Auckland Council agrees to Regional Fuel Tax for Auckland

2 MinutesBy NZ Trucking magazineMay 31, 2018

Auckland Council has agreed to implement a Regional Fuel Tax (RFT), of 11.5 cents per litre from July 1, unlocking more than $4 billion of critical investment in Auckland‘s transport network.

“This is a good day for Auckland,” says Mayor Phil Goff. “We‘ve agreed not only $1.5 billion in extra spending on our transport network, but unlocked more than $4 billion additional investment in transformative transport projects right across Auckland.

“This is investment that will benefit all of Auckland, increasing the provision of public transport, improving our roads, cycleways and walkways, and making Auckland less congested and safer.”

Goff says fixing transport in Auckland is a priority and that without the Regional Fuel Tax they would be able to do little more than fund the operation and renewal of the existing transport system and projects that have already been committed to.

“To raise the equivalent sum through rates would have resulted in an average rates increase of around 13 percent this year. Alternatively, to do nothing would see Auckland gridlocked in a short period of time.”

The Government and Auckland Council are also addressing congestion with $28 billion of transformative investment in the transport network.

“We cannot expect the rest of New Zealand to subsidise Auckland. The council has increased investment in our transport network to $12 billion over the next 10 years and Aucklanders will contribute their fair share through a regional fuel tax (RFT) at 10 cents per litre plus GST.”

The RFT proposal will now be submitted to the Government for approval and its introduction is conditional on legislation being passed with a targeted introduction of 1 July this year.