Parliament has unanimously passed legislation enabling time-of-use charging schemes on New Zealand’s busiest roads, with Auckland set to be the first city targeted for congestion pricing.
The Land Transport Management (Time of Use Charging) Amendment Bill completed its third reading, allowing local authorities to partner with New Zealand Transport Agency (NZTA) on targeted schemes designed to reduce gridlock and improve freight flow.
Transport Minister Chris Bishop says the legislation addresses a significant economic drag, with Auckland congestion alone estimated to cost up to $2.6 billion by next year.
“Sitting in traffic wastes time, costs money, and drags down productivity,” Bishop says. “Travel times in our major cities are up to 30% longer than in comparable Australian cities.”
The minister says time-of-use charging encourages people to travel at off-peak times or use alternative transport modes, benefiting everyone from parents on school runs to freight operators moving exports to ports.
Auckland first in line
The Government has signalled Auckland Council will be the first local authority it partners with, given Auckland’s importance to the national economy. Work between council and government officials is already underway.
Research from Auckland’s The Congestion Question project in 2020 found an effective time-of-use charging scheme could reduce peak-time congestion to levels typically seen during school holidays. The same study estimated such a scheme could generate between $21 million and $261 million per year in gross revenue, depending on design and implementation.
The legislation is expected to integrate with future Road User Charges schemes, potentially enabling charging for vehicles passing through key bottlenecks like Auckland’s Spaghetti Junction.
International success
Bishop pointed to New York’s Manhattan congestion pricing scheme as proof the approach works. Since launching in January 2025, the scheme has delivered measurable results including traffic delays down around 25%, average peak-hour speeds improved by roughly 5–10%, and travel times reduced by 20–30% on key corridors.
The New York programme is projected to generate about US$500 million in net revenue for 2025, supporting major public transport infrastructure investment.
“Time of use charging has been talked about in New Zealand for years and now we’re getting on with it,” Bishop says. “I am really pleased that the legislation to allow the establishment of time-of-use charging schemes passed Parliament unanimously.”
The Transport Minister thanked submitters who provided feedback during the Select Committee phase, saying their input helped strengthen the bill and will ensure authorities are well equipped to develop robust schemes.
The legislation delivers a National-ACT coalition commitment and represents a key milestone in the Government’s 2025 Q4 Action Plan.
