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New enhanced FAR and proposed national programmes

A new targeted enhanced funding assistance rate (FAR) has been approved by the NZ Transport Agency to assist councils in bringing forward new high and very high priority locally-led improvement activities for the 2018-21 National Land Transport Programme (NLTP).

The Government Policy Statement on land transport (GPS) (external link) establishes new key priorities for safety and access, supported by environment and value for money.  The Transport Agency and Local Government New Zealand (LGNZ) have been working together through our joint Sector Reference Group to explore how best to assist councils to take up the opportunities provided by the GPS.

This work recognises there may be financial challenges for some councils to take up these opportunities. The new enhanced FAR will mean up to 50% more funding for locally delivered improvement activity classes provided projects meet the following requirements:

  • projects must be high and very high priority projects assessed against the Transport Agency’s Investment Assessment Framework (IAF)
  • projects which are not high and very high priority will continue to be funded at normal FARs
  • the new FAR is set halfway between a council’s normal FAR rate and 100% for all locally delivered improvement activity classes
  • a maximum enhanced FAR is set at 90% to ensure that councils continue to have a level of cost ownership and aim for value for money
  • the new FAR will be conditional on councils redirecting funding that would otherwise have been spent on the project into other transport-related projects
  • there is an understanding that councils which accept the new FAR will deliver the agreed project(s)
  • the new FAR only applies for the 2018-21 NLTP.

All projects, whether new or already submitted in an RLTP, which meet the eligibility criteria will be automatically be eligible for an enhanced FAR.  Councils may choose not to take up the new FAR. For example, a council may be unable to identify any new eligible project, or to raise local share to progress the project. In those instances please contact your Transport Agency representative.

New national programmes

The Transport Agency and LGNZ are working together to ensure that the best contributing projects in all activity classes have the best chance of receiving funding from the National Land Transport Fund (NLTF). Our joint Sector Reference Group is establishing five new national programmes which we have selected for their alignment with the increased funding available.

The new national programmes are:

  • safety on local roads
  • improving the effectiveness of public transport
  • walking and cycling improvements
  • improving network resilience
  • regional improvements.

Representatives of local government and the Transport Agency are working together to identify new projects that will achieve a high or very high results alignment assessment, and bring them forward for inclusion in the NLTP.

Please read our National Programmes FAQs [PDF, 534 KB] for more information.

If you have any questions about the new FAR, National Programmes or the NLTP please contact your local Transport Agency representative or email