The central government ministry responsible for transport policy, including the design and modernisation of New Zealand's Road User Charges system.
The Ministry for Cities, Environment, Regions and Transport (MCERT) became operational on 1 July 2026. It brings together the former Ministry of Transport, Ministry for the Environment, Ministry of Housing and Urban Development, and local-government functions previously held by the Department of Internal Affairs. The transport.govt.nz site now identifies the organisation as MCERT and retains the former Ministry of Transport's transport-sector policy, regulatory, evidence, investment and stewardship functions. For Road User Charges, MCERT is the policy architect rather than the day-to-day operator. It develops policy settings, legislation and regulations, while NZTA administers licences, collects revenue and regulates approved providers. The ministry leads the transition from fuel excise duty to electronic RUC for the light petrol fleet, authors the Government Policy Statement on Land Transport, and advises ministers on transport funding and regulation.
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 modernise the existing RUC system and prepare the light petrol fleet to move from fuel excise duty to distance-based charging. Cabinet has not yet set the date for the full-fleet transition.
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.
MCERT became operational on 1 July, absorbing the former Ministry of Transport and retaining its transport-policy functions. Consultation on the outcome-focused regulations for electronic distance recorders, provider approval, monitoring, privacy and alternative payments closed in June. The Land Transport (Revenue) Amendment Bill completed its second reading on 30 June and remained before Parliament.
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.
Chief Executive, MCERT
Leads the Ministry for Cities, Environment, Regions and Transport, which became operational on 1 July 2026.
MCERT inherited the former Ministry of Transport's role as policy architect of New Zealand's RUC system on 1 July 2026. While NZTA handles day-to-day administration and collection, MCERT designs the policy framework, prepares legislation and regulations, advises ministers on rate settings, and leads the transition from fuel excise to electronic road user charging. The Land Transport (Revenue) Amendment Bill had completed its second reading by 30 June 2026 but had not yet become law.
From 1 April 2024, electric vehicles and plug-in hybrids lost their longstanding RUC exemption, ending a policy that had been in place since 2009. Light EVs pay $76 per 1,000km and PHEVs pay $38 per 1,000km. The transition provided a grace period until 31 May 2024 for 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 former Ministry of Transport launched a Request for Information in November 2025 seeking market insights for a competitive retail-services framework. Enabling legislation is expected to take effect in 2027, but Cabinet has not fixed the date for moving the full petrol fleet.
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.
