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Section 3: Revenue
The Statement of intent (as well as government priorities for transport) is underpinned by modelling assumptions around the NLTF revenue flows and licensing and registration transaction volumes, and several others. Changes to these assumptions and revenue flows (due to unexpected changes in consumption patterns, fees and compliance rates) may require the NZTA to adjust levels of expenditure, which may also affect levels of service and delivery milestones.
The Statement of intent (as well as government priorities for transport) is underpinned by modelling assumptions around the NLTF revenue flows and licensing and registration transaction volumes, and several others. Changes to these assumptions and revenue flows (due to unexpected changes in consumption patterns, fees and compliance rates) may require the NZTA to adjust levels of expenditure, which may also affect levels of service and delivery milestones.
The NZTA has three primary revenue sources:
- The National Land Transport Fund (NLTF), which receives contributions from fuel excise duty (FED), road user charges (RUC) and motor vehicle registrations (MVR).
- Revenue from third parties, primarily sourced from land transport user fees, charges and licensing.
- Revenue from the crown for specific projects.
The revenue from the crown is generally via specific appropriations for particular projects or activities supported by the crown. Funding is usually limited to set amounts and for set time periods. Examples of this was the government's stimulus package for state highways, funding for rebuilding Christchurch and SuperGold card.
The size of the revenue flows is linked to specific consumption volumes and payment patterns, government decisions around individual fees, and various compliance rates. These assumptions are set out in the statement of forecast financial performance.
We expect that the existing key revenue sources of FED and RUC will continue to provide the majority of funding for the NZTA outputs in the near future. The forecast contribution of the different revenue sources to the NLTF for the 2012–15 period is shown below.
* Contains government contribution prior to 2008/09.
The new Road User Charges Act, which comes into effect on 1 August 2012, represents the first major change to the road user charges system since 1977. The new regime is expected to enhance road user charges revenue compliance, reduce compliance costs for road users and simplify the administration of the road user charges system.
Over the next 10 years we expect growth in revenue derived from these two key sources (FED and RUC) to continue to reflect the performance of the New Zealand economy, despite expected vehicle fuel efficiency gains and growth in the number of vehicles on our roads that are powered by other means. At the same time the demand for funding is expected to increase as the NZTA builds and maintains the transport infrastructure and services necessary to support a thriving New Zealand.
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* Contains government contribution prior to 2008/09.
The new Road User Charges Act, which comes into effect on 1 August 2012, represents the first major change to the road user charges system since 1977. The new regime is expected to enhance road user charges revenue compliance, reduce compliance costs for road users and simplify the administration of the road user charges system.
Over the next 10 years we expect growth in revenue derived from these two key sources (FED and RUC) to continue to reflect the performance of the New Zealand economy, despite expected vehicle fuel efficiency gains and growth in the number of vehicles on our roads that are powered by other means. At the same time the demand for funding is expected to increase as the NZTA builds and maintains the transport infrastructure and services necessary to support a thriving New Zealand.
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