Road user charges coming to EVs from April 2024

The New Zealand Government has announced that owners of electric vehicles and plug-in hybrids will be required to pay road user charges (RUC) from the start of April.

“This transition to RUC is about fairness and equity. It will ensure that all road users are contributing the upkeep and maintenance of our roads, irrespective of the type of vehicle they choose to drive,” says Transport Minister Simeon Brown.

EVs will be charged $76 per 1000km, amounting to around $1000 a year based on the average annual distance of 12,000km travelled by electric cars in New Zealand, according to the AA.

To ensure plug-in hybrid owners aren’t stung twice by petrol tax and RUC, they will be charged a reduced rate RUC of $53 per 1000km as they use far less fuel than your average petrol-powered car.

With the exception of non-plug-in hybrids, electrified have been exempt from paying RUC since 2009 to encourage their uptake. However, Brown says that the government always planned to introduce a charge once the electric car fleet hit around 2 per cent. It currently sits at 1.6 per cent according to EVDB.

“With the increasing uptake of EVs and plug-in hybrids being brought into the RUC system, this means that these vehicles will now be contributing towards the maintenance and upkeep of our roading system like all other road users and will support the Government’s priority of building and maintaining our roading network.” 

EV and PHEV owners will need to purchase a road user charge license from April 1, 2024, but there will be a two-month transition period to allow people to get registered in the RUC system.