Regional Fuel Tax Regional Fuel Tax

A regional fuel tax for Auckland set at 10 cents per litre (plus GST) was introduced on 1 July 2018 and ended on 30 June 2024.


About the regional fuel tax

A regional fuel tax (RFT) was implemented in Auckland on 1 July 2018 to fund transport projects that would otherwise be delayed or not funded. It ended on 30 June 2024, after the Coalition Government passed legislation in March 2024.

Read more about the RFT in Auckland, established by the Land Transport Management (Regional Fuel Tax Scheme – Auckland) Order 2018, updated by the Amendment Order 2023 and subsequent Repeal legislation 2024.


How it worked

A regional fuel tax of 10 cents per litre (plus GST) applied to sales of petrol and diesel within the boundaries of Auckland Council (excluding Great Barrier Island).

Rebates

RFT was to be applied only where fuel was used on the road. Where fuel was used for specific non-road purposes, a rebate could be claimed by the end user of the fuel until 31 October 2024.

Rebates for the regional fuel tax were administered by the NZ Transport Agency. To find out more about eligibility and how to claim a rebate before 31 October 2024, visit the NZ Transport Agency’s website.

The regional fuel tax was able to support:

  • more public transport options
  • improved road safety
  • extended walking and cycling networks across Auckland
  • improvement of some major arterial roads
  • key growth areas with transport infrastructure.

Projects funded by the RFT

In May 2018, Auckland Council carried out a consultation on projects proposed to be funded by the regional fuel tax. Further consultation on changes to the original scheme was carried out in 2020. But in March 2024, with the repeal of RFT legislation, funding support for all projects other than Projects 4, 6 and 12 was revoked, effective 8 March 2024.

The following is a summary of the projects included in the approved proposal. Of these, only Projects 4, 6 and 12 may continue to receive RFT funding from 8 March 2024, until any remaining RFT reserve is used.

Project 1: Bus priority improvements (and associated walking and cycling safety improvements)

Improvements such as bus lanes are essential priority mechanisms that:

  • enhance overall road network usage
  • increase bus network reliability
  • improve bus travel times
  • reduce bus operating costs.

Until 29 February 2024, RFT allowed Auckland Transport to roll out a “whole of route” bus priority programme designed to deliver a step change in bus priority along selected Frequent Service Network routes. Improvements included:

  • new neighbourhood bus interchanges
  • double-decker bus mitigation work (to enable double-decker buses to operate on certain routes)
  • addressing accessibility deficiencies at public transport facilities
  • bus improvements at Sylvia Park.

Project 2: City centre bus infrastructure

Until 29 February 2024, RFT was invested in city centre bus improvements to support the increasing number of buses and passengers. Improvements included:

  • a new dedicated bus terminal on Lower Albert Street, for central city bus passengers to access northern services. The terminal offers users street-side boarding and departure points, weather-resistant shelters, and clearly displayed arrival and departure information.
  • Wellesley Street Bus Improvements. This project helps give access to the growing number of customers travelling into and within the midtown area of the city centre. The project provides bus facilities along the Wellesley Street corridor.

Project 3: Improving airport access

Auckland Airport and the surrounding area play an important part in the economy of Auckland and New Zealand. Initiatives to improve airport access partly funded by the RFT until the end of February 2024 included:

  • airport access public transport improvements – a range of medium-term capital improvements to support the provision of enhanced bus services to the airport precinct
  • Puhinui bus/rail interchange – a new interchange at Puhinui Station to provide a high-quality connection between the rail network and buses accessing Auckland International Airport.

Project 4: Eastern Busway

The Eastern Busway will improve transport options by making public transport, walking and cycling realistic and safe choices. Enabling improved connections between the area and the rest of Auckland, the project includes: 

  • the Eastern Busway from Panmure to Pakuranga
  • the Ti Rakau Drive busway, Pakuranga town centre bus station and the Reeves Road flyover
  • the Botany bus station
  • operational expenditure for additional bus services on the Eastern busway.

