Regional Fuel Tax 2021 Variation

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Overview

In 2018, Auckland Council established a Regional Fuel Tax (RFT) Scheme as a key funding source for investment in Auckland’s transport network.

We are now proposing some changes to details of the scheme.

We are proposing to make some changes to details of the transport projects funded by the RFT Scheme (project descriptions, timings and funding allocations).

We are not proposing to change the amount of tax you will pay or the geographic area that the tax applies to.

Please read the full proposal before providing your feedback.

You can submit your feedback on the proposed changes to the Regional Fuel Tax Scheme from Monday 29 March - Sunday 2 May 2021.

Why are we proposing changes to the RFT Scheme?

There are two reasons we are proposing these changes:

  • Central government funding: Central government recently committed to provide direct funding for some of the projects that the RFT Scheme was initially intended to fund. This means RFT funding is no longer needed for those projects, and the RFT Scheme needs to be updated to reflect this.

  • Alignment with Auckland Transport Alignment Project (ATAP): Following recent reviews of the ATAP, Auckland Transport is currently proposing changes to some of Auckland’s transport projects (through Auckland’s Regional Land Transport Plan). Some of these projects are currently funded by Council’s RFT Scheme. If Auckland Transport’s proposed changes are adopted, this will mean the transport project details recorded in Council’s RFT Scheme are no longer accurate. The RFT Scheme will need to be updated to reflect these changes.

What is the Regional Fuel Tax Scheme currently in place (since 2018)?

The tax itself collects 10 cents per litre (plus GST) and applies to sales of petrol and diesel by retailers within the boundaries of Auckland Council (excluding Aotea Great Barrier Island) from 1 July 2018 to 30 June 2028. The revenue from the scheme is expected to be $150 million per annum for a total of $1.5 billion across the ten-year period, to enable over $4 billion of additional investment.

For more information, you can read the full scheme online.

How does this relate to Auckland Transport’s consultation on the Regional Land Transport Plan?

  • What is the Regional Land Transport Plan? This is the overall transport investment plan for Auckland, which sets out transport projects to be carried out over the next ten years. Auckland Transport (not Council) has responsibility for this. You can watch an explainer video on Auckland Transport's Plan.

  • What is the link between the RFT Scheme and the Plan? Council’s RFT Scheme funds some of the projects identified in the Plan.

  • Combined consultation: Auckland Transport is currently consulting on some proposed changes to the Plan. Because the Plan and the RFT Scheme are so closely connected, Council and Auckland Transport have decided to use a combined feedback form/carry out combined community events.

    Although the consultation process is combined, it is important to note that the two processes (RFT and Plan) are separate – each has its own purpose, scope and legislative framework. Following consultation, Auckland Transport will make decisions on changes to the Plan, and Council on changes to the RFT Scheme.

What is the alternative to proposing these changes?

Without this proposal, Council would be funding outdated projects with different budgets originally identified in the 2018 version of the Scheme.

This means that the only reasonably practicable option is for Council to put forward this proposal.

The result is the ability to fund the transport budget at the appropriate level for the growth and economy of Auckland.

What will happen once consultation closes?

Once consultation closes, Auckland Transport and Auckland Council will collate and analyse the feedback received . Council’s Governing Body will then make a final decision whether to adopt the proposal (potentially with amendments) to send on to the Ministers of Transport and Finance.

The Ministers will then decide whether or not to send the proposal onto the Governor-General, to give the proposed changes legal effect by making an Order in Council.

What is the legal basis for the RFT Scheme?

Sections 65A – 65ZL of the Land Transport Management Act 2003 set out the legislative framework for the Regional Fuel Tax Scheme.


By using this platform, you have agreed to Auckland Council’s Privacy Policy. Your feedback will be published in Auckland Council reports and online. All other personal details will remain private. For more information, see Is my privacy protected?

Overview

In 2018, Auckland Council established a Regional Fuel Tax (RFT) Scheme as a key funding source for investment in Auckland’s transport network.

We are now proposing some changes to details of the scheme.

We are proposing to make some changes to details of the transport projects funded by the RFT Scheme (project descriptions, timings and funding allocations).

We are not proposing to change the amount of tax you will pay or the geographic area that the tax applies to.

Please read the full proposal before providing your feedback.

