SuperGold Card public transport funding Te tiri pūtea mō te whakamahi Kāri Kōura i ngā waka tūmatanui

Providing all eligible New Zealanders aged 65 years or over, and those under 65 who receive the New Zealand Superannuation or the Veterans Pension, with free off-peak travel on public transport.

Te tuku kia piki utukore te hunga tika, 65 neke atu te pakeke, me te hunga kāore anō kia eke ki te 65 engari e whiwhi ana i te pūtea penihana kāwanatanga, i te penihana hōia rānei, i ngā waka tūmatanui i ngā hāora o waho i te pokenga.

What you need to know

The SuperGold Card scheme was introduced in 2008. It allows cardholders to travel free on scheduled off-peak urban public transport — between 9.00am and 3.00pm and after 6.30pm from Monday to Friday, and all day on weekends and public holidays. In the Auckland region, a special arrangement allows cardholders to travel for free during peak afternoon hours.

There are 5 exempt services in the scheme. These are not part of the relevant region’s core public transport network, as outlined in the relevant Regional Public Transport Plan. Exempt services include the Waiheke Island ferry, Fullers ferry to Devonport, Sealink ferry to Waiheke Island, Wellington Airport Flyer and the Wellington Cable Car.

The SuperGold website has information about how eligible New Zealanders can get the SuperGold card, and the offers available for cardholders.

The work to date

Jan 2019–Present

Scheme to be reviewed

In November 2019, the Minister for Disability Issues launched the Disability Action Plan 2019–2023, which replaces the previous Disability Action Plan 2014–2018. As part of the Disability Action Plan, we will conduct a strategic assessment of the services provided for people with different transport needs. This includes a review of the SuperGold Card Scheme. We have yet to confirm when this review will start.

In November 2019, the Minister for Disability Issues launched the Disability Action Plan 2019–2023, which replaces the previous Disability Action Plan 2014–2018. As part of the Disability Action Plan, we will conduct a strategic assessment of the services provided for people with different transport needs. This includes a review of the SuperGold Card Scheme. We have yet to confirm when this review will start.

The new Disability Action Plan was developed by the Office for Disability Issues in collaboration with the Disabled People’s Organisations Coalition and a range of government departments. It consists of 25 significant programmes of work to address key issues for disabled people, and will be carried out through 14 government agencies. The new plan aims to deliver the 8 outcomes in the New Zealand Disability Strategy 2016–2026.

A combined Ministry of Transport and Waka Kotahi Action Plan outlines how both agencies are putting transport-related actions in the new Disability Action Plan in place.

The new Disability Action Plan and New Zealand Disability strategy are available on the Office for Disability Issues website.

Regional council bulk funding began

The Government shifted to a bulk funding approach for the scheme instead of individual fare reimbursements, with the level of funding agreed between regional councils and Waka Kotahi NZ Transport Agency.

The Government shifted to a bulk funding approach for the scheme instead of individual fare reimbursements, with the level of funding agreed between regional councils and Waka Kotahi NZ Transport Agency.

Future projections show the number of people aged over 65 continuing to grow. To keep reimbursing individual fares would mean the scheme’s costs would continue to rise rapidly. Moving to bulk funding also brought SuperGold Card funding in line with the way other public transport funding is allocated. Any cost overruns must be funded by councils, encouraging cost savings and efficiencies.

Funding for the scheme was capped at NZD$28.129 million for the next 5 years, with annual adjustments to account for inflation.

Freeze on new services lifted

The Government removed the freeze on new services entering the scheme, which increased the range of services available, particularly in rural and provincial areas.

The Government removed the freeze on new services entering the scheme, which increased the range of services available, particularly in rural and provincial areas.

To be part of the scheme, new services must:

Scheme reviewed and updated

As a result of the review, the Government announced it would lift the freeze on new services entering the scheme, cap Crown funding for the next 5 years and introduce bulk funding.

As a result of the review, the Government announced it would lift the freeze on new services entering the scheme, cap Crown funding for the next 5 years and introduce bulk funding.

The targeted review looked at how the scheme operated and how the guidelines might change to keep it affordable, focusing on:

The review also ensured current cardholder entitlements stayed the same.

