An Auto Media Group publication Sunday 8 November 2026
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Govt pushes ahead with driver licensing reform and RUCs in Q2 action plan

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The Government will begin public consultation on reforms to New Zealand’s driver licensing system and make key decisions on the future of a fleetwide Road User Charges (RUC) system as part of its new quarterly action plan.

The Q2 plan, covering the April to June period, outlines 38 new actions aimed at driving economic growth and delivering on coalition agreements. Among them are two moves directly impacting motorists and the transport sector: consultation on proposed changes to the driver licensing framework and final Cabinet decisions on how to transition all vehicle types to RUC.

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Both developments are being closely watched by the road transport and automotive sectors, which have called for modernisation and greater clarity.

In 2019, the New Zealand Transport Agency consulted on a number of improvements to the driver licensing system that would be made through the Land Transport (Driver Licensing Rule) 1999. Options on how to progress this work are still being considered.

Prime Minister Christopher Luxon says the Government’s plan “lays out more of the actions we will take to rebuild the economy, reduce the cost of living, and make Kiwis better off”.

“We know the cost of living is still tough but with GDP rising, interest rates falling, and inflation back in its box, our plan is working, and we must push ahead on going for economic growth,” he says.

The new Q2 initiatives build on achievements from the Government’s first 100 days in office, including the first reading of the Land Transport Management (Time of Use Charging) Bill and the passage of legislation enabling roadside drug testing.

Time-of-use charging is a key part of wider reforms expected to reshape the way motorists pay for their use of the road network. Cabinet has already agreed to a legislative framework focused on seven key components that will enable local councils to propose time of use schemes (a form of congestion charging) on their networks.

The Q2 plan also touches on trade, investment and infrastructure, with Luxon highlighting steps to ratify the New Zealand-UAE trade deal, boost tourism, and progress the 30-year National Infrastructure Plan.

“A bigger economy means more jobs, higher incomes, and more money in people’s back pockets. It also means we can afford the health and education services Kiwis deserve,” he says.

The Government completed 37 out of 40 actions from its Q1 plan. Cabinet papers on regulatory standards and health infrastructure were delayed but remain in progress.

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