Find out more about the Eastern Busway

Project 5: Park-and-ride facilities

Park-and-ride facilities are an integral part of the public transport network, providing access to transport services. Until 29 February 2024, RFT enabled park-and-ride facilities in Silverdale and improvements to the existing park and ride and surrounds at Waiheke Island’s Matiatia transport interchange.

Project 6: Electric trains and stabling

Auckland’s rail network forms a key part of the city’s strategic public transport system and freight network. Strong growth in passenger rail boardings and rail freight are expected to continue.

Meeting this growing demand will require more trains on the rail network, increasing capacity, and improving network resilience and safety. Until any remaining reserve is used, RFT could continue to enable:

  • 23 more trains and the construction of facilities to house and maintain them
  • a new heavy maintenance facility
  • improvements to support new City Rail Link (CRL) stations and transfers between CRL stations and other public transport services.

Project 7: Ferry network improvements

The Downtown Ferry Terminal is one of the busiest public transport hubs in Auckland. RFT funding until 29 February 2024 allowed important terminal upgrades, including the redevelopment of the Ferry Basin, upgrading Piers 3 and 4, and the procurement of charging infrastructure for the upcoming electric ferries. 

Project 8: Road safety

The road safety project included safety engineering projects at high-risk locations to reduce deaths and serious injuries on Auckland’s roads. Until 29 February 2024, RFT helped enable:

  • critical safety projects across Auckland, including safer speed limits, rural road-safety improvements and the installation of red-light cameras
  • safety improvements to address high-risk corridors, intersections and speed-related deficiencies on rural and urban roads
  • the expansion of safer communities (including through the Community Safety Fund) and speed management to cover more of the network, including signage related to speed limit changes, traffic-calming measures, safety cameras and crossing safety improvements.

Project 9: Active transport

Improving walking and cycling infrastructure is a priority in transforming transport in Auckland. Providing quality, connected cycling routes and improved walking facilities will give Aucklanders more transport options.

Until 29 February 2024, RFT helped enable:

  • walking and cycling programmes with priority investment in Manukau and Māngere East
  • the Meadowbank-Kohimarama Connectivity Project
  • Tāmaki Drive and Ngapipi Road safety improvements
  • the City Centre Access for Everyone programme
  • a programme delivering lower-cost cycling and micro-mobility improvements, including pop-up protection projects to retrofit existing painted cycle lanes with appropriate safety barriers.

Project 10: Penlink

Penlink forms a vital transport link in North Auckland as more people begin living and working in Silverdale, Whangaparāoa and the Hibiscus Coast.

RFT supported planning and land acquisition work for the Penlink project, which was taken over by the NZ Upgrade Programme in 2020.

Find out more about Penlink

Project 11: Mill Road corridor

RFT supported initial planning and land acquisition work for the Mill Road corridor. The RFT programme no longer includes Mill Road.

Find out more about the Mill Road corridor

Project 12: Road corridor improvements

Until any remaining reserve is used, RFT could continue to provide funding for capital expenditure to support:

  • road corridor improvements on Lincoln Road and the Matakana Link Road
  • the Glenvar Road/East Coast Road intersection upgrade, Smales Road/Allens Road intersection upgrade and Lake Road improvements
  • capital expenditure on road seal extensions.

Project 13: Network capacity and performance improvements

This project focused on maximising the efficiency of the existing transport network through initiatives such as traffic signal optimisation, improving key congestion points, and using technology to monitor and actively manage the network in real time.

Project 14: Growth-related transport infrastructure

In the second half of the decade to June 2028, provisions were made for transport infrastructure to support expected growth in the south (Pukekohe, Paerata and Takanini), north (Silverdale, Dairy Flat, Wainui and Warkworth) and northwest (Kumeu, Redhills and Whenuapai).

For more information