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Funding sources for the NZTA's investment in New Zealand's transport system

Updated: 12 January 2012

New Zealand's road users primarily fund the country's land transport system through fuel excise duty (petrol tax), charges on diesel and heavy vehicles (road user charges) and vehicle registration and licensing fees. These funds are paid into the National Land Transport Fund (NLTF) for investment in maintaining and improving land transport networks and services. Other funding comes directly from the Crown (central government), from local authorities and other sources such as financial contributions for development.

To learn more about sources of funding assistance available for investment in land transport activities see the Planning & Investment Knowledge Base.

The NLTF

We make allocations from the NLTF to fund:

Find out more about how we allocate NLTF funds.

Crown funds

The Crown funds some of our activities directly, through the Ministry of Transport (MoT). This is funding separate to the NLTF. We manage these funds on behalf of the MoT, allocating them to activities such as:

  • the fast tracking of high priority state highway activities, for example a number of activities aimed at improving the network across the country gained additional Crown funds through the February 2009 fiscal stimulus package
  • investing in regional development activities in specific regions to improve transport linkages for the forestry industry
  • providing for public transport fare concessions for retired New Zealanders through the SuperGold Card scheme.

Though these funds are not part of the NLTF, we manage them in much the same way - applying criteria, prioritising, programming and reviewing them - to ensure a simple and transparent funding process.

Funds from local government - local share

Regional, district and city councils are responsible for delivering land transport infrastructure and services in their areas. We contribute some of the funding for these local activities through the NLTP. We allocate this contribution through a funding assistance rate (FAR), according to criteria set by the Minister of Transport.

Local government source the remaining funds - the local share - through:

  • local rates
  • other sources such as developer contributions.

Find out more about how local government develop their transport programmes.

Other funds

Other sources of funding for activities funded through the NLTP supplement the NLTF. These include:

  • developer contributions - from developers for benefits their developments gain from land transport infrastructure improvements
  • betterment contributions - from landowners that benefit from road improvements
  • other contributions from approved organisations, community groups or other entities, eg funding from ACC
  • funds generated from road tolls for new land transport infrastructure, eg, the Northern Gateway Toll Road
  • public transport fares and advertising revenue.

Have your say on what gets funded

Find out how you can have input to proposed transport activities.