The annual licence fee, also known as ‘rego,’ has not changed since 1994. As per a 2024 policy review, the government has taken a decision to restore their value to inflation-adjusted levels with an incremental increase of NZD 50 over two years starting January 2025 and again in 2026 (transport.govt.nz). Further, come October 2025, various other fees such as ACC levies, admin charges, tyre stewardship fees, Clean Car levies, and greenhouse gas levies will be adjusted to better reflect their present service delivery costs (nzta.govt.nz).
New Fee Structure – What Drivers Will Pay
Under the new fee structure, vehicle fees will include: registration and licence fee, ACC motor-vehicle levy, administrative fee(e.g., $8.66 online or $11.99 via agent), tyre stewardship ($38-$76 depending on vehicle type), Clean Car CO2 levies (if any), and GST (nzta.govt.nz). Exact amounts depend on the class of vehicle, such as passenger cars, light diesel, electric vehicles, etc. To give an estimate: a licence for 12 months, starting from mid-2025, in the case of a petrol car under 1300 cc would be around NZD 244.91, for electric cars would be NZD 265.61 (nzta.govt.nz).
Impact on Different Vehicle Types
- Electric vehicles lose their ACC discount from 1 January 2025 and start paying at parity with petrol cars.
- Diesel and large-engine vehicles are set to see bigger levy increases matched to road impact.
- Low-income owners might feel the effect even more, as flat fee increases become even more regressive.
Advantages of New Fees
The revenue raised through these fees will go into the National Land Transport Fund for maintenance of roads and for implementing safety and transport infrastructure measures according to the 2024 Government Policy Statement (transport.govt.nz). Administration charges will also be better aligned with real service costs.
What Drivers Should Do
Vehicle owners should ideally prepare for the change by: checking their current rego renewal date, ensuring their payment details are up to date (especially bank info), and budgeting for renewals that will be slightly more expensive from October 2025. Online renewals are recommended since they save someone some dollars in admin fees. For prices applicable to your vehicle, either use the Waka Kotahi online tool or contact them directly for a detailed breakdown (autotrader.co.nz, rightcar.govt.nz).