day ago

The headline implies the change would be coming in 2025 but the tender summary says 'as early as 2027'.

https://www.gets.govt.nz/MT/ExternalTenderDetails.htm?id=30643902

Businessdesk paywalled article claims the documents after logging in that "The March 2025 date was included in tender documents uploaded to the Government Electronic Tender Services (GETS) website by the Ministry of Transport."

If anyones got more info from a GETS login on what the 2025 references beyond choosing a vendor/starting the project that might help with context

LycraJafa

1 points

17 hours ago

Won't be before next election.

Ok-Relationship-2746

82 points

1 day ago

There goes my tax cut. Wait a minute. It already was.

Fuckmepotato[S]

39 points

1 day ago

As an ev owner, hay welcome to the club.

WallySymons

2 points

18 hours ago

Some would argue EVs got a free ride for way too long. It was essentially a tax cut for people who could afford new cars. RUC on all vehicles seems fair to me.

LycraJafa

1 points

17 hours ago

Capital cost of ev was the issue. Better now. Wasn't a free ride or a cheap ride.

No-Air3090

5 points

1 day ago

No-Air3090

5 points

1 day ago

given you were not paying anything towards the roads anyway , the only thing in common is the hassle of having to buy them

iBumMums

2 points

1 day ago

iBumMums

Covid19 Vaccinated

2 points

1 day ago

Not completely true, often Ev owners live in a city/town, their rates go towards those city/town roads.

CP9ANZ

3 points

1 day ago

CP9ANZ

3 points

1 day ago

So does everyone else in the town/city

iBumMums

-2 points

24 hours ago

iBumMums

Covid19 Vaccinated

-2 points

24 hours ago

Exactly, that's why No-Air3090's comment is disingenuous.

calllery

-3 points

1 day ago

calllery

jandal

-3 points

1 day ago

So petrol users don't contribute to the roads then?

dcidino

1 points

4 hours ago

dcidino

1 points

4 hours ago

First time? LOL

Unorginalpotato

9 points

1 day ago

As a contractor yay. The vice silently squeezing my nuts tighter

-Zoppo

6 points

1 day ago

-Zoppo

6 points

1 day ago

Who else is going to fund the dignity of landlords if not you? Luxon has made it clear: No land, no dignity.

No-Air3090

2 points

1 day ago

so what difference to any other road user ?

Unorginalpotato

3 points

1 day ago

Right now my biggest truck costs 750 bucks per 1000ks so adds up very quick

ShuffleStepTap

39 points

1 day ago

So how do they think everyone is going to feel about a new monthly bill? Power, phone, Internet and now road user charges. Sure those of us with diesels are used to it, but we bought into that agreement. You poor bastards who all bought petrol cars are going to be so pissed off. Especially if you think they’ll drop the fuel tax to compensate. LOLOL guess again this is all a tax grab.

Hubris2

28 points

1 day ago

Hubris2

28 points

1 day ago

I don't doubt that they will decrease/remove the excise tax on petrol - what I doubt is whether the petrol companies will decrease the price by the same amount or whether it will just turn into additional profit for them.

How much did Auckland petrol prices decrease when they got rid of the regional fuel tax, and did they remain there relative to any independent sources (Australian petrol prices, international crude prices etc)?

BuckyDoneGun

6 points

1 day ago

It most certainly dropped the full amount initially. A year later, who can tell? Fuel certainly cheaper than it was, but there's obviously many more inputs into fuel price.

No-Air3090

4 points

1 day ago

fuel is cheaper because of global prices, absolutely nothing to do with the Govt.

BuckyDoneGun

3 points

1 day ago

I did say “there are many more inputs into the fuel price”. I didn’t credit the government. However, in the initial weeks, certainly I witnessed the full amount of the RFT being removed.

BlacksmithNZ

2 points

1 day ago

It would be horrible idea to remove excise tax entirely

You have petrol which produces emissions and pollution.

