A bill enabling "corridor tolling" for existing roads has advanced following its second reading under urgency in June, marking a potential shift in how New Zealand finances its transport infrastructure. The legislation would allow tolls to be applied to roads that already exist, rather than new highways, provided users benefit from the construction of a new road within the same corridor.
The proposed change, referred to as corridor tolling, has generated debate due to the political sensitivity of toll charges. Chris Penk, a National Cabinet minister and MP for Kaipara ki Mahurangi, has publicly supported the infrastructure improvements while stressing the importance of drivers retaining access to a free alternative route near any new toll road.
A select committee reviewing the bill recommended clarifying the benefits that motorists should experience to justify tolls. At least one of four key benefits—time savings, increased safety, enhanced reliability, or improved resilience—would need to be demonstrable for tolls to apply. The committee also advised removing "efficiency" as a benefit, stating it should be shown through other user advantages rather than as a standalone criterion.
Under the proposed legislation, the use of toll revenue would be broadened beyond the current restrictions, which limit spending to highway maintenance, debt repayment, and operating costs. Annual toll adjustments would be tied to the Consumer Price Index inflation rate.
Technological limitations have historically constrained the expansion of tolling, particularly due to outdated camera systems. The transport agency has invested several years in upgrading this infrastructure to support the new tolling framework.
The agency’s new "strategic tolling position" is expected to implement the 2024 policy statement on tolling, outlining how the expanded tolling powers will be applied. Officials are also evaluating tolls within the wider transport funding context, considering their relationship to other financing tools and network management strategies.
Currently, New Zealand has three toll roads, where fees range from $2.10 to $2.60 for cars and $5.20 to $5.60 for trucks. The Northern Gateway Toll Road, located north of Auckland, recorded 8.6 million toll transactions in the 2023-24 fiscal year. Revenues generated from this route have been sufficient to cover debt, with projections indicating the possibility of toll removal by 2038.
Similarly, the Tauranga Eastern Link Toll Road, with 4.1 million trips, and Takitimu Drive, with five million trips, could see toll removal by 2037 and 2031 respectively. Breakdown of revenue from a $2.60 car toll reveals that approximately $1.46 contributes to debt repayment, 80 cents covers operating costs, and 34 cents goes to GST.
The bill proposes that future toll collections focus on financing the ongoing maintenance and operation of the tolled roads themselves, potentially reshaping the funding model for New Zealand’s transport infrastructure.