A national plan to expand road tolling in New Zealand is facing significant delays, with its release now postponed until early 2027, two years later than originally scheduled. The delay comes amid funding challenges that have slowed progress on major highway projects across the country.

The Transport Agency Waka Kotahi attributed the hold-up to “internal capacity constraints,” citing the heavy workload from multiple tolling projects over the past two years. The agency had initially planned to deliver the national tolling plan and strategic framework by 2025, but the timeline was pushed back first to 2026 and now to 2027.

The strategic tolling position will outline how existing and new tolling powers, as outlined in legislation before Parliament, could be applied more widely across the country’s road network. It is intended to guide decisions on which roads could be tolled and how toll revenue fits within broader transport funding.

Transport Minister Chris Bishop acknowledged last week that some highway construction timelines would need to be adjusted, calling the previous commitments “very ambitious” given shifting circumstances. However, when asked if the revised deadlines took into account the absence of a completed tolling plan, Bishop deferred to Waka Kotahi for comment.

Several significant projects that form part of the Roads of National Significance (RONS) programme have been affected. Some tolling assessments have been underway for corridors such as Northland to Whangārei, Mill Road in West Auckland, and Tauriko West near Tauranga. Recently, tolls have been introduced or are planned for three new highways in the North Island: the Ōtaki to north of Levin route, Penlink in north Auckland, and the Takitimu North Link from Tauranga to Te Puna.

The contentious O Mahurangi section of Penlink, linking Whangaparāoa Peninsula to State Highway 1, has seen its completion pushed from 2026 to 2029 due to challenging construction conditions and slips affecting the Wēiti River Bridge. The project’s estimated cost has also risen to approximately NZ$830 million.

Currently, tolls exist on only three highways north of Auckland and near Tauranga. The delayed tolling plan and supporting strategy are expected to give the Government’s recently expanded tolling legislation greater effectiveness. Since 2024, all large road projects must consider tolling as a funding option.

The Land Transport (Revenue) Act 2009 specifies when tolls can be applied, including on new roads, distance or time-based charges, lanes designated for buses or high-occupancy vehicles, and congestion zones. The legislation also outlines requirements for toll collection, use of revenue, and enforcement mechanisms. However, measures such as congestion charging and pulse tolls may require additional, separate legislation.

The Government’s funding strategy, detailed in its Infrastructure Strategy and the NZ$50 billion Roads of National Significance programme announced in the 2023 Budget, seeks to reduce direct Crown investment by shifting toward a user-pays funding model. Officials argue that this approach not only addresses funding gaps but also makes road use fairer by charging users based on their level of usage.

Waka Kotahi emphasized that a key objective of the forthcoming tolling plan and strategy is establishing “a fair and equitable tolling system that manages demand,” aiming to balance infrastructure financing with effective traffic management.