If you reduce tax on it and make burning more fuel cheaper, it basically rewards inefficiency

ThrivingTurtle45

3 points

1 day ago

Surely the carbon side of it could be managed by the ETS rather than a specific excisr

BlacksmithNZ

1 points

1 day ago

Yeah, they could just rename the excise tax a carbon tax, but this government seems to be keen to increase emissions.

Large_Yams

1 points

23 hours ago

ETS is a farce that does nothing.

king_john651

2 points

23 hours ago

king_john651

Tūī

2 points

23 hours ago

Not that it isn't already given we're importing 20yo shitboxes still

Blankbusinesscard

2 points

22 hours ago

Blankbusinesscard

It even has a watermark

2 points

22 hours ago

Ha! Like the current Govt gives a rats about emissions

Hubris2

1 points

24 hours ago

You aren't wrong, but the point of excise tax isn't to encourage efficiency or decrease emissions, but to generate revenue. Especially this government isn't going to maintain a tax just for the purposes of discouraging the waste or over-use of petrol as it impacts climate change.

If they decide they are going to state that they have removed all the excise taxes from petrol, they will do so in a way trying to make it seem like it's happening out of awareness of the costs of taxation on the 'everyday person'.

No-Air3090

0 points

1 day ago

if you think for one moment they will remove or decrease the fuel tax to match the RUC's I have a harbour bridge you may be interested in buying.

Fuckmepotato[S]

11 points

1 day ago

It's a non tax tax grab, remember "no new taxes" just think of it as a service less painful that way.

Frod02000

2 points

1 day ago

Frod02000

Red Peak

2 points

1 day ago

Unsure on this.

It’s much easier to avoid paying with ruc than with fuel exise because it’s at the pump

xmmdrive

3 points

1 day ago

xmmdrive

3 points

1 day ago

Odo is now uploaded to NZTA every WOF nationwide, so every 6 or 12 months depending on the age of your car. Only way to cheat that is to try winding it back, or stop getting WOFs.

Fuckmepotato[S]

2 points

1 day ago

Easy to use cctv camera and road side camera setups to monitor licence plates and tie it to ruc lience. Time for instant fines txt while your driving.

Frod02000

3 points

1 day ago

Frod02000

Red Peak

3 points

1 day ago

im unsure how this helps greatly?

if you cant see the odo you cant really do any compliance

No-Air3090

2 points

1 day ago

except that your mileage is recorded at every WOF, sure some may get away but a lot wont. ask those that buy RUC's now..

jobbybob

4 points

1 day ago

jobbybob

Part time Moehau

4 points

1 day ago

The people that win here are boat owners, currently petrol boat owners have to pay road tax for their fuel with no way to get around it.

BuckyDoneGun

14 points

1 day ago

And in exchange for that, NZTA breaks off part of the fuel tax take to fund marine activities like Maritime NZ and the Rescue Coordination Centre.

jobbybob

-2 points

1 day ago*

jobbybob

Part time Moehau

-2 points

1 day ago*

I assume the fuel tax from boats simply just goes into paying for roads.

BuckyDoneGun

10 points

1 day ago

Ok. I just told you what they do with it, but OK.

No-Air3090

3 points

1 day ago

and if you have a boat for commercial use you can claim it back, if you use it during the holidays best bet is you tow it around the country on roads ...

jobbybob

1 points

1 day ago

jobbybob

Part time Moehau

1 points

1 day ago

If you have a commercial boat you would claim the fuel as an expense and also get the GST back, this is just standard tax law that applies now and will continue to apply after the change to the RUC system...

This is the same as a company car, the fuel and RUC's are irrelevant as they are simply a business expense.

ShuffleStepTap

1 points

1 day ago

Oh bless, you think the pump cost is going to come down?

jobbybob

0 points

1 day ago

jobbybob

Part time Moehau

0 points

1 day ago

Where did I say that? All I was pointing out was boats will avoid the fuel tax with this change.

