Will I get a big fine if I don’t have my act together by April 1?
No. It’s not highlighted anywhere on NZTA’s site, presumably because it wants people to get a wriggle on. Minister Brown’s January 16 announcement confirming EVs would lose their road-user charges exemption from April 1 included the line: “There will be a two-month transition period to allow time for people to get registered in the RUC system without being penalised for unpaid RUC”.
This means owners have until May 31 to get their first RUC licence and buy their first pre-paid block (or “unit”) of 1000km (or more) in road-user charges.
It’s standard for any regulation to have an education and warning-letter phase — but if you do the right thing from the get-go, you’ll beat the last-minute rush.
How will police or VTNZ know if I’m dragging my heels?
When you pre-pay for your first block (or unit) of road-user charges, you’ll get a RUC licence to display on your windshield.
It’s the same size and blue-grey format as a rego label.
It’ll feature your plate number and — for easy digestibility by law enforcement — your mileage at the time you bought the block of RUCs (e.g. 40,300km) and what your odometer will read at the end of your pre-paid RUCs (e.g. 41,300km).
You can get an infringement notice from police if you fail to display a valid RUC licence on your windscreen.
When you go for a warrant of fitness at VTNZ or another agent, your odometer reading will be checked.
What if I’m over my RUC limit when I get a WOF?
If the odometer exceeds the RUCs purchased by the vehicle’s owner, they will be invoiced the difference.
The owner must pay within two months, or a penalty equal to 10 per cent of the amount owning will be applied.
If it’s still unpaid after three months, a further 10 per cent will be added.
What if I fib about my mileage?
If you try to cheat the process in any way, you’ll be liable for a fine of up to $15,000.
So, what are the charges for EVs?
Owners of 1001kg-3500kg battery electric vehicles (BEVs or full-electric vehicles like every Tesla or BYD) have to pay $76 for every 1000km they drive.
Mileage must be pre-paid.
The AA says the average Kiwi driver clocks just under 12,000km a year, which works out to $912 a year in EV RUC — or probably the best part of $1000 once admin fees (below) are chucked in.
What’s the rate for plug-in hybrids?
If you have a plug-in hybrid electric vehicle (PHEV) like the popular Mitsubishi Outlander, you’ll pay $38 per 1000km.
The reduced amount reflects the fact that a PHEV runs on both an electric motor and a petrol-powered internal combustion engine (which takes over when the battery is depleted), so owners are already paying petrol tax.
Did it change at the last minute?
Yes. PHEVS were going to be charged $58 per 1000km, but because most plug-in hybrids have small batteries that degrade over time, and end up spending a lot of time running petrol, there were overcharging concerns as PHEV owners paid both RUCs and petrol tax.
Are there admin fees?
Yup. There will be an admin fee of $12.44 each time you pre-pay for a block of mileage online or $13.71 over the counter.
Where do I buy a RUC licence?
Via NZTA’s website (which will be operational on April 1, a public holiday this year) or at any NZTA agent such as AA, VTNZ or NZ Post PostShop.
If you pre-pay online, your RUC licence label for your windshield will be sent in the post.
If you pay over the counter, you’ll get your label immediately.
How many RUCs can I buy at once?
You can pre-pay for up to six RUC licences, and each licence can be for up to 99 units (a unit is a block of 1000km in RUC-speak). In other words, with one licence, you can pre-pay for up to 99,000km, although NZTA advises you should consider factors such as whether you’re likely to sell your vehicle.
Do I have to pay RUCs if I’ve got an electric van or truck?
Not if it’s more than 3000kg. EVs above that weight will maintain their exemption until December 31, 2025.
Does a hybrid have to pay RUCs?
No, a hybrid, such as a Prius, does not have to pay. If a car doesn’t recharge from a wall outlet, you don’t have to pay.
What else is exempt?
Anything below 1000kg. So there are no RUCs for e-scooters, e-bikes, e-mopeds or e-motorcycles.
What if I sell my car?
Its RUCs go with it. NZTA says the RUCs belong to the vehicle, not you.
What if my car is written-off in a crash?
If your car is de-registered, you can get a RUC refund.
Why is the Government whacking EVs with RUCs?
In 2016, the then-National government granted electric vehicles an exemption from road-user charges to encourage uptake.
