When did toll prices increase?

Toll prices increased from 12.01am on Saturday 1 July 2023. 

Why did toll prices increase?

Toll operating costs have increased by 10 cents since they were last reviewed in 2011 and timing for debt repayments needs adjusting. The toll price increase is in line with the cost increase.

What are the price changes? 

Toll road name Light vehicles (cars/motorcycles) Heavy vehicles (3500kg and over)
  Pricing until 1 July 2023 Pricing from 1 July 2023 Pricing until 1 July 2023 Pricing from 1 July 2023
Auckland Northern Gateway $2.40 $2.60 $4.80 $5.20
Tauranga Eastern Link SH2 $2.10 $2.30 $5.20 $5.60
Tauranga Takitimu Drive SH29 $1.90 $2.10 $5.00 $5.40

Are any other Waka Kotahi toll charges going up?

Customers who purchase prepay trips at service stations will be impacted by a service fee increase. Our service provider is increasing their transaction fee from $1.20 to $1.50.

All other charges remain unchanged.

Do toll prices increase each time the consumer price index (CPI) goes up?

No. Debt repayments are impacted by inflation, and this does contribute to a price increase, but a price increase only occurs at select times. The last price increase was in 2019.

What advertising is Waka Kotahi putting in place to publicise the increase in toll tariff?

In May, Waka Kotahi will share a media release and publish website updates. In the four weeks leading up to the price increase on 1 July 2023, various activities will take place, such as electronic signage at toll roads, emails to account holders, and notifications to key stakeholders.

Where does money from a toll go?

Most of the money goes towards debt repayment, with $0.80 going towards operating costs to run the tolling business, and a component is spent on GST.

For example: From a $2.60 toll, $1.46 goes towards debt repayment, $0.80 goes towards operating costs to run the tolling business and $0.34 goes to Inland Revenue as GST.

I have a toll road account. Do I need to do anything because of the toll change?

No. Since tolls are automatically debited to your account, they will be charged at the new rate from 1 July 2023. You may want to review your top up amount to ensure it is sufficient to cover your future travel requirements.

I have pre-purchased trips - will I be able to still use these?

Yes. If you have purchased trips via Pay & Go before 1 July 2023, you will still be able to use these on or after 1 July 2023.

I have pre-purchased trips - will I have to pay more when prices change?

No. For trips purchased prior to 1 July 2023, you won’t need to pay any more to make up the difference. The system will recognise that the trip has been paid for, as opposed to how much the trip costs.

Where are the toll roads?

There are three toll roads in New Zealand:

View a map of toll roads

How much is the toll?     

Toll prices vary by road and depend on the type of vehicle you are driving.

See the full list of prices

How long do I have to pay my toll?   

We ask you to pay your toll within five working days of travelling on a toll road.

If you don’t pay in this time, you may be sent a toll payment notice for each unpaid toll. There is an administration fee of $4.90 per notice issued. Avoid the extra charge by paying your toll before or immediately after using a toll road.

Find out more about ways to pay. Or, better still, open an account(external link)

How is the toll collected?

The toll is collected through an electronic tolling system. This system uses cameras and sensors with optical character recognition technology to capture an image of a vehicle’s registration plate and assign the correct toll price, based on the size of the vehicle. Internationally, the trend of toll roads is to move to electronic collection.

View the 3D tolling animation to see how electronic tolling works(external link)

What if I don’t want to pay a toll?

There are free alternatives routes available if you choose not to travel on a toll road. There are signs letting you know the alternative routes. Look for signs with this symbol (Free route pic)

View the alternative routes

If you inadvertently travel on a toll road you are required to pay the toll.

I have received a toll payment notice but I wasn’t driving, what do I do?

If a vehicle registered to you travels on a toll road and payment isn’t received within five working days, you may receive a toll payment notice from us. If you weren’t the driver of the vehicle, you are able to transfer liability to the driver by completing a Statutory Declaration form.

Statutory Declaration form [PDF, 186 KB]

The minimum information we need for the new driver is their full name and postal address. If this information is not included, we will be unable to process your form.

