Waka Kotahi’s fee changes a blatant tax grab and additional barrier to upskilling

Waka Kotahi’s fee changes a blatant tax grab and additional barrier to upskilling

Changes to motor vehicle licensing and registration fees will whack productive New Zealanders with higher costs while Waka Kotahi (New Zealand Transport Agency) continues to grow its backroom bureaucracy warns the New Zealand Taxpayers' Union.

When the proposed changes were announced for consultation last year, the Taxpayers Union warned against the changes. Waka Kotahi is expected to collect an additional $66 million in annual revenue as a result of the changes plus any additional money taken from the National Land Transport Fund — $35 million was the figure proposed last year.

Winners from the changes:

• Convicted drink drivers: (84% decrease alcohol interlock license cost)
• Collectors of exotic vehicles (87% reduction in fees for Category A special interest left hand drive light vehicles)
• Drivers who fail their license tests (removal of resit fees)
• Waka Kotahi ($66 million increase in annual revenue).

Losers from the changes:

• Uber and taxi drivers (193% increase in the cost for a 1-year P endorsement)
• Tow truck drivers (172% increase in 1-Year Vehicle Recovery endorsement)
• Forklift drivers (41% increase in endorsement fees)
• All motorists (Increase of between 71% and 374% for everyone renewing their vehicle rego)
• Older siblings (268% increase in the exemption fee for restricted drivers carrying passengers)
• Night-shift workers (268% increase in the exemption fee for restricted drivers driving to work between 10pm and 5am)

Taxpayers’ Union Campaigns Manager, Callum Purves says:

“We warned against these changes last year when the consultation was announced. Jacking up fees for hard-working New Zealanders while reducing costs on convicted drink drivers and collectors of exotic vehicles is neither fair nor necessary.

“The real winner from these changes is Waka Kotahi’s bureaucracy which, based on the consultation document, plans to employ an additional 265 full-time equivalent staff – a 55.6% increase on 2018 numbers.

“Particularly concerning is the increased license endorsement costs for Uber, taxi, forklift and tow-truck drivers. These endorsement fees act as a barrier to low-income New Zealanders considering upskilling and will simply exacerbate the cost of living crisis for these individuals."