The Government would also:

Related documents and publications

Report

Sustainable funding of the SuperGold Card Transport Concession Scheme

Download PDF 301 KB Terms of reference

Terms of Reference

Download PDF 19 KB

Scheme reviewed and consulted on

In response to the review and consultation the Government increased the scheme’s funding to provide for growing demand. They put a freeze on new services entering the scheme to limit how much it cost to maintain it.

In response to the review and consultation the Government increased the scheme’s funding to provide for growing demand. They put a freeze on new services entering the scheme to limit how much it cost to maintain it.

After the first 12 months of operation it became clear that the scheme was not financially sustainable with the funding available.

The review aimed to develop recommendations to change the scheme in a way that was fair to all while delivering enough cost savings to make it financially sustainable for the next few years.

Key stakeholders and partners such as user representatives, public transport operators and regional councils were asked for feedback on the options to change the scheme.

We received 145 submissions in response to the consultation document. All but a small handful of submissions supported the scheme as it was and all argued that funding for the scheme should be increased to match the numbers using it.

Related documents and publications

Paper

Options to change the SuperGold Card free off-peak public transport travel scheme

Download PDF 271 KB Report

Cost Benefit Analysis of SuperGold Card Scheme

Download PDF 254 KB Report

Review of the SuperGold Card Free Public Transport Travel Scheme

Download PDF 579 KB Submission

Submissions to the Review of the SuperGold Free Travel Scheme

Download PDF 70 KB

SuperGold Card scheme introduced

The off-peak public transport scheme had 3 key principles — it was a national scheme, users traveled for free, and off-peak capacity could accommodate increased numbers.

The off-peak public transport scheme had 3 key principles — it was a national scheme, users traveled for free, and off-peak capacity could accommodate increased numbers.

Government projections on how many people would use the scheme were largely estimated as the initiative was new to New Zealand and there was little international data on similar schemes.

The Government announced a review would take place after the first 12 months to identify any refinements required to ensure the scheme’s long-term financial sustainability.

Get in touch

Related work

Work programme

Let's Get Wellington Moving

Supporting the Minister of Transport to agree the Government’s share of this transport initiative for the Wellington region.

Let's Get Wellington Moving Policy

Public Transport Operating Model

Developing a framework for affordable urban bus and ferry services that people want to use. Public Transport Operating Model Strategy

The Congestion Question

Investigating whether congestion pricing should be introduced in Auckland. The Congestion Question Work programme

Transport Outlook

Using data available from around New Zealand to examine the current and future state of transport demand in New Zealand.

Transport Outlook Strategy

Public transport 2045

Investigating the future of public transport. Public transport 2045 Work programme

New Zealand Household Travel Survey

Collecting information about New Zealanders’ daily travel. New Zealand Household Travel Survey Work programme

Public transport decarbonisation

Supporting the uptake of zero-emission public transport buses. Public transport decarbonisation Strategy

Auckland Light Rail project

Auckland Light Rail project

How the scheme is funded

The SuperGold Card scheme was introduced in 2008 for approximately 500,000 New Zealanders at an annual cost of NZD$18 million. The cost of funding the scheme grew due to increased use of public transport, rising fares and the annual increase in cardholders — about 29,000 a year. Originally the Government funded the scheme by reimbursing regional councils for individual fares. To limit the impact of increasing costs, a freeze on new services entering the scheme was in place from 2010.

In 2014 the scheme was reviewed to look at cost-effective sustainable funding. In 2015 the Government announced changes to the scheme, including lifting the freeze on new contracted services entering the scheme, and to put criteria in place to manage new services participating in the scheme. Lifting the freeze improved the range of services available to SuperGold cardholders, particularly in rural and provincial areas.

In 2016/17 the Government shifted to a bulk funding approach where regional councils agree on a set amount to cover the cost of providing free public transport for SuperGold cardholders with Waka Kotahi NZ Transport Agency. At the same time, funding for the scheme was capped at NZD$28.129 million until 2021/22, with annual adjustments for inflation.

What exempt services are and how they are funded

Some niche services classified as exempt services are included in the scheme. This has created an anomaly because these services receive reimbursements for carrying SuperGold cardholders although they would not normally be eligible for the scheme because they are not part of the region’s core public transport network.

Exempt services are fully commercial and are not contracted to a regional council. They are not part of a region’s core public transport network identified in the Regional