You can return this form to us at tollroad@nzta.govt.nz or to the postal address below:

Waka Kotahi - Tolling
Private Bag 11777
Palmerston North 4442

Please note, we must receive this form within 28 days of the issue date stated on your toll payment notice.

I have received a Toll Payment Notice but my vehicle did not travel on a toll road. What should I do?

Please contact us with the registration plate number and reference number on your notice so we can look into this for you.

What happens if I sell my vehicle or buy a new one?

Pay & Go tolls

Pre-purchased tolls will not transfer from your old to your new vehicle. If you have pre-paid tolls you can get a refund of these tolls:

View or refund unused tolls (external link)

Account

If you have a toll account, you need to update your registration plate details immediately. These will not update automatically.

Log into your account to update your listed vehicles(external link)

If you buy or sell a vehicle, you must also ensure you’ve updated the registered person details in the Motor Vehicle Register:

Sold or disposed of a vehicle(external link)

How many times have tolls been increased since the three roads were opened?

Since the opening date, the tolls have been increased 4 times for Northern Gateway, twice for Tauranga Eastern Link and twice for Takitimu Drive.  The table below shows the dates of increases and the corresponding toll tariffs:

Date

Northern Gateway

Tauranga Eastern Link

Takitimu Drive

Light vehicles (car/motorcycle)

Heavy vehicles (3500kg and over)

Light vehicles (car/motorcycle)

Heavy vehicles (3500kg and over)

Light vehicle (car/motorcycle)

Heavy vehicles (3500kg and over)

Jan-09

$2.00

$4.00

 

 

 

 

Mar-12

$2.20

$4.40

 

 

 

 

Aug-15

$2.30

$4.70

$2.00

$5.00

$1.80

$4.80

Mar-19

$2.40

$4.80

$2.10

$5.20

$1.90

$5.00

Jul-23

$2.60

$5.20

$2.30

$5.60

$2.10

$5.40

Takitimu Drive: Waka Kotahi took over the road on 30 June 2015 and it became a State Highway two months later. Was there a change in toll price?

Yes, there was a reduction in the toll tariffs from $2.00 to $1.80 (light vehicles/cars) and $5.00 to $4.80 (heavy vehicles/bus) when Waka Kotahi took over the Route K (and renamed Takitimu Drive) as part of the State Highway networks. Below is the summary of the toll tariffs:

Takitimu Drive

Prior to becoming SH

From 1 August 2015

From 1 March 2019

From 1 July 2023

Light vehicles (car/motorcycle)

$2.00

$1.80

$1.90

$2.10

Heavy vehicles (3500kg and over)

$5.00

$4.80

$5.00

$5.40

What is the legal basis of a toll increase?

An Order In Council, the legal document covering a specific toll road, allows for the tolls to be annually adjusted in line with increases in the Consumer Price Index. To date, Waka Kotahi has increased the tolls about every three years instead of annually, which has reduced the number of increases customers have been exposed to, and reduced the costs involved in having a toll increase, such as signage changes etc.

What does a toll tariff pay for?

A toll fee pays part of three separate components:

  1. Goods and Service Tax (GST).
  2. Toll revenue – the amount designed for debt payment (principal and interest) in the case of Northern Gateway and Tauranga Eastern Link toll roads. In the case of Takitimu Drive, the amount designated is to recoup the $65m paid to Tauranga City Council plus opportunity costs.
  3. Toll operating revenue – the amount retained by Waka Kotahi to operate the toll business.  This pays for the personnel costs, transaction charges (i.e., bank charges), depreciation, information technology support, maintenance and upgrades and other operating costs.

What is the breakdown of the current toll tariff?

Breakdown

Northern Gateway

Tauranga Eastern Link

Takitimu Drive

Light vehicles, including motorcycles

Heavy vehicles (3500kg and over)

Light vehicles, including motorcycles

Heavy vehicles (3500kg and over)

Light vehicles, including motorcycles

Heavy vehicles (3500kg and over)

Toll revenue

$1.46

$3.72

$1.20 $4.07 $1.03 $3.90

Toll operating revenue

$0.80

$0.80

$0.80 $0.80 $0.80 $0.80

GST

$0.34

$0.68

$0.30 $0.73 $0.27 $0.70

Toll tariff

$2.60

$5.20

$2.30

$5.60

$2.10

$5.40

How many cars, motorbikes and heavy vehicles have travelled on the Auckland Northern Gateway, Tauranga Eastern Link and Tauranga Takitimu Drive each year since opening?

