What you need to know about Auckland's regional fuel tax

Thursday, 31 May 2018

Aucklanders will pay 11.5 cents more per litre of petrol from July 1.

Auckland is about to get a regional fuel tax, after councillors voted 13-7 in favour of the proposal on Thursday.

The tax, of 11.5 cents per litre, will be added to petrol and diesel sold within the Auckland region.

So how will it affect motorists, and what happens next?

Here's everything you need to know about the tax.

**READ MORE:

The tax will go towards a massive transport infrastructure overhaul across the region.

* Auckland Council approves regional fuel tax

* What you need to know about the $28 billion Auckland Transport Alignment Project

* 'We are literally bracing ourselves': D-Day for fuel tax**

WHAT'S IT ALL FOR?

The Regional Fuel Tax (RTF) is being put in place to help fund the Auckland Transport Alignment Project.

The project is a $28 billion overhaul of Auckland's transport infrastructure, which is set to run from 2018-2028. You can find more information about it here.

The fuel tax is expected to raise about $1.5 billion over 10 years, but Government subsidies and development contributions will take that figure to $4.3 billion.

Auckland Council will also contribute to the project, while the Government will provide the remaining $18.5 billion, most of it coming from the National Transport Land Fund.

HOW MUCH WILL IT COST ME?

In 2017, the Automobile Association (AA) said a 10 cent per litre fuel tax would cost an average motorist, driving an average car, $125 per year.

Tack on the extra 1.5 cents the council has approved, and the fuel tax will cost the average motorist about $143.75 a year.

That's the cost of about 38 takeaway coffees – less than one a week for a year – or a year's subscription to Netflix.

HOW LONG WILL IT LAST?

The fuel tax will come into force on July 1, and will be in place for 10 years.

WHAT WAS THE ALTERNATIVE?

According to advice presented to councillors, rates on residential properties would need to rise up to 11 per cent to fund the transport project if the fuel tax did not go through.

WHO VOTED FOR IT?

Mayor Phil Goff, Bill Cashmore, Josephine Bartley, Cathy Casey, Ross Clow, Linda Cooper, Chris Darby, Alf FilipaIna, Christine Fletcher, Richard Hills, Penny Hulse, Wayne Walker and John Watson.

WHO VOTED AGAINST IT?

Fa'anana Efeso Collins, Mike Lee, Daniel Newman, Greg Sayers, Desley Simpson, Sharon Stewart and Sir John Walker.

WHAT HAPPENS NEXT?

For the fuel tax to be put in place, the Land Transport Management (Regional Fuel Tax) Amendment Bill needs to be passed by Parliament.

Transport Minister Phil Twyford introduced the bill in March.

It has been sent to a select committee for public submissions and is expected to be passed in June.