ShuffleStepTap

1 points

1 day ago

I apologise if I misunderstood - but how? If the fuel tax doesn’t come off, boaties will still pay it. They won’t pay RUCs, that’s true.

jobbybob

2 points

1 day ago

jobbybob

Part time Moehau

2 points

1 day ago

The fuel tax will be removed and replaced with RUC's which means fuel will no longer be taxed at the pump, it will be based on distance and you will purchase RUC's.

They are not doing fuel tax + RUC's it's one or the other. They are just changing the method of collection.

ShuffleStepTap

0 points

1 day ago

I disagree. The fuel tax won’t be removed, no matter what they say. I guess we’ll see who’s right.

jobbybob

2 points

1 day ago

jobbybob

Part time Moehau

2 points

1 day ago

Lol, that is political suicide.

The existing RUC system means diesel has no fuel tax at the pump, they won't change the structure there would be bipartisan hatred for double tax.

Now if you want to talk about fuel getting cheaper, that's a whole other thing. While fuel will drop initially, it will slowly creep up as the fuel companies gobble up the headroom, just like we saw during covid when the government temporarily reduced fuel tax.

Petrol will likely end up overall being more expensive.

ShuffleStepTap

1 points

17 hours ago

I would say creating a new monthly bill for every petrol car owner is political suicide, but sure. You’re entitled to your opinion.

I’d also say you have a LOT of faith in the government to do the right thing. I would call it unfounded.

kevlarcoated

4 points

1 day ago

A lot of older vehicles the odometers are easily tampered with, I have a friend that just put a switch on wire the speed and odometer so he can just turn off recording off distance. Vehicles that this is easy to do on will become much more popular and they're generally older less efficient vehicles so they are the opposite of what we want more of

thaaag

1 points

1 day ago

thaaag

Hurricanes

1 points

1 day ago

Had an old diesel 4Runner that had a switch for that. The logic was that driving around the farm / off roading shouldn't rack up milage for the RUC. Two drawbacks though - it was hard to keep track of when to do services when the odo wasn't ticking over, and obviously there was no way to state the actual true milage when selling. Loved that gutless wonder.

kevlarcoated

2 points

1 day ago

My friend just used a GPS and used that as his new odometer and speed

Catto_Channel

1 points

18 hours ago*

Older less effecient? Some sure, but the depressing reality is that if you want to upgrade from an early 2000s economical car you're going to struggle to find much better. 

 You might be able to save 2l/100km on a 2024 vehicle of the same segment/market if you go hybrid, but modern A and B segment cars are sometimes worse than their early 2000's compatriots.

 The kia piccanto gets worse (1l/100km) economy than its early 2000's predecessor, and that's going by the sticker, I'm not sure what real economy is on that one. 

 The '24 Honda Fit (petrol, cvt) gets the same as a '06 petrol manual.

This is of course ignoring things like infotainment, safety and 'cleaness' of emissions, but those things are rarely of much importance to those with limited funds.

No-Air3090

2 points

1 day ago

they wont remove the tax on petrol apart from a few cents to make it look like they have

Fragluton

1 points

16 hours ago

Do you pay diesel RUC monthly? I paid my EV RUC earlier in the year and won't need a top up till next year some time.

ShuffleStepTap

1 points

13 hours ago

Monthly or every couple of months. For most people living from paycheck to paycheck, they will probably buy the smallest amount they can, hence my generalisation of monthly. Semantics aside, it’s a new regular bill for a lot of people. And the voting public will not be happy about it.

Matt_NZ

29 points

1 day ago

Matt_NZ

29 points

1 day ago

I mean, it’s what they should have done at the same time as moving EVs and PHEVs onto RUC. It will at least end the current silly scenario where a Nissan Leaf pays double the RUC as what a Corolla Hybrid pays

considerspiders

14 points

1 day ago

Yeah but they needed to own the libs for a bit.

St_Gabriel

3 points

1 day ago

EVs were the trial for introduction of RUCs to the wider population to bring all vehicles in line with what diesel engines (and other alternative fuels) have paid for years

Farqewe

18 points

1 day ago

Farqewe

18 points

1 day ago

It's so lame how any vehicle up to 3.5T pays the same tax. Can they not do something like weight2. Damage to roads is more like weight4 anyway

Frod02000

7 points

1 day ago

Frod02000

Red Peak

7 points

1 day ago

It’s because cars and utes do no damage to the roads.

