The government ministry responsible for transport policy, including designing New Zealand's Road User Charges system. Being merged into MCERT by July 2026.
The Ministry of Transport (Te Manatū Waka) is the New Zealand government ministry responsible for transport policy advice and regulation. It is the architect of the RUC system - developing policy settings, rate structures, and the legislative framework, while Waka Kotahi NZTA handles operational implementation. The Ministry leads the RUC Transition Programme to shift all vehicles from fuel excise to distance-based charging, authors the Government Policy Statement on Land Transport (GPS), and advises the Minister of Transport on all aspects of transport funding, safety, and regulation. In December 2025, the government announced the Ministry would be merged into a new Ministry of Cities, Environment, Regions and Transport (MCERT) by July 2026, combining the Ministry of Transport with the Ministry for the Environment, Ministry of Housing and Urban Development, and local government functions from DIA.
Designs the policy framework for road user charges - rate structures, exemptions, transition pathways, and the shift from fuel excise to universal distance-based charging.
Sets the strategic direction for land transport investment, including how NLTF revenue (RUC + fuel excise) is allocated across roads, public transport, and safety.
The programme to transition all New Zealand vehicles from fuel excise duty to distance-based RUC, targeting universal coverage by 2028.
Develops transport bills and regulations including the Road User Charges Act 2012 and its amendments.
Ministry of Transport established by the Ministry of Transport Act 1968, merging the Transport Department, Civil Aviation Department, and Meteorological Service.
Road User Charges Act 1977 passed - introducing distance-based charging for diesel and heavy vehicles. Hubodometers required for vehicles over 3.5 tonnes.
Major restructure strips operational functions. MetService established as SOE. Civil Aviation Authority, Maritime Safety Authority, and other agencies spun out.
Land Transport Management Amendment Act introduces the GPS framework. NZTA created from merger of Land Transport NZ and Transit NZ.
Road User Charges Act 2012 enacted, modernising the legislative framework and replacing the 1977 Act.
Ministry begins formal work on transitioning from fuel excise duty to universal distance-based road charging.
'Driving Change' RUC consultation document published. Major public consultation on modernising the RUC system.
EV/PHEV RUC exemption ended (1 April). GPS 2024 published directing ~$7B/year. $32.9B NLTP launched.
Land Transport (Revenue) Amendment Bill introduced (November). RFI released for open retail RUC services framework. Chris Bishop takes over as Minister of Transport.
Ministry to be merged into MCERT (Ministry of Cities, Environment, Regions and Transport) by July 2026. eRUC retail framework target: 'open for business' 2027.
Minister of Transport
Appointed January 2025. Also Minister for Infrastructure, Housing, and RMA Reform. Leading the creation of MCERT.
Associate Minister of Transport
Appointed January 2025. Delegated responsibility for the maritime sector.
Acting Secretary for Transport / Chief Executive
Joined January 2026 from the Ministry of Housing and Urban Development. Leading the Ministry through the MCERT transition.
The Ministry of Transport is the architect of New Zealand's RUC system. While NZTA handles day-to-day administration and collection, the Ministry designs the policy framework, sets strategic direction, and leads the multi-year transition from fuel excise to universal distance-based road charging. It authors the key legislation (including the Land Transport (Revenue) Amendment Bill 2025), advises the Minister on rate settings, and manages the RFI/RFP process for the future retail RUC services framework. New Zealand is the first country to commit to a nationwide distance-based charging system for all vehicles.
From 1 April 2024, electric vehicles and plug-in hybrids lost their longstanding RUC exemption, ending a subsidy that had been in place since 2009. Light EVs now pay $76 per 1,000km and PHEVs pay $53 per 1,000km. The transition provided a grace period until 31 May 2024 for EV owners to purchase their first licence without penalty.
In August 2025, Transport Minister Chris Bishop announced what he called 'the biggest change to how we fund our roads in 50 years' - a plan to transition all 3.5 million light petrol vehicles from fuel excise duty (~70c/litre) to an electronic road user charges system. The Ministry of Transport launched a Request for Information in November 2025 seeking market insights to design a competitive retail services framework, with the digital RUC system going live in 2027 and the full light vehicle transition expected sometime in 2028 (exact date not yet confirmed by Cabinet).
The Land Transport Management (Time of Use Charging) Amendment Bill passed its third reading in November 2025 with unanimous cross-party support, enabling local authorities to implement congestion pricing schemes. Auckland is expected to be the first city to adopt time-of-use charging. The bill exempts emergency vehicles and school buses, though Labour raised equity concerns about the impact on workers with inflexible schedules.
Transport Minister Simeon Brown released the Government Policy Statement on Land Transport 2024, committing over $20 billion in transport investment prioritising economic growth, maintenance, and safety. To fund the programme, the government announced motor vehicle licensing fee increases, staged fuel excise duty and RUC-equivalent increases of 12c, 6c, and 4c per litre in 2027, 2028, and 2029, alongside a $3.1 billion Crown grant and $3.1 billion Crown loan.