It was always billed as a temporary exemption until EVs reached 2 per cent of New Zealand’s fleet — a point they hit last year on the back of the Clean Car Discount surge that put more than 100,000 fully electric vehicles and PHEVS on our roads.
The last Labour government also supported the imposition of RUCs on EVs from April 1.
Both major parties are mindful that fuel tax contributes about $2 billion towards the cost of funding and maintaining roads.
That sum would otherwise be seriously eroded as New Zealand’s fleet electrifies.
Will it still be cheaper to run an EV?
Some EV owners have said they support RUCs in principle, but not at $76 per 1000km, which they say works out to about double what a fuel-efficient petrol car such as a Suzuki Swift pays in fuel excise tax.
The counterargument is that EVs are heavier, so cause more wear and tear on roads.
Pro-EV group Rewiring Aotearoa ran numbers (peer-reviewed by Professor Shaun Hendy) that found even with RUCs, an average-priced EV’s annual running costs ($3867 with public charging, $2230 with home charging) would still work out cheaper than an average-price petrol car ($4336).
However, because the average price of a new EV ($56,300) is so much higher than the average cost of a new petrol car ($37,900), the picture is more mixed when up-front costs are factored in, with the total cost of ownership of a petrol car falling between a publicly charged EV and a home-charged EV.
NZTA answers reader questions
Reader: Do I have to pay the admin fee for every block of 1000km?
NZTA: No. The admin fee is charged each time you buy a RUC licence but one licence can include anything from one “unit” (that is, one block of 1000km) to 99 units (99,000km of driving).
The most common purchase is 10,000km (that is, a RUC licence with 10 units). That would incur one admin fee.
How is mileage accessed when I buy my first block of RUCs? Is there an odometer reading? Do I write a number down and it’s taken on faith?
EV owners are obliged to provide an accurate reading at the point of purchase. If you buy online you’ll be required to tick a box declaring that your odometer reading is accurate, or if you buy in person you’ll need to sign a form to confirm the information you provide is accurate. Any inaccuracies will be picked up when your vehicle goes for its next WOF, and you’ll be invoiced for any unpaid RUC then. We have other checks in place so are well placed to make assessments of what a reasonable odometer reading would be. [As covered above, there is a fine of up to $15,000 if you’re caught trying to cheat the system.]
Do I have to prepay the RUCs? Must I always have more “unused” RUCs? That is, always have paid more than I used? Could I buy say 1000km and then pay what is owing when I get my WOF say six months later?
When you buy RUC, you pay in advance for the distance you’re going to travel. You must buy a new licence before you’ve driven all the distance covered by your current licence. It’s against the law to drive a RUC vehicle without an up to date RUC licence and you risk receiving an infringement notice by police.
More than 5000 fines were issued last year for unpaid RUC for light diesel vehicle owners in 2023. In addition, NZTA will pick up unpaid RUC at the vehicle’s next WOF.
I own a BMW i3 with a petrol range extender. It has about the same range on electric and petrol, about 120km on each. Does this model count as a PHEV for RUC purposes, or is it considered a full BEV?
This would be considered a PHEV for RUC purposes.
I have a 2012 Prius PHEV which could plug in at the wall, but the socket is broken and Toyota has quoted over $2500 to fix it. This does not make sense as the battery capacity when I bought it was only around 12km and when it broke could barely exceed 10km. It’s not worth it to fix. Do I have to pay RUC?
If it’s a PHEV then it is subject to RUC, even if the charge-in capacity is not being used due to being broken. The RUC rate for a PHEV is $38 per 1000km. The owner of the vehicle would also need to ensure that the vehicle has been certified as safe for operation on the road, given that the socket is broken.
Can I remove the plug from my PHEV and get it recertified a plugless hybrid, not subject to RUC? (Ken McAdam of the Low Volume Vehicle Technical Association, which represents vehicle certifiers, said as soon as the road user change was announced, his organisation started getting inquiries about converting plug-in vehicles to non plug-in, which can cost around $1000 and is a legal grey area).
NZTA advises vehicle owners not to attempt to modify a PHEV to a HEV (hybrid electric vehicle), as an improper or incomplete modification might affect the safe operation or performance of the vehicle.
I’m an EV owner but I haven’t seen the NZTA’s letter or email explaining the changes.
A copy is online here.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