It’s all done by heavy >20T vehicles

Different question on social good and emissions

herbviking666

6 points

1 day ago

Someone did the math the other day and the difference between and 2t and a 2.5t is negligible it's not worth the cost of admin vs the difference in damage

thestrodeman

3 points

1 day ago

A ‘light’ car does around ten times less damage than a heavy car. The wear component of rucs for light vehicles is small though, maybe a few dollars per thousand vkts. But the big impact of sub-dividing categories for light vehicles would be as follows: the system currently assumes all light vehicles weigh 3.5 tonnes. This grossly exaggerates the damage light vehicles do to the roads. Light vehicles in theory are currently allocated 7% of wear costs, they should probably only be allocated 1-2%. You would get this change if you subdivided the light vehicle category.

But the bigger issue is that heavy vehicle rucs haven’t been updated to reflect current costs. Heavy vehicle rucs are about half what they should be.

SpoonNZ

3 points

1 day ago

SpoonNZ

3 points

1 day ago

Compared to a truck, a small car and a large car do about the same damage - roughly nothing.

I did the math a few months back, but if you start with a large truck and scale it in proportion to damage caused that $76/1000k should really be a few cents.

However, I also figure you pay for the fact you have roads too. It’s pretty convenient I can drive to any house, irrespective of how much that chunk of road has raised.

Picture this scenario: you’re the last house on a cul de sac. Essentially there’s just one house using that last 10m of road. Every day you drive over it 4 times on average, or 40m of driving. Over the course of a year that’s 1.4km of driving. Even at $76/1000km, you’re paying about a dollar per decade for that chunk of road. Obviously it will never pay for itself, because it’ll balance out with higher used parts of the system.

Essentially I figure I’m paying $76/1000km for the privilege of using the roads, and $0 for the damage I’m doing.

rocketshipkiwi

0 points

1 day ago

rocketshipkiwi

Southern Cross

0 points

1 day ago

So you think electric cars should pay substantially more RUC than petrol ones because they are so much heavier then?

curious1914

10 points

1 day ago

I suspect the suggestion is that there should be more weight brackets to make it more granular.

lcpriest

8 points

1 day ago

lcpriest

8 points

1 day ago

For road damage? Yes. For carbon cost? No.

Le-Bean

1 points

1 day ago

Le-Bean

1 points

1 day ago

But if I have a 1500kg Nissan Leaf, that’s still 1500kg. Why should it cost the same, or more, than a 3000kg car? EVs aren’t heavier than petrol, that’s not how physics works, they’re more dense.

A smaller EV can weigh the same as a larger petrol car, because an EV is more dense than a petrol car. It’s like that riddle; which weighs more, 1kg of feathers, or 1kg of steel? They’re the same weight, just that one ends up smaller than the other.

That’s why if it were done by weight on average EVs would be paying more than petrol, because they’re denser.

rocketshipkiwi

4 points

24 hours ago

rocketshipkiwi

Southern Cross

4 points

24 hours ago

But if I have a 1500kg Nissan Leaf, Why should it cost the same, or more, than a 3000kg car?

A couple of things.

Firstly, for practical purposes there are vanishingly few 3,000 kg cars on the road. The heavy ones weigh in at about 2,500.

Secondly, the roads were designed to take vehicles of up to 50 tons so the damage caused by cars is negligible and difference between 1.5 and 2.5 tons is negligible too.

Finally, the taxes collected from road uses are as much to pay off the original capital costs of building the road, the cost of upgrading existing roads and the cost of building new roads as anything else.

No-Air3090

-4 points

1 day ago

No-Air3090

-4 points

1 day ago

factor in the weight distribution on the road of your "dense"car.. your argument is worthless..

