How Loopie Champions Modern RUC in New Zealand

Date 11/08/2025 time 3:06pm

New Zealand is about to see one of the biggest changes to road funding in decades. The petrol tax is being phased out and replaced with a universal Road User Charges (RUC) system. This will affect almost every driver in the country and, for many, it will mean installing a new device to record the distance their vehicle travels.

This is a major shift that comes with a lot of questions. What exactly is RUC? Why is it changing? How will it work for everyday drivers? And how can you make sure you stay compliant without overpaying or giving up your privacy?

Understanding Road User Charges

RUC is a way of funding New Zealand’s roads where drivers pay for the distance they travel rather than the fuel they buy. At the moment, it applies mainly to diesel vehicles, electric vehicles (EVs), plug-in hybrids (PHEVs), and heavy vehicles over 3.5 tonnes. Petrol vehicles have been exempt because they contribute through fuel tax, but that is set to change.

The government’s main reason for expanding RUC to all vehicles is simple. Petrol tax revenue is falling. As more people switch to EVs and fuel-efficient cars, the money collected from fuel tax is no longer enough to maintain and improve our roads. By charging all vehicles based on distance travelled, the system aims to be fairer and more sustainable.

What the Changes Mean for Drivers

From 2026 onwards, light petrol vehicles will also need to pay RUC. By 2027, the system will be fully modernised, with paper licences largely replaced by digital systems. Drivers will be able to buy and manage their RUC through apps and online platforms, and there will be more options for recording distance.

For most drivers, this will mean installing an NZTA approved RUC device. These devices either read the odometer or track your location using GPS. While GPS tracking has benefits for fleet operators who need detailed route data, it is unnecessary for private drivers whose only requirement is to record distance for compliance.

Choosing the Right RUC Device

The market will soon see a range of options. Some devices will be designed for large commercial fleets and will collect detailed location and route data. Others will take a simpler approach and only record odometer readings.

For everyday drivers, odometer-based devices are often the most practical choice. They are accurate, easy to install, and protect your privacy by not tracking your movements. While they do not offer the extra data that some businesses need, many private drivers see this as a benefit rather than a drawback.

How Loopie Fits In

Loopie, based in Dunedin, is building an NZTA compliant RUC device designed for everyday New Zealanders. Our focus is on fairness, affordability, and privacy. The Loopie device plugs into your car’s OBD port and records only what is needed for RUC compliance. It does not track your location, it does not log your travel history, and it does not send unnecessary data to third parties.

We started Loopie because we did not want to see Big Tech take over this space with expensive and overcomplicated devices that do far more than the law requires. We know the technology can be built affordably, and we believe Kiwi drivers should not have to give up their privacy just to comply with road funding laws. Our mobile app will make buying and managing your RUC simple, with a plain language interface that is easy for anyone to use.

Preparing for the Future

While the full rollout is still a couple of years away, it pays to start thinking about how you will handle RUC compliance. Understanding the new rules now will mean fewer surprises later. Keeping an eye on which devices are approved by the NZTA will help you choose the right one before the market gets crowded.

When the time comes, Loopie will be ready to give New Zealand drivers a choice that is simple, affordable, and built for privacy. We believe road funding can be fair without collecting more data than necessary, and we are proving that a Kiwi solution can be just as effective and far more respectful than anything Big Tech has to offer.