Search and rescue vessels will be refunded the excise duty on petrol.
Transport Minister Mark Gosche said the Coastguard had requested that it be given the same exemption on excise duty that is currently available to commercial vessels.
Their case for the refunds had been strongly argued by East Coast MP Janet Mackey.
"Search and rescue organisations such as the Coastguard provide an invaluable service free of charge, and save hundreds of lives a year. It is only fair that these organisations get this exemption," said Mr Gosche.
"While it is not a lot of money involved, probably about $30,000 a year, this will make a big difference to the Coastguard which is a voluntary organisation with limited funds.
"In the International Year of Volunteers it is particularly appropriate that we support such a vital community service."
Tax break for Coastguard volunteers
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