Your top RUC questions answered

Here’s everything you need to know about automating your RUC management and compliance.

1. What are Road User Charges (RUC)?

Road user charges (RUC) were introduced in New Zealand in 2012 by the NZ Transport Agency (NZTA) for vehicles that are not taxed directly at the pump. This typically includes heavy and light vehicles that use diesel.

Vehicles powered by petrol, CNG and LPG aren’t required to pay RUC as these fuels are already taxed at the source. This includes most cars and small vehicles.

The revenue collected from road user charges is dedicated to the National Land Transport Fund (NLTF) which funds road improvements and maintenance, public transport and road safety.

2. Who needs to pay RUC charges?

All vehicles that meet the following criteria must pay RUC charges:

Vehicles that have a manufacturer’s gross laden weight of 3.5 tonnes or more
Vehicles that use diesel or other fuel not taxed at the source/pump

These charges are paid to the NZTA and enforced on the road by the NZ Police.

RUC compliance requires road users to have the correct RUC documents displayed at all times to avoid a fine. However, there are several exemptions available for certain types of vehicles, such as tractors.

Operating without the required licence, or distance recording technology to support your claims runs the risk of incurring fines of up to $3,000 for individuals and $15,000 for organisations.

3. How does EROAD help fleet’s manage their RUC compliance?

EROAD’s electronic RUC solution revolutionises the way you manage and pay RUC charges for trucks, light vehicles and trailers. It also automates the entire off-road RUC (RUCOR) claim process.

EROAD’s system automatically records the distance each vehicle travels on-road and accurately records all off-road travel with its intuitive GPS-tracking capability. This allows you to automatically top up RUC when you need it and claim back accurate off-road RUC dollars!

EROAD’s electronic RUC system cuts out the paperwork and admin time, reduces the risk of accidental non-compliance and helps you claim more off-road refunds, faster.

Our NZTA-approved, secure, bank-grade payment system means you can automatically top up your RUC compliance (AutoRUC) as you go or at the touch of a button (electronic RUC).

Your RUC is immediately displayed on our in-vehicle EHUBO device. No more admin or special trips to the Post Office!

What’s more, you can automatically purchase RUC in legally minimum amounts so that you can keep more cash running your business – rather than sitting on the windscreen.

4. How does the Auto-RUC purchase of licences work?

EROAD connects your bank account via direct debit to NZTA. When a licence is within 250km of expiring, the next licence is automatically purchased for that vehicle. It is then displayed electronically in the cab.

5. How does the e-Ruc purchase of licences work?

With e-RUC, you can automatically purchase RUC in legally minimum increments via our secure, bank-grade payment gateway. The system automatically sends the RUC licence information to the screen on your EROAD in-cab hardware for display as an approved electronic RUC licence – no paper labels required.

6. How does EROAD help fleets manage their off-road RUC (RUCOR) claims?

EROAD’s highly accurate GPS system, which is supported by a sophisticated geofence tool, accurately tracks and records off-road travel anywhere in New Zealand so you can claim the maximum amount of off-road RUC rebates you’re entitled to.

7. What are the key benefits of EROAD’s RUC Solution for claiming RUCOR?

EROAD’s RUC Solution helps maximise your fleet’s RUCOR by:

• Automatically calculating off-road travel and estimated refunds
• Generating RUCOR claim forms automatically for you
• Allowing you to electronically submit RUCOR claim forms to NZTA at the touch of a button
• Improving cash flow with more frequent automated claims and the frequency of off-road refunds
• Archives RUCOR claims to help meet legal compliance
• Saves time and money by reducing admin time spent on claims

8. How does EROAD’s RUCOR Solution work?

As soon as a RUC licence expires, EROAD’s mapping engine automatically determines off-road travel that is not subject to RUC e.g. travel on a private road or within a depot near a public road.

EROAD’s web-based application, MyEROAD, then automatically generates accurate off-road reports and allows you to electronically verify and submit your claims to NZTA, avoiding paper-work hassles and postage.

9. How does geofencing maximise off-road RUC (RUCOR) claims?

If your company has a depot or operates at customer sites that are located close to public roads, you can also claim valuable off-road RUC dollars for work in these areas.

EROAD’s system geofences these areas to help get you the maximum RUCOR claim you’re entitled to In effect, EROAD’s smart telematics platform allows you to ring-fence special areas/sites and deem them as off-road. This means you can maximise your RUC claim by including all travel in those areas as off-road.

10. How is off-road distance calculated and claimed?

EROAD automatically calculates your ‘on’ and ‘off-road’ travel using our sophisticated GPS mapping software. You can also maximise your claim by creating off-road geofences in our system. For example, if you are carrying out construction on a previously classified public road, it can be deemed ‘off-road’ while you are working in that area.

Once your RUC licence expires, you can immediately submit your off-road claim to the NZTA at the touch of a button. EROAD’s system also allows you to review the recorded ‘off-road’ areas prior to making a claim.

11. Do I have to have a mechanical hubo?

No. EROAD was the first Electronic Distance Recorder approved by NZTA. Once installed, the EROAD unit becomes your official distance recorder.

12. Can I use EROAD’s fleet management software to manage my light vehicles?

Yes. EROAD’s Ehubo 2 can be used for light commercial or passenger vehicles. All you need to do is keep the unit synchronised with your odometer as the odometer remains the official distance recorder on class 1 vehicles.