We’ve designed a new funding model that makes sure we have enough funding to be a good regulator, and that costs are fair, with the right people paying for the right things.
The model is called a ‘cost recovery’ model because it makes sure we get back (recover) all the money we spend (costs) to provide services.
The model is based on the principle that everyone who benefits from the land transport system, or who creates risk in the system, helps pay for its regulation.
- rebalances the funding system
- increases the share of costs the transport industry pays, because of the:
- benefits they get from the system
- need for more regulatory activity in the area
- move to a risk-based system over time
- starts to charge for services that were free, to make sure:
- the system is properly funded
- the system is fair
- costs are paid by the people and businesses that generate them (user pays)
- uses land transport revenue to fund some things - frontline regulatory work, core regulatory capacity (the number of people needed to do the job) and our regulatory capability (our ability to do our job as regulator properly, with the right people the right skills, and the right platform).
Important information about numbers in the proposals
- The proposed fees and charges in this document are based on estimated costs including labour, volume forecasts and inflation estimates.
- The figures are subject to change, and may increase or decrease as a result of:
- this consultation
- whether our application for allocation of land transport revenue (Proposal 1) is successful in whole or in part
- changes to costs and variables where we have had to make an assumption (eg labour costs, inflation, volume forecasts)
- further technical changes.
- All calculations assume changes to funding, fees and charges are implemented in 2023. If implementation shifts further into the future, costs may need an inflation adjustment.
- The current fees shown in Proposals 2–8 for services that include testing are best estimates and include an average testing fee amount. This is because some people need to take tests more than once to get their licence, endorsement or other permission.
- We’re proposing to broaden our discretionary powers to remove automatic entitlement to specific refunds or part refunds or waive any fee, or part of a fee, on a case-by-case basis for special circumstances in the driver licence class endorsements.
- Further changes may be needed as a result of the 2022 consultation Driving Change: Reviewing the Road User Charges System.
- The proposed fees and charges have been described in a general way, and final descriptions in regulations may include further detail.
- All numbers in this document reflect only the Waka Kotahi portion of a fee or charge. For example, what you’re actually charged when you get your WoF or CoF may differ from this figure, as businesses add their charge on top. This makes it difficult for Waka Kotahi to predict how much total costs would change for end users.
- Waka Kotahi also collects revenue on behalf of other government agencies (eg Police vetting fees, ACC levies). Changes in this document only relate to the fees charged by Waka Kotahi. We don’t control charges from other agencies.
- Proposals 2–8 assume that land transport revenue can be used to contribute funding to safety systems and public good (public benefit) aspects of the regulator, and repayment of rectification loans. This extra revenue is outlined in Proposal 1, applying section 9(1A) of the Land Transport Management Act.