This module outlines the framework for investment in public transport services and infrastructure in New Zealand and links to relevant NZTA requirements, polices, and guidance.
Under Part 5 of the Land Transport Management Act (LTMA), public transport is organised around three statutory service types, which include integral, exempt and excluded services.
NZTA and local authorities can only subsidise integral services that are identified in a regional public transport plan and provide financial assistance to exempt services under limited circumstances.
Integral services must be delivered by or under contract with a public transport authority, unless exempt. Exempt services are usually provided by private, for-profit entities such as ferry, bus and taxi companies, ride sharing services or not-for-profit community transport entities.
The information in this section relates to the investment and expenditure in public transport services that is identified in Regional Public Transport Plans and the infrastructure necessary to support the efficient an effective operation of those services.
Public transport expenditure types are organised into two broad categories being operating and capital expenditure.
Capital expenditure includes expenditure that enables provision or renewal of public transport infrastructure such as (but not limited to) bus lanes, rail lines, public transport facilities, enabling assets, and technology systems such as ticketing and passenger information systems.
Operating expenditure includes expenditure that enables:
Funding for public transport expenditure comes from a variety of funding sources. Funding sources are categorised in different ways for different purposes. The funding source descriptions and how they are categorised are outlined below.
| Public / private categorisation | Funding source description | NLTP categorisation |
| Private share funding sources | Passenger fare revenue provides funding directly from users of public transport services, including Total Mobility. | Supplementary funding sources (from an NLTP perspective) |
| Third party funding is funding provided by entities in exchange for a benefit associated with public transport services or infrastructure. Examples include, but are not limited to, funding from entities to reduce passenger fares for nominated user groups (e.g. a university providing funding to enable free travel for their students) and commercial revenue such as advertising, rents and café revenue associated with public transport services and infrastructure. Third party funding may come from entities that receive public funding, such as education and health providers, and can still be categorised as a private share funding source for the purposes of public transport investment and expenditure accounting. For the avoidance of doubt, third party funding excludes funding from approved organisations, the NLTF or direct Crown funding for public transport purposes. These are categorised as public share funding sources. |
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| Public share funding sources | Crown funding is direct funding from the Crown for public transport purposes including fare concessions or other specified purposes that the government may nominate as part of their annual budgeting process. Crown funding is normally manged by NZTA on behalf of government. | |
| Local authority funding unmatched from the NLTF is funding from public transport authorities or other approved organisations that is not matched by NZTA from the NLTF. Examples include, but are not limited to, a public transport authority providing funding for a new public service or providing free weekend travel for youth where no NLTP co-funding is allocated by NZTA. | ||
| Local share is funding from public transport authorities or other approved organisations that is matched by NZTA from the NLTF based on funding assistance rates. | NLTF co-funding | |
| NLTF share is funding from the NLTF matched to local share funding based on NZTA funding assistance rates. |
Information about funding assistance rates set by NZTA
This method classifies funding sources based on whether it’s a private or public share funding source. The amount of private share funding received ultimately determines the public share funding requirements.
The ratio between private and public share funding sources is dynamic and changes over time based on passenger demand, service levels and funding policy. Most public transport services require both public and private funding sources to operate and enable broader outcomes in the public interest.
This method classifies funding sources for the purposes of administering the National Land Transport Programme (NLTP) in accordance with NZTA’s Funding Sources Policy.
National Land Transport Programme Funding Sources Policy (NLTP 2024-27)
Eligible public transport activities included within the NLTP are normally co-funded by approved organisations and NZTA on a net funding basis. This means supplementary funding sources are subtracted from the total operating cost and the balance is co-funded at the applicable financial assistance rate by local and NLTF share funding sources.
Investment requirements that are relevant to the NLTP and allocation of funding from the NLTF are set out in the Planning and Investment Knowledge Base (PIKB), which is updated every three years to align with the Government Policy Statement on Land Transport.
PIKB provides comprehensive information on requirements for public transport programmes and improvements, as well as work category definitions and investment conditions under the under the NLTP.
