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If you run a ute, van, or light truck for work, big changes are coming to how you pay for New Zealand’s roads. The Government has confirmed it’s moving away from petrol excise at the pump and towards electronic Road User Charges (RUC) for all light vehicles, not just diesel and EVs. The shift is designed to be simpler, fairer, and more transparent, with a rollout that starts by modernising the current system and then expanding it to everyone.

What’s changing (in plain English)

• All light vehicles will move to RUC: Today, diesel and most EVs pay RUC; petrol vehicles mostly pay through fuel tax. Under the plan, every light vehicle, petrol, hybrid, diesel, and electric will pay by distance and vehicle weight via electronic RUC. Timing requires new legislation and tech, but the direction is set.
• Paper labels go digital: You won’t have to carry or display a RUC licence on the windscreen. Records can be digital, and a wider range of in-vehicle or plug-in devices will be allowed to track distance.
• Heavy EV timeline clarified: Heavy electric vehicles over 3,500 kg start paying RUC from 1 July 2027 (the exemption has been extended to that date).
• Full transition timing: The Minister expects to pass the main legislation in 2026. A date for light-vehicle transition has not been set yet, meaning there’s time to prepare.

What this means for construction businesses

1) Cost will follow the way you actually use your vehicles

What you pay will be based on kilometres travelled and vehicle weight, not how much petrol you buy. For firms with utes and vans logging serious site-to-site kilometres, it makes budgeting more predictable. Heavier setups will pay more per km, as they do now under RUC.

2) Admin gets easier (finally)

No more paper labels, fewer trips to buy licences, and eRUC devices you can install once and forget.

This is where our partnership with BONNET comes in. BONNET’s fleet management platform makes it simple to track kilometres, manage RUC, and get clear reporting across your vehicles, saving you admin time and helping you stay compliant. And what’s even better is that you get your first 2 vehicles free!

3) Cleaner integration with your fleet tools

Because the new system opens the door to more electronic devices, you’ll likely be able to connect RUC with your existing GPS/telematics. With BONNET, you can integrate RUC data with your wider fleet info, fuel, servicing, and driver activity all in one place. That means less double-handling and better oversight for site managers.

4) EVs and hybrids in the mix

If you’re trialling electric vans or plug-in hybrids, note that everyone will ultimately be on RUC. For heavy EVs, the paid RUC start date is 1 July 2027.

Practical next steps for site managers and business owners

1. Audit your fleet usage now
   Pull monthly kilometres per vehicle (ute, van, light truck). With BONNET, you can automatically capture and report this data without spreadsheets, giving you a head start on forecasting RUC under the new system.
2. Decide your eRUC setup
   Shortlist providers that fit your needs. Our partnership with BONNET means you’ll have access to a platform that’s already set up for RUCs, it also allows you to track WOF, REGO and service tracking and H&S vehicle checklists in one powerful NZTA-linked system.
3. Tidy up odometer and driver processes
   As enforcement modernises, clean digital records will matter. BONNET’s system makes this easy by pulling mileage data straight from the vehicle, so your team doesn’t need to enter it manually. Even if your vehicles don’t have a GPS to track mileage, BONNET can, once the odometer has been entered into the app, send you reminders on when it predicts you will need to do your next RUC or service.
4. Re-price mileage and job rates
   Once RUC replaces petrol tax for light vehicles, your costs shift to per-km. With BONNET’s reporting tools, you can track true vehicle running costs per job and adjust your charge-out rates with confidence.
5. Plan your next vehicle purchase
   With weight-based per-km charges, the right spec (tow ratings, tray setups, canopy vs. ladder rack) can influence your per-km costs and productivity. If you’re considering EVs, factor in the 1 July 2027 heavy-EV RUC start and watch for updates on light vehicles.

Bottom line for the building trade

The shift to electronic RUC is about making costs clearer and admin lighter. With our partnership with BONNET, you’ll be in the best position for automating the admin, keeping your records clean, and giving you insights to run your fleet smarter. Start planning now, and when the change lands, your team will be ready.

Still got questions? Join our live Q&A session on the 9th of September