Provider-and-Agent Framework Reflected in Updated RUC Bill !

Following the Select Committee process, the updated RUC Bill heading toward its second reading includes a provider-and-agent structure closely aligned with the framework proposed by RUC on Rails.

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RUC on Rails
RUC on Rails

Following the Transport and Infrastructure Committee’s report on 18 May 2026, the updated Land Transport Revenue Amendment Bill is now preparing to progress toward its second reading.

The revised framework includes a provider-and-agent structure that closely reflects the model RUC on Rails advocated for through its written and oral Select Committee submissions.

Under the proposed structure, NZTA would remain the RUC Collector and system regulator. Approved RUC providers would issue licences, collect payments, remit RUC revenue, and remain accountable for compliance.

Those providers would then be able to use agents to deliver services on their behalf, provided the provider maintains effective oversight and remains accountable for the agent’s actions.

This is particularly important for the future retail RUC market.

It means retailers, payment networks, supermarkets, service stations, dairies, and other customer-facing businesses could support RUC purchasing as agents of an approved provider, rather than each needing to become a standalone regulated RUC provider.

The accompanying consultation material also specifically identifies over-the-counter services as part of the future provider market.

“This is the commercial structure we have been arguing for from the beginning,” says Adam Johnston, founder and CEO of RUC on Rails.

“The approved provider should carry the regulatory responsibility, while retailers and other agents focus on making the service accessible to customers. You do not build a nationwide retail market by expecting every dairy or service station to become a fully regulated RUC provider.”

RUC on Rails raised this issue during the Select Committee process because unclear boundaries between providers and customer-facing businesses risked locking the market into a small number of vertically integrated operators.

The updated Bill now provides a clearer path for provider-led agent networks, retail distribution, and over-the-counter RUC access.

For RUC on Rails, this is a meaningful milestone. Our commercial model has always centred on operating as the approved provider while enabling established retailers and consumer-facing businesses to participate as agents.

We are pleased to see that framework reflected in the updated Bill as it moves toward its second reading.

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