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What you need to know

A regional fuel tax provides a way for regional councils to raise revenue to fund transport projects in their region that would otherwise be delayed or not funded.

In 2017, the Minister of Transport, following support from Auckland Council, asked us to do work to enable a regional fuel tax in Auckland. At the end of 2017, we provided briefing papers about how a regional fuel tax in Auckland could be implemented and the Minister took proposals to Cabinet. Early in 2018, Cabinet approved the introduction of a Bill and we prepared regulatory impact assessments (RIAs). The Bill was considered by the Finance and Expenditure Select Committee and was passed by Parliament into law. The Land Transport Management (Regional Fuel Tax) Amendment Act 2018 came into effect in June 2018.

From 1 July 2018, a 10 cent per litre regional fuel tax on petrol and diesel applies in Auckland through the Land Transport Management (Regional Fuel Tax Scheme—Auckland) Order 2018. Later in 2018, we reviewed who is entitled to a rebate of the regional fuel tax.

The work to date

Sep 2018–Oct 2018

Petrol excise duty refund and regional fuel tax rebate entitlements reviewed

After the regional fuel tax came into effect in Auckland, we reviewed the range of situations where someone can claim a rebate of regional fuel tax.

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Jul 2018

Regional fuel tax comes into effect in Auckland

A 10 cent per litre regional fuel tax applies to petrol and diesel sold in the Auckland region from 1 July 2018 until 30 June 2028.

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Jun 2018

Regional fuel tax legislation becomes law

After a select committee process that included 500 public submissions, Parliament passed the regional fuel tax legislation into law on 26 June 2018.

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Feb 2018–Mar 2018

Bill is introduced to Parliament

Before Cabinet approved the introduction of the Bill, the Ministers of Transport and Finance made decisions on issues that arose when the legislation was being drafted and we prepared an RIA. Cabinet agreed to the Bill being introduced to Parliament.

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Dec 2017

Policy proposals presented to Cabinet

Cabinet approved the overall policy design of the regional fuel tax and agreed that the legislation could be drafted. The Ministers of Transport and Finance were authorised to make final decisions about any details that arose during the drafting of the Bill.

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Nov 2017–Dec 2017

Minister of Transport briefed about introduction of a regional fuel tax

We provided briefings to the Minister about how the Government could implement a regional fuel tax, focused on Auckland.

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