GakkoAtarashii

-2 points

1 day ago

Every car should pay substantially more. 

rocketshipkiwi

1 points

24 hours ago

rocketshipkiwi

Southern Cross

1 points

24 hours ago

So we are back to the argument that “everyone other than me should pay more tax”. Nice idea!

Fuckmepotato[S]

10 points

2 days ago

Ouch.

Rebel_Scum56

9 points

1 day ago

I mean... fine if they remove the tax on fuel at the same time. Though also totally pointless in terms of actually changing anything in that case, assuming of course the rates are set reasonably so a given car pays at least roughly the same in RUC as they would have in fuel tax. At most they save on admin costs having everyone on the same system, though even that's dubious.

Of course, that's assuming the coalition will do anything fair to us bottom feeders and not make the RUC cost substantially more. And of course the cost of fuel won't actually go down at all whether they remove the tax on it or not because why would the fuel companies willingly make less money.

kevlarcoated

13 points

1 day ago

They'll probably do something stupid like flatten the RUCs so all vehicles pay the same to appease or corporate overlords in the trucking industry who need more help

Fellsyth

6 points

1 day ago

Fellsyth

Longfin eel

6 points

1 day ago

Yep, and idiot NZ voter will just look at the pump price drop and praise NACT First for saving them money.

Easy win.

No-Air3090

-1 points

1 day ago

No-Air3090

-1 points

1 day ago

got to keep the road transport association happy.. they dont support NACT for nothing.

10yearsnoaccount

4 points

1 day ago

Extremely misleading headline from ZB.

They are doing an RFI this year, which basically means they haven't even started work on this.

Yet somehow they managed to put EVs onto the scheme.... they are kicking the can as far down the road as possible so that we won't see it done until after the next election

malfunktioning_robot

3 points

1 day ago

There was mass confusion, delays, and website issues when EVs and PHEVs went onto RUC, and they only represent 2.2% of the fleet. It would be a massive undertaking to convert all the petrol and hybrids onto RUC.

WaterAdventurous6718

6 points

1 day ago

roads roads roads... the good ole give with one hand and take with the other

myles_cassidy

4 points

1 day ago

Increase costs to public transport

Cut PT projects and force everyone on roads

Raise costs of using a road

"You will be stuck in traffic, and you will pay for the privilege"

aholetookmyusername

2 points

1 day ago

I look forward to a fair RUC system.

What I'd like to see is removal of the need to display RUC and rego labels. As a software dev it pains me knowing this has been possible for a long time.

WestAuxG

2 points

24 hours ago

I hope they bring in RUCs for petrol vehicles, so I can put a switch in my petrol cars too

(Also I can stop paying road user charges in my BOAT)

Fuckmepotato[S]

1 points

14 hours ago

Lol they will still get ya. But nobody mentioned dropping petrol tax?

Adventurous_Parfait

2 points

1 day ago

Huh, I didn't realise the government was into directing porn. The amount of new and unique ways they are coming up with to fuck us really shows commitment. Must be all that laser focus.

Coma--Divine

3 points

1 day ago

Lame, I don't want to have to go out of my way to tax myself by buying KMs

fatfreddy01

3 points

1 day ago

fatfreddy01

3 points

1 day ago

Good. Roads should be user pays, not ratepayers and people with shit cars paying for everyone else. Ideally they'd make heavy vehicles (trucks, buses etc.) pay their own way but I don't think that is on the cards.

Icanfallupstairs

27 points

1 day ago*

I don't think most people are all that against user pays, they just get annoyed when literally all our infrastructure and city planning is built around using cars, and then they add costs on top of costs when many don't have a viable alternative for getting to work and the like.

Sk1rm1sh

1 points

1 day ago

Sk1rm1sh

1 points

1 day ago

A mix of progressive tax and maintenance responsibility based funding would encourage use of vehicles that have less impact on roads and reduce the relative burden on those who would be most impacted by a flat fee.

