THE TRUSTED VOICE OF THE
NZ AUTO INDUSTRY FOR 40 YEARS

Shift to RUC on agenda

Moving the fleet to RUC, driver-licensing changes and immigration on PM’s third-quarter action plan.
Posted on 08 April, 2025
Shift to RUC on agenda

The cabinet is expected to consider decisions on transitioning New Zealand’s fleet to road-user charges (RUCs) over the next quarter.

The issue is among 38 actions the government has announced it will take over the next quarter.

It has previously addressed the issue of transitioning the light fleet to RUCs as soon as 2027 to ensure the system for funding transport investment remains viable. 

That’s because with vehicles becoming more fuel-efficient, the government believes excise tax on petrol is no longer sustainable.

The list of actions includes public consultation on changes to the driver-licensing system. On the immigration front, the cabinet is expected to make decisions on parent visa boost, which will enable migrants to sponsor their parents or grandparents to come here. 

The government also aims to launch a tourism growth roadmap, which is the second phase of its plan to boost tourist numbers and drive economic growth. Other third-quarter actions include:

• Taking cabinet decisions to refocus WorkSafe and the WorkSafe New Zealand Act to reduce unnecessary compliance costs for business while enhancing worker safety.

• Introducing the Regulatory Standards Bill to improve the quality of regulation by ensuring regulatory decisions are based on principles of good law-making and economic efficiency. 

• Taking cabinet decisions on anti-money laundering and countering financing of terrorism reforms to improve the supervisory and funding model.

• Reducing the burden on business while enhancing access to financial services for everyday Kiwis.

Prime Minister Christopher Luxon says: “There are positive signs of the economic turnaround this government was elected to deliver. Our latest quarterly plan lays out more of the actions we will take to rebuild the economy, reduce the cost of living and make Kiwis better off.”