Northern Gateway

Financial Year

Total number of light vehicles

Total number of heavy vehicles

Total

2008/09

1,793,476

150,610

1,944,086

2009/10

4,536,212

381,688

4,917,900

2010/11

4,726,063

390,070

5,116,133

2011/12

4,802,165

383,617

5,185,782

2012/13

4,989,792

395,434

5,385,226

2013/14

5,315,724

424,960

5,740,684

2014/15

5,614,922

442,556

6,057,478

2015/16

6,156,480

472,759

6,629,239

2016/17

6,526,596

514,170

7,040,766

2017/18

6,825,404

563,290

7,388,694

2018/19

6,944,115

574,520

7,518,635

2019/20

6,228,256

540,516

6,768,772

2020/21

6,824,655

611,227

7,435,882

2021/22

5,588,754

596,784

6,185,538

2022/23

6,503,545

575,264

7,078,809

Tauranga Eastern Link

Financial Year

Total number of light vehicles

Total number of heavy vehicles

Total

2015/16

2,273,059

354,044

2,627,103

2016/17

2,950,382

420,492

3,370,874

2017/18

3,271,597

481,900

3,753,497

2018/19

3,462,965

512,611

3,975,576

2019/20

3,258,203

454,190

3,712,393

2020/21

3,705,236

478,154

4,183,390

2021/22

3,398,327

460,564

3,858,891

2022/23

3,615,802

503,890

4,119,692

Takitimu Drive

Financial Year

Total number of light vehicles

Total number of heavy vehicles

Total

2015/16

2,054,469

456,817

2,511,286

2016/17

2,789,914

587,769

3,377,683

2017/18

3,202,873

657,540

3,860,413

2018/19

3,660,663

704,119

4,364,782

2019/20

3,484,751

664,004

4,148,755

2020/21

4,124,228

738,616

4,862,844

2021/22

3,843,520

765,097

4,608,617

2022/23

4,266,007

786,729

5,052,736

What was the final construction cost for each of the following roads: Northern Gateway, Tauranga Eastern Link and Tauranga Takitimu Drive?

Total construction costs were funded from the National Land Transport Fund and supplemented by the use of debt facility from the Crown.

 

Construction costs ($'M)

NLTF funding ($'M)

Debt component ($'M)

Northern Gateway

$375.7

$217.7

$158.0

Tauranga Eastern Link

$456.2

$349.2

$107.0

Takitimu Drive

Takitimu Drive toll road was constructed by the Tauranga City Council in 2003 for a cost of $44.7 million. It was purchased by Waka Kotahi in 2015 for $65 million.

Do taxpayers pay for toll roads?

The total construction costs were funded from the National Land Transport Fund and supplemented by the use of debt.

For example, in the case of the Northern Gateway Toll Road, to advance the project and pay for the $375.7 million construction costs, the National Land Transport Fund funding of $217.7 million was supplemented by use of a $158 million debt facility from the Crown.

The National Land Transport Fund is a fully ring-fenced transport fund made up of fuel excise duty, road user charges, a portion of the annual vehicle licensing fee and income from the sale and lease of state highway property.

All revenue collected from transport users is dedicated to investment in land transport. 

The toll revenue collected is for the repayment of the debt and related interest costs, as well as the operating costs of the tolling systems. The toll applied to the toll road will be removed once the associated debt is repaid.

How much in total revenue has already been collected on the three toll roads since they opened?

The revenue disclosed below is on a cash rather than an accruals basis therefore it can differ from that disclosed in the annual report. The differences are not material.

