Our December blog explored the potential changes to road user charges (RUCs) for Electric Vehicles (EVs) and Plug-in Hybrids. Fast forward to today, and what was once a topic of discussion has now become a reality. The government has officially announced a policy shift regarding RUCs, impacting these eco-friendly modes of transportation.
Don’t worry - we’ve got you covered! We’ve summarised the recent announcement so you can see exactly how to prepare your fleets for this upcoming change.
What it Means
Transport Minister Simeon Brown emphasises that the exemption from road user charges for owners of light EVs and plug-in hybrids will conclude on April 1st 2024.
The rationale behind this move is to promote fairness and equity among all road users, ensuring everyone contributes to the maintenance of our road infrastructure.
This will result in…
Fair Contribution - EVs and plug-in hybrids, previously exempt from RUCs, will now contribute their fair share to the costs of maintaining roads, aligning with the National-Act coalition commitment to include all vehicles in the RUC system.
Reduced Rate for Plug-in Hybrids - Recognising plug-in hybrids already pay petrol tax, a reduced RUC rate of $53 per 1000 kilometers will be applied to avoid double taxation. This ensures fairness for those utilising both electricity and petrol for their vehicles.
Legislation Changes - Legislation changes will be implemented before April 1st to enable the reduced RUC rate for plug-in hybrid vehicles, providing a structure and transparent framework for this transition.
How You Can Prepare Your Fleet
As a fleet manager of EV and plug-in hybrid vehicles, being prepared for these changes is key to a smooth transition and less vehicle downtime. Here are some points to help you navigate this change:
Purchase RUC Licences - From April 1st, owners of light EVs and plug-in hybrids need to purchase RUC licences. There will be a two-month transition period to allow for registration without penalties for unpaid RUC, however, it’s good to be prepared and avoid the last-minute rush.
Understanding Rates - Familiarise yourself with the rates to incorporate them into your budget effectively ($76 per 1000 kilometers for light EVs and a reduced rate of $53 per 1000 kilometers for plug-in hybrids).
Stay Informed - Keep an eye out for communications from the NZTA. They will be reaching out to EV and plug-in hybrid owners with detailed information about the transition to RUCs and what it means for you.
Change is the only constant so it’s important to embrace it with a positive outlook. After all, the shift to RUCs for EVs and plug-in hybrids is a small step toward a more equitable and sustainable road infrastructure.
Let’s continue to drive the change we want to see in the world, one eco-friendly kilometer at a time.
