August 19, 2025

Changes to Road User Charges

New Zealand is planning to change the way road use is paid for. Currently, most vehicle users pay a fuel tax when they buy their fuel. This tax is applied whether intending to use the fuel while using the road, or at home, on the water or on the farm.

Meanwhile, diesel, hybrid and EV users pay Road User Charges (RUC's) on their mileage.

What is proposed is a system whereby each car will be tracked, and mileage paid via a GPS connection. Obvious issues arise when it comes to people driving off road, on farms and the like. Also, people buying fuel for their lawnmower or home generator will no longer be subsidising car use, and so more will need to be charged to car users to make up the difference. 

Simon Kingham, Professor of Human Geography at the University of Canterbury wrote a delusional piece where he's convinced himself the proposed measure will save lives. It won't, because fuel will be cheaper if you don't register your car. Even now, in rural areas, car registration non-compliance is at record highs. In some provinces, as many as 60% of cars are not registered, and, therefore, do not have a current Warrant of Fitness (WOF). The proposal is an added incentive to NOT obtain a WOF, leading to cars being less safe, with more cars having dodgy brakes and bald tyres. How will this lead to more deaths - reading this Prof Kingham? Most road deaths occur on rural roads, outside of cities, that's why. 

But, it doesn't end there, as this is not about taxing more efficiently. In fact, what is proposed is far less efficient. It is about selling off the roads to private enterprise. The government need to do this to pay off its debts. That's right, they're going to privatise RUC's and to do this they need to move the revenue from road use over to a separate platform and away from the government. 

Author of the Dog and Lemon Guide, Clive Matthew-Wilson explained what is going on (see below). Stand up to this as it is the thin edge of the wedge. After they've sold the roads, they'll disappear your Kiwisaver, and then go cashless. Mark my words. 

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