Northern Gateway Toll Road ($'000 and excluding GST)

Financial Year

Toll revenue *

Toll operating revenue

Total

Amount designated to repay the debt (principal and interest)

(Amount retained by the NZTA to operate toll business)

2008/09

$2,312

$1,180

$3,492

2009/10

$6,060

$3,085

$9,145

2010/11

$6,150

$3,216

$9,366

2011/12

$6,415

$3,371

$9,786

2012/13

$7,115

$3,664

$10,779

2013/14

$7,648

$3,928

$11,576

2014/15

$8,056

$4,135

$12,191

2015/16

$9,108

$4,482

$13,590

2016/17

$10,030

$4,804

$14,834

2017/18

$10,541

$5,025

$15,566

2018/19

$10,914

$5,108

$16,022

2019/20

$10,224

$4,595

$14,819

2020/21

$11,289

$5,057

$16,347

2021/22

$9,558

$4,203

$13,761

2022/23

$10,728

$4,812

$15,540

Tauranga Eastern Link Toll Road ($'000 and excluding GST)

Financial Year

Toll revenue *

Toll operating revenue

Total

Amount designated to repay the debt (principal and interest)

(Amount retained by the NZTA to operate toll business)

2015/16

$3,507

$1,743

$5,250

2016/17

$4,494

$2,288

$6,782

2017/18

$5,043

$2,546

$7,589

2018/19

$5,463

$2,693

$8,156

2019/20

$5,252

$2,508

$7,760

2020/21

$5,834

$2,829

$8,663

2021/22

$5,417

$2,602

$8,019

2022/23

$5,836

$2,785

$8,621

Takitimu Drive Toll Road ($'000 and excluding GST)

Financial Year

Toll revenue *

Toll operating revenue

Total

(Amount designated to recoup the investment)

(Amount retained by the NZTA to operate toll business)

2015/16

$3,267

$1,687

$4,954

2016/17

$4,394

$2,317

$6,711

2017/18

$4,996

$2,647

$7,643

2018/19

$5,680

$2,987

$8,667

2019/20

$5,651

$2,842

$8,493

2020/21

$6,528

$3,340

$9,868

2021/22

$6,345

$3,158

$9,503

2022/23

$6,732

$3,541

$10,272

*  including interest earned

Where is the money collected from the toll revenues being spent?

The toll revenue collected is for the repayment of debt and related interest costs.

The toll operating revenues pay for personnel costs, transaction charges (i.e., bank charges), depreciation, information technology support, maintenance and upgrades and other operating costs.

Other than financing the cost of construction, what else have the toll road payments been used on?

The toll revenue collected is for the repayment of the debt and related interest costs, as well as for operating costs of the tolling systems. It does not fund the ongoing maintenance and operational costs of the road itself, which are funded from the National Land Transport Fund under the State Highways Maintenance activity class.

How much has been spent on the toll roads since they opened?

Waka Kotahi does not record maintenance costs specific to the toll roads and maintenance contracts are network-wide rather than specifically road-based.  The toll revenue collected does not fund the maintenance and operational costs of the roads themselves. These are funded from the National Land Transport Fund under the State Highways Maintenance activity class.

How much debt is left to pay on each of the three toll roads?

The following table provides the information:   

 

30 Jun 2019

30 Jun 2020

30 Jun 2021

30 Jun 2022

Northern Gateway

$217.2 million

$213.1 million

$207.8 million

$204 million

Tauranga Eastern Link

$107.0 million

$107.0 million

$107.0 million

$107 million

Takitimu Drive

Takitimu Drive was purchased outright from the National Land Transport Fund (NLTF) in 2015. The $65 million purchase price is not, therefore, accounted for as a ‘debt’.

The NLTF exists to invest in the land transport system to maintain or improve levels of service. The $65 million payment, being a financial transaction only, does not itself provide transport benefits. Accordingly, the Waka Kotahi board determined that $65 million, plus its opportunity costs, would be recovered from tolls on the road to be invested to generate transport benefits over time.

This means that the effective value of the $65 million is being recovered via tolls to make sure that is available to the fund to provide transport benefits.

The amount remaining to be recovered at 30 June 2022 is $52 million.

What is the estimated date for each project to be fully paid off and the toll removed?

Based on: 1 July tariff increases, traffic volume assumptions, 2% per annum CPI NG TR TEL TR TD TR
By 2039 By 2040 By 2031

The repayment dates will move depending on interest rates, traffic volumes and modelling CPI revenue increases.