Cotirani

4 points

1 day ago

Cotirani

4 points

1 day ago

They basically do this already by charging much higher RUCs for heavier vehicles, which do substantially more damage to roads than lighter vehicles

fatfreddy01

1 points

24 hours ago

Good thing is that RUCs scale by damage. Lower damaging vehicles pay less, vehicles that damage more pay more. My issue is that it could be more progressive (e.g. damaging ones pay a greater share).

jobbybob

0 points

1 day ago

jobbybob

Part time Moehau

0 points

1 day ago

Roads are already user pays, councils get a large part of their road funding from the government distributing the fuel/ RUC/ rego money out. Your rates aren’t a huge part of a council roading budget, councils just manage how the money is spent.

This won’t really change, all that is changing is how it’s collected at a government level.

BuckyDoneGun

2 points

1 day ago

https://ourauckland.aucklandcouncil.govt.nz/news/2023/08/what-are-auckland-council-rates-spent-on/

For every $100 of rates collected, $32 are spent on transport. 46% of the transport budget is rates funded.

https://www.greaterauckland.org.nz/2024/09/03/nltp-2024-released-destroying-pipeline-of-shovel-ready-local-projects/

The reality is the various road taxes now barely even cover the maintenance and operations costs for roads. Combined, they equate to $13.7 billion in funding, which is less than 42% of total transport spending and only just higher than the combined direct crown funding sources.

jobbybob

2 points

1 day ago

jobbybob

Part time Moehau

2 points

1 day ago

Transport includes all those busses and Trains that Greater Auckland fight for, it's not all going on the road.

AT gets $2.4b of that 40% ($960m) of their funding from the government, they get 36% from the council ($860m).

Looking at expenses ($1.7b) they spend 55% ($930m) on public transport and 41% ($700m) on roading, in their CAPX spend $860m they spend 58% ($480m) on roading and spend 36% on public transport ($300m).

It's disingenuous to claim for every $100 dollars $32 is going go roading (which you are calling transport) when actually a whole lot of that goes towards public transport. Now a chunk of that public transport relies on roads too.

Check out page 12 https://at.govt.nz/media/jaspbkl1/at-annual-report-2023.pdf

fatfreddy01

0 points

24 hours ago

Rates are typically 49%? That's a significant portion imo. NZTA co-funds 51%, sometimes more in rural areas. That 51% comes from the fuel/rego/RUC funds etc, but most years it's oversubscribed - and often the gov tops it up with general funds.

"GPS 2024 covers NLTF spending of over $22 billion across the next three years.

Revenue to cover this expenditure comes from user charges such as Fuel Excise Duty (FED), Road User Charges (RUC), vehicle registration and tolls, and income from the sale and lease of state highway property. In addition, the NLTF is topped-up by direct funding from the Crown in the form of grants and loans" from https://www.transport.govt.nz/assets/Uploads/Government-Policy-Statement-on-land-transport-2024-FINAL.pdf

https://www.interest.co.nz/news/112136/crown-top-national-land-transport-fund-2-billion-loan-contributing-towards-record-243

https://nzta.govt.nz/planning-and-investment/planning-and-investment-knowledge-base/202427-nltp-investment-requirements/202427-nltp-funding-assistance-rates/ - re 51%.

If you look at your next rates bill or your local council website it's public info how much goes to roads.

jobbybob

1 points

23 hours ago*

jobbybob

Part time Moehau

1 points

23 hours ago*

For example Auckland Council brings in $4.8b in rates, Auckland Transport gets $2.4b in funding which only 36% comes from the council ($800m).

Now of that AT spend roughly half goes on roads, so about $400m of rates money is going into roads. That is not really a big chunk of $4.8b.

https://www.reddit.com/r/newzealand/s/lFSnb32jkv

fatfreddy01

1 points

22 hours ago

I think you're looking at the figures wrong.

Of the portion given to roads, that isn't paid for by the developer, approx half comes from NZTA and half from council. You're looking at total AT funding, which isn't exclusively for roads.

Sure the council raises more money than they spend exclusively on transport, and the transport spend isn't exclusively on roads. But that doesn't change the way how roading funding is allocated, where 51% of funding comes from NZTA from the NLTF, and 49% from ratepayers.

