How would proposed changes affect me?

Cost increases for businesses may be passed on to consumers

Some of the proposed increases in fees and charges paid by businesses (eg vehicle importers, vehicle certifiers etc) may be passed on to consumers through higher prices. This would reduce impacts of changes in fees and charges on businesses, and increase impacts on consumers.

Impacts of proposed changes on industry

Impacts on the transport industry would range from small decreases to large increases in fees and charges. 

The road transport industry's costs usually rise by 2% each year. The change in Waka Kotahi fees and charges would mean an additional 0.2% increase to industry cost inflation when introduced (for the majority of the land transport industry).

Impacts of proposed changes on households

Impacts of the proposed changes on households would differ according to their demand for services – for example, how many drivers or vehicles they have. It would also vary depending on whether/how industry passes costs on to consumers.

Under the proposed changes many driver licensing fees would go down. This would mean these costs would likely go down for households with learner drivers and drivers renewing their licences.

But for many households these savings would be offset by other costs of buying, licensing and using vehicles that would increase under the proposed changes to other fees and charges.

If 50% of industry cost increases are passed on to consumers, the impact of the proposed change to fees and charges is an estimated increase in average annual household spend on transport ranging from $6.30 (for lower income households) to $26.80 (for higher income households).

If 100% of industry cost increases are passed on, then the estimated increase in average annual household spend on transport ranges from $10.30 (for lower income households) to $43.80 (for higher income households).

Impacts - scenarios

Whether fees decrease or increase for an individual, group, or company depends on their circumstances. The factsheets linked to below set out some scenarios and shows how the proposed changes could impact some people and companies.

These are estimates of overall costs of services and include current and proposed regulatory fees or charges - we can’t provide exact costs because, for example, what you pay for a WoF or CoF will depend on the business you choose for your WoF or CoF inspection. All estimates include GST. 

Waka Kotahi also collects revenue on behalf of other government agencies (eg Police vetting fees, ACC levies) eg in the cost of P endorsements. We don’t control charges from other agencies.