RUCs to apply to all vehicles (incl EVs), replacing road user tax on petrol

Forums › Transport (cars, bikes and boats) › RUCs to apply to all vehicles (incl EVs), replacing road user tax on petrol

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#3260931 18-Jul-2024 09:31

Scott3:

PolicyGuy:

It's going to be interesting to see how they're going to treat motorcycles, scooters and motorised tricycles. They pay through the fuel levy a.t.m., so giving them a free ride from RUCs seems inequitable, but ...

Under current legislation, they would be required to pay. No distinction on weight or number of wheels for non electric light vehicles (except sub 300W e-bikes and e-scooters which are declared not to be motor vehicles)

However for some reason we decided to exclude light electric motorbikes. Came very late in the piece, I can't recall reasons ever being shared.

I might be wrong but I thought motorcycles and scooter were exempt becuase RUCs are only applicable to vehicles with axles and they don't meet that definition?

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#3260934 18-Jul-2024 09:51

Senecio:

I might be wrong but I thought motorcycles and scooter were exempt becuase RUCs are only applicable to vehicles with axles and they don't meet that definition?

A new definition and category was written into legislation to cover them:

https://legislation.govt.nz/act/public/2012/0001/latest/whole.html#DLM3394838

Motorcycles do have axles, and without the exemption would fit into RUC type 1.

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#3260963 18-Jul-2024 10:43

HarmLessSolutions:

Motorcycles already get stung hugely in terms of registration charges so is it really necessary to recoup what is a tiny cost recovery item.

I think you are confusing annual vehicle licencing (i.e. rego) fee and ACC levy which is paid at the same time. The ACC levy is what makes motorcycles so expensive. I recall some discussion that NZTA would stop collecting the ACC levy at the same time and it was up to ACC to collect their payments, but not sure it went anywhere. The annual cost to licence a vehicle is only ~$50.

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#3260973 18-Jul-2024 11:08

scuwp:

HarmLessSolutions:

Motorcycles already get stung hugely in terms of registration charges so is it really necessary to recoup what is a tiny cost recovery item.

I think you are confusing annual vehicle licencing (i.e. rego) fee and ACC levy which is paid at the same time. The ACC levy is what makes motorcycles so expensive. I recall some discussion that NZTA would stop collecting the ACC levy at the same time and it was up to ACC to collect their payments, but not sure it went anywhere. The annual cost to licence a vehicle is only ~$50.

As an ex-motorcyclist I'm well aware that their registration is severely impacted by ACC levies. The high cost of registration together with insurance was a key factor in my discontinuation of two wheeled transport. My point was that as a transport sector that is already taxed to the point of being non-viable does it really make sense to extract even more money from motorcyclists for what is questionable reason?

On the subject of ACC this is likely to be the next imposition put onto EVs. EVs are currently paying the same ACC charge in their registration as petrol vehicles but obviously this isn't balanced out by way of the ACC component in petrol price. It is puzzling that EVs aren't charged the same ACC rate as diesel vehicles (who also don't pay ACC on their 'fuel') and the recent reports of ACC struggling to maintain economic viability may well see this situation rectified by an increase in EV registration cost.

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#3276594 29-Aug-2024 10:43

As suspected the rollout of RUCs for ICEVs is looking like happening from 2027, assuming the current government is still at the wheel beyond the next election. Wait and see I guess.

https://www.nzherald.co.nz/nz/politics/fuel-taxes-could-be-gone-by-2027-tolls-coming-for-new-roads/OWZP6SGW5VGMTOAW6AASQWNPIQ/

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#3276595 29-Aug-2024 10:51

HarmLessSolutions:

As suspected the rollout of RUCs for ICEVs is looking like happening from 2027, assuming the current government is still at the wheel beyond the next election. Wait and see I guess.

https://www.nzherald.co.nz/nz/politics/fuel-taxes-could-be-gone-by-2027-tolls-coming-for-new-roads/OWZP6SGW5VGMTOAW6AASQWNPIQ/

I would hope it would still come even if they were, god forbid, voted out.

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#3276706 29-Aug-2024 11:54

What a way to kick EVs when they’re down.

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#3276707 29-Aug-2024 12:08

exador: What a way to kick EVs when they’re down.

Totally out of character... 😆

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#3276711 29-Aug-2024 12:30

exador: What a way to kick EVs when they’re down.

Those roads need to be paid for - it's fair.

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#3276712 29-Aug-2024 12:33

johno1234:

exador: What a way to kick EVs when they’re down.

Those roads need to be paid for - it's fair.

I don't think @exador means EVs shouldn't pay. I think they mean that an at-best 3-year gap that makes certain classes of ICE more affordable than EVs rather than introducing RUCs for everyone at the same time, is kicking EVs while they're down.

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#3276715 29-Aug-2024 12:36

This interview answers a few of the questions on why and how. The only detail not considered was how to avoid a blanket RUC rate for petrol vehicles resulting in a windfall for high consumption vehicles because petrol would become cheaper (without FET) but no disincentive to then use more fuel per distance travelled.

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#3276719 29-Aug-2024 13:20

SaltyNZ:

I don't think @exador means EVs shouldn't pay. I think they mean that an at-best 3-year gap that makes certain classes of ICE more affordable than EVs rather than introducing RUCs for everyone at the same time, is kicking EVs while they're down.

I presume you are pointing the finger at Hybrids here?

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#3276720 29-Aug-2024 13:23

Yes

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#3276721 29-Aug-2024 13:29

JPNZ:

SaltyNZ:

I don't think @exador means EVs shouldn't pay. I think they mean that an at-best 3-year gap that makes certain classes of ICE more affordable than EVs rather than introducing RUCs for everyone at the same time, is kicking EVs while they're down.

I presume you are pointing the finger at Hybrids here?

Considering that EVs and PHEVs are now more than paying their way with RUCs hybrids have become the freeloaders in terms of paying their way for road usage.

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#3276723 29-Aug-2024 13:32

What I meant to imply is that currently there is a disincentive to run a gas guzzler due to petrol taxes. With the tax removed, EVs will be even less attractive.

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