The New Zealand Government has introduced the Land Transport (Revenue) Amendment Bill to Parliament [link], taking the next step towards a fairer, simpler, and more modern transport funding system.

Transport Minister Chris Bishop says the Bill makes important changes across road user charges and tolling frameworks, ensuring New Zealand is ready for the next generation of road building.

Key provisions in the Bill include:

• Removal of paper RUC licenses in favour of digital records
• Enabling new payment models like subscriptions or post-payment options
• Allowing accurate in-vehicle technology to record distance
• Separating NZTA's regulatory role from its retail role so third-party providers compete on a level playing field
• Supporting flexible, "set-and-forget" billing options similar to power or streaming services.

"The Bill provides improvements to the outdated RUC system. It was designed in the 1970s and still relies on manual paperwork and paper licences," Mr Bishop says. "Right now, drivers paying RUC have to track their odometer readings and stick paper labels to their windscreen."

Minister Bishop confirmed the government expects to pass legislation in 2026, with the RUC system "open for business" by 2027. The government will assess the improved system in 2027 before deciding on next steps for transitioning the remaining 3.5 million light petrol vehicles.

For fleet managers, these changes represent the first step towards replacing petrol tax with RUC for all vehicles. The time to prepare is now.