You can submit your feedback on the proposed changes to the Regional Fuel Tax Scheme from Monday 29 March - Sunday 2 May 2021.

Why are we proposing changes to the RFT Scheme?

There are two reasons we are proposing these changes:

  • Central government funding: Central government recently committed to provide direct funding for some of the projects that the RFT Scheme was initially intended to fund. This means RFT funding is no longer needed for those projects, and the RFT Scheme needs to be updated to reflect this.

  • Alignment with Auckland Transport Alignment Project (ATAP): Following recent reviews of the ATAP, Auckland Transport is currently proposing changes to some of Auckland’s transport projects (through Auckland’s Regional Land Transport Plan). Some of these projects are currently funded by Council’s RFT Scheme. If Auckland Transport’s proposed changes are adopted, this will mean the transport project details recorded in Council’s RFT Scheme are no longer accurate. The RFT Scheme will need to be updated to reflect these changes.

What is the Regional Fuel Tax Scheme currently in place (since 2018)?

The tax itself collects 10 cents per litre (plus GST) and applies to sales of petrol and diesel by retailers within the boundaries of Auckland Council (excluding Aotea Great Barrier Island) from 1 July 2018 to 30 June 2028. The revenue from the scheme is expected to be $150 million per annum for a total of $1.5 billion across the ten-year period, to enable over $4 billion of additional investment.

For more information, you can read the full scheme online.

How does this relate to Auckland Transport’s consultation on the Regional Land Transport Plan?

  • What is the Regional Land Transport Plan? This is the overall transport investment plan for Auckland, which sets out transport projects to be carried out over the next ten years. Auckland Transport (not Council) has responsibility for this. You can watch an explainer video on Auckland Transport's Plan.

  • What is the link between the RFT Scheme and the Plan? Council’s RFT Scheme funds some of the projects identified in the Plan.

  • Combined consultation: Auckland Transport is currently consulting on some proposed changes to the Plan. Because the Plan and the RFT Scheme are so closely connected, Council and Auckland Transport have decided to use a combined feedback form/carry out combined community events.

    Although the consultation process is combined, it is important to note that the two processes (RFT and Plan) are separate – each has its own purpose, scope and legislative framework. Following consultation, Auckland Transport will make decisions on changes to the Plan, and Council on changes to the RFT Scheme.

What is the alternative to proposing these changes?

Without this proposal, Council would be funding outdated projects with different budgets originally identified in the 2018 version of the Scheme.

This means that the only reasonably practicable option is for Council to put forward this proposal.

The result is the ability to fund the transport budget at the appropriate level for the growth and economy of Auckland.

What will happen once consultation closes?

Once consultation closes, Auckland Transport and Auckland Council will collate and analyse the feedback received . Council’s Governing Body will then make a final decision whether to adopt the proposal (potentially with amendments) to send on to the Ministers of Transport and Finance.

The Ministers will then decide whether or not to send the proposal onto the Governor-General, to give the proposed changes legal effect by making an Order in Council.

What is the legal basis for the RFT Scheme?

Sections 65A – 65ZL of the Land Transport Management Act 2003 set out the legislative framework for the Regional Fuel Tax Scheme.


By using this platform, you have agreed to Auckland Council’s Privacy Policy. Your feedback will be published in Auckland Council reports and online. All other personal details will remain private. For more information, see Is my privacy protected?

Your question will be sent to the project team who will aim to respond within 5 business days.  

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    If central government has provided direct funding for the projects that the RFT was expected to fund, then what is the total of all RFT revenues collected, and what is the current balance of those funds. Have any of the collected RFT been committed projects, and what are they?

    alleenz asked 14 days ago

    Hi,

    Thank you for your question.

    The current amount of RFT revenue collected as of 31 December 2020 is $376 million. Since its introduction, Auckland Transport has spent $346 million on designated projects, which was funded by $162 million of RFT, $135 million of Waka Kotahi NZ Transport Agency subsidies and $49 million of development contributions. Unspent funds at any stage in the RFT project programmes are held in reserve. Central government has agreed to fund projects such as Mill Road, Penlink and some of the downtown ferry terminal and Puhinui. As a result of this and other changes, the RFT scheme’s details are being revised. Please refer to the proposal for additional details.

    Thanks.