The Government is making it cheaper for Kiwis to get their driver licence through changes to how Waka Kotahi is funded, Transport Minister Michael Wood announced.

“All New Zealanders should have access to the independence and opportunities a driver licence provides. However, the cost of tests on top of other cost of living pressures can make access more difficult for many people,” Michael Wood said.

“From 1 October 2023 the average driver will save $86 when they successfully move through the graduated driver licencing system. The average cost of a learner licence will decrease by $20, a restricted licence by $35, and a full licence by $31.

“We’re also removing resit fees for practical driver licence tests, which can be up to $87 each time, which around half of New Zealanders are having to pay when trying for their licence.

“We’re anticipating these changes will cumulatively save drivers around $5.5 million each year. These savings will help ease the pressure on households while budgets are tight.

“Making driver licences more affordable will also support more people into work as many jobs require it.

“The changes to driver licence fees have been prompted by the first comprehensive review of regulatory funding, fees, and charges since the establishment of Waka Kotahi in 2008.

“In response to this 2019 review there will also be changes to other fees and charges across the land transport system, including for vehicle licencing and registration, commercial licence holders and vehicle certification. We are also introducing a set cost for accessing the Motor Vehicle Register.

“The majority of fees that impact New Zealand drivers and businesses have decreased or remained unchanged. Of the charges that will increase the majority of these will increase by less than $10, and are charges that have a limited number of transactions each year.

“The new funding model will allow Waka Kotahi to delivery its regulatory functions to a high standard to ensure our road network is safe and efficient,” Michael Wood said.

Road User Charges and fuel excise duty are not affected by these changes.

The 2019 Ministerial review of Waka Kotahi was commissioned after underfunding from previous governments resulted in regulatory failure. Since the report’s release, Waka Kotahi has made a number of steps to lift its regulatory performance. The changes to fees and charges will allow Waka Kotahi to continue its journey to build a safer and more effective regulatory function by improving its cost recovery model.

The changes to the funding model come into effect from 1 October 2023. Information about the changes is available at www.nzta.govt.nz/funding-and-fees

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