Release of the report on fuel excise duty refund and regional fuel tax (external link)entitlements

We have released the final report exploring additional fuel excise duty refund and regional fuel tax rebate entitlements. The report demonstrates that we were unable to recommend that further additional eligibility entitlements be created at this time. Our main concerns were that creating new entitlements would potentially impact efficiency (have a substantial administrative cost) and undermine the integrity of the refund and rebate system (due to the risk of fraud).

The report provides further detail on specific off-road uses of fuel, and notes:

  • Waka Kotahi the NZ Transport Agency is exploring how to improve the administration of claims, which may result in greater efficiencies and lower administration costs.

  • We are currently looking at how to fund the land transport system in the future, including options such as a distance-based charge to replace fuel excise duty, which will effectively resolve the issue relating to the off-road use of fuel.

View the questions and answers

View the final report here [PDF, 527 KB]

Additional rebate entitlements for regional fuel tax

Following the introduction of the regional fuel tax, additional entitlements were put in place expanding the situations where someone may claim a regional fuel tax rebate. 

On 21 December 2018 regulations came into force providing additional entitlements for:

  • diesel used for home heating (or water heating)
  • diesel used for electricity generation by non-commercial organisations, local and central government agencies and charities
  • petrol and diesel used in RUC exempt vehicles (as listed in the Schedule of the Road User Charges (Classes of RUC Vehicles) Exemption Order 2012)
  • petrol and diesel supplied in Auckland but then transported outside Auckland for commercial distribution.

The specific entitlement requirements are set out in the Land Transport Management (Regional Fuel Tax) Amendment Regulations (No 2) 2018 and may be viewed here(external link).

The entitlements extend to all fuel purchased since the regional fuel tax came into force in Auckland on 1 July 2018. More information, including how to apply, may be found here(external link).

Below are the key documents relating to the additional regional fuel tax entitlements.




27 September 2018

Briefing Paper

Progress on improving the regional fuel tax rebate and fuel excise duty refund entitlements. [PDF, 582 KB]

11 October 2018

Briefing Paper

Draft Cabinet papers extending the regional fuel tax rebate. [PDF, 210 KB]


Cabinet paper

Regional fuel tax rebate entitlement extension. [PDF, 376 KB]


Cabinet paper

Land Transport Management (Regional Fuel Tax) Amendment Regulations (No 2) 2018. [PDF, 156 KB]