Draft legislation for the proposed regional fuel tax was introduced to Parliament late last week, (Land Transport Management (Regional Fuel Tax) Amendment Bill (38-1)) and is expected to be passed in June with an implementation date from 1 July 2018.


The purpose of the fuel tax is to establish a mechanism to gather funding for regional transport infrastructure programmes that would otherwise be delayed or not funded.

The fuel tax will:

  • apply to both petrol and diesel (but not CNG or LPG)
  • be collected at the distributor level
  • be used toward the funding of capital expenditure on transport infrastructure programmes
  • have a maximum rate of 10 cents per litre of fuel
  • be subject to GST
  • have a maximum duration of 10 years, subject to renewal
  • apply initially only to the Auckland region
  • be available to other regions from 1 January 2021
  • go to the regional council in the region where the fuel is sold
  • allow for rebates for off-road use.

For more information, you can access the Bill here and review the Bill’s progress here.

Shelley-ann Brinkley
Associate – Tax Consulting
T +64 9 414 5444
E shelley-ann.brinkley@hayesknight.co.nz