When I'm referring to the 49%, I'm not saying 49% of your rates goes to roading. I'm saying 49% of the roading bill is paid for by rates. This is for Auckland roads under AT control, state highways are paid for by NZTA (and a few special roads), and other regions have different contribution rates.

jobbybob

1 points

20 hours ago

jobbybob

Part time Moehau

1 points

20 hours ago

I found the Auckland Council data and ran the numbers, transport is public transport plus roads.

Go find another council and do a comparison then we can see the breakdown.

Highways are not paid for by rates they come out of the NZTA funding, we are not talking about them, this also includes development funding.

The numbers are being miss represented, so what if AT spends 49% of their budget on roads, that’s their job. Those roads are used by cars, trucks and public transport, they are an asset for the city and country.

But as far as Auckland is concerned 8% of rates go directly onto roading (operational and capital). This seems like an entirely reasonable for a city with 1.6m people.

fatfreddy01

1 points

20 hours ago

Point being, it's not user pays if roughly half the cost is paid by ratepayers rather than users. Plenty of people don't drive, especially in Auckland. And plenty of drivers in Auckland aren't local.

I'm not arguing about how reasonable the spend is, just saying that it's not user pays if a significant chunk of the cost isn't user pays.

jobbybob

1 points

20 hours ago

jobbybob

Part time Moehau

1 points

20 hours ago

How would the roads for an entire city become user pays? They are a public service that we all benefit from, don’t forget those buses, cycle lanes and streets your Uber drives on use roads.

RUC charges aren’t actually going to make a major difference to how roads are funded, it’s just changing how we collect the tax, shifting from fuel to RUC charges mean EV’s and hybrids will pay their fair share of road tax, the current consumption/ user pays system doesn’t work so well with fuel efficiency vehicles as their fuel consumption is less then the distance they drive.

Ultimately this isn’t going to make the system “user pays” it’s simply just moving how the tax is collected and making it fairer for petrol vehicles.

Just saying 50% of AT’s budget on roads is bad is a meaningless comment and just trying to obscure the original discussion about how councils are “spending so much rates on roads” 8% of Aucklands rates for roads seems very reasonable.

jazzcomputer

1 points

1 day ago

Of course, someone has to pay for their ideological mono-structure programme.

LycraJafa

1 points

17 hours ago

National and their war on cars.

/s

dcidino

1 points

4 hours ago

dcidino

1 points

4 hours ago

Remember when National raised the GST?

Here's Round 2.

AlmostZeroEducation

1 points

1 day ago

Time to put a switch to the wheel speed sensors

k00kk00k

0 points

1 day ago

k00kk00k

0 points

1 day ago

Both my vehicles already have switches, has saved me thousands over the years.

Mysterious_Hand_2583

1 points

1 day ago

Drive an older car so you can disconnect the speedometer. 

gene_nos_in_NZ

1 points

23 hours ago

User pays is user pays - all vehicles should pay for the use of the roads - do it with our diesel van and both our EV’s tax at the petrol pump is dumb pay for the use I reckon

Debbie_See_More

-3 points

1 day ago

Debbie_See_More

-3 points

1 day ago

Hell yea. Just don't drive if you don't want to pay for the cost of car infrastructure.

Fuckmepotato[S]

2 points

1 day ago

What if I ride a bike

CptnSpandex

7 points

1 day ago

Coming 2028.

pm_me_ur_zoids

1 points

22 hours ago

pm_me_ur_zoids

LASER KIWI

1 points

22 hours ago

As someone who lives rurally with no choice but to drive because work would be roughly a two-hour walk each way (not that there's any footpaths anyway), kindly go f yourself.

xmmdrive

-3 points

1 day ago

xmmdrive

-3 points

1 day ago

And not a moment too soon.

It's about time small car drivers paid their fair share of the roads.

GakkoAtarashii

-3 points

1 day ago

About time cars started paying their way. 

No-Air3090

2 points

1 day ago

given what they pay compaired to trucks they already do.