James Smith, GM Policy and Advocacy, National Road Carriers.
Recently there has been posts on social media and comments in the media calling for people to stop paying RUC.
NRC does not support this and for very good reasons members should refrain from taking this step as a way to lower cost.
Road User Charges or RUC is a charge paid by all vehicles that exceed 3500kg in mass or that use a fuel that is not taxed at source.
Revenue collected from fuel excise duty (FED), road user charges (RUC), vehicle and driver registration and licensing, state highway property disposal and leasing and road tolling is credited to the National Land Transport Fund (NLTF). The NLTF is used to fund National Land Transport Programme which is set every three years. Current NLTP was set in 2024 costing $32.9 billion from 2024-2027. In addition to the dedicated revenue streams there are several Crown grants and loans needed to get to the $32.9 billion.
There is no link between RUC and the price of diesel. Any reduction in RUC would result in a reduction in the NLTP or an increase to the already high Crown loan that NZTA is paying off for the last RUC discount.
RUC discounts do nothing to support the many businesses that use diesel for non on road activity.
Members should contact one of the team if they need assistance with what can be done to minimise or mitigate the cost increases on their business. There are no generic answers and we urge all members to ensure the steps they take are evidence based and specific to their business.
Failure to pay RUC is treated seriously by the Crown and are considered to be debts due to the Crown with the RUC collector (NZTA) authorised to recover these amounts through the courts.
As a business the consequences in participating in any campaign to not pay RUC could be very dire indeed.
Fines for Specific RUC Offences
Failure to comply with RUC requirements can result in significant fines upon conviction:
- Failure to Produce Licence: Failing to produce a RUC licence immediately on demand by an enforcement officer carries a fine of up to $15,000 for a body corporate.
- Providing Incorrect Information: Providing information known to be incorrect in an application for a RUC licence can lead to a fine of up to $75,000 (body corporate).
- Record-Keeping Failures: Transport service licence holders who fail to make or retain required RUC records can be fined up to $100,000 (body corporate). Knowingly producing false RUC records carries a fine of up to 75,000 (body corporate).
- Distance Recorder Violations: Operating a vehicle with a tampered or inaccurate distance recorder carries a maximum fine of $75,000 (body corporate).
Infringement Fees
Regulations can prescribe infringement fees for RUC offences:
- For an offence against Section 10(2) (operating a heavy RUC vehicle where the distance recorder exceeds the licence maximum by more than 500 km), the fee may not exceed $3,000.
- For other RUC infringement offences, the fee may not exceed $2,000 for a body corporate
Late Payment Penalties
If road user charges for a licence remain unpaid, the Act imposes the following penalties:
- Initial Late Payment: If charges are unpaid three months after they were due, a penalty equal to 10% of the unpaid amount is added.
- Failure to Pay After Assessment: If the RUC collector issues an assessment for unpaid charges under Section 53:
- An amount remaining unpaid two months after the assessment date incurs a 10% penalty.
- An amount remaining unpaid three months after the assessment date incurs a further 10% penalty (on top of the previous 10% penalty)
So should you hear any member express any thought that they may decide not to pay RUC as a form of protest against higher fuel prices, please advise them against taking this course of action. Instead encourage them to contact one of the NRC team to discuss what steps can be taken.
It is VERY hard to defend an operator against RUC offence allegations as they are deemed guilty unless proved innocent. Anyone that has been through a RUC audit can attest that it is not an enjoyable experience.
NZTA can and will liquidate a company to recover RUC debt.
