Legislation to introduce a process for establishing a regional fuel tax, initially for the Auckland region, was introduced into Parliament on 22 March 2018 by Transport Minister Phil Twyford. The Land Transport Management (Regional Fuel Tax) Amendment Bill (the Bill) introduces a mechanism to raise funds for transport infrastructure programmes that would otherwise be delayed or not funded.  The Bill will help Auckland Council address the transport funding challenge in Auckland and meet the transport needs of its growing population and corresponding urban development.

  • The regional fuel tax is proposed to apply to petrol and diesel and be charged up to a maximum rate of 10 cents per litre, for a maximum of 10 years. It will be paid by fuel distributors when they deliver fuel to service stations and commercial users inside the region.
  • Rebates will be available to those that do not use fuel on roads. Eligibility for rebates will be confirmed when the regulations are finalised.

The Bill was referred to Select Committee for public feedback. The law is expected to be passed in June, ready for potential implementation in the Auckland region from 1 July 2018.

Under the Bill, Auckland Council must first consult with residents on the proposed projects it wishes to fund. It must then obtain Government approval before the regional fuel tax can be implemented. Auckland Council consulted on the projects it wished to fund between 1 May 2018 and 14 May 2018.  Visit the Auckland Council page here(external link).

Regional Fuel Tax for Auckland a step closer – see Minister Twyford’s announcement
(external link)

See the Regional Fuel Tax Bill here and find out more about the Parliamentary process(external link)

Regional Fuel Tax Bill has first reading - See Minister Twyford’s release(external link)

Regional Fuel Tax Regulatory Impact Analysis

Regional Fuel Tax Q&As [PDF, 122 KB]

Key documents relating to the policy development

Below are the key documents relating to the policy development of the Bill. Outlined in chronological order, the documents include briefing papers provided to the Minister of Transport, Ministerial letters, communication with Auckland Council and Cabinet papers and minutes. 

Date

Type

Document

1 November 2017

Briefing paper

Introduction of a regional fuel tax [PDF, 572 KB]

20 November 2017

Cabinet minute

Minute of decision: Auckland Urban Development and Transport Strategy: Next Steps [PDF, 54 KB]

22 November 2017

Ministerial letter

Letter to Mayor Phil Goff [PDF, 110 KB]

22 November 2017

Auckland Council letter

Letter to the Ministry of Transport [PDF, 247 KB]

30 November 2017

Briefing paper

Policy design: regional fuel tax for Auckland [PDF, 1 MB]

8 December 2017

Briefing paper

Draft Cabinet paper: Introduction of a regional fuel tax [PDF, 386 KB]

14 December

Auckland Council letter

Letter from Mayor Phil Goff [PDF, 101 KB]

20 December 2017

Cabinet Paper

Introduction of a regional fuel tax [PDF, 881 KB]

20 December 2017

Cabinet minute

Introduction of a regional fuel tax [PDF, 200 KB]

23 February 2018 

Briefing Paper

Matters for decision on the draft Land Transport Management (Regional Fuel Tax) Amendment Bill 2018 [PDF, 712 KB]

1 March 2018

Briefing paper

Land Transport Management (Regional Fuel Tax) Amendment Bill – Approval to Introduce [PDF, 268 KB]

3 March 2018

Ministerial letter

Land Transport Management (Regional Fuel Tax) Amendment Bill [PDF, 89 KB]

22 March 2018

Cabinet paper

Land Transport Management (Regional Fuel Tax) Amendment Bill: Approval for Introduction [PDF, 530 KB]

22 March 2018

Cabinet minute

Land Transport Management (Regional Fuel Tax) Amendment Bill: Approval for Introduction [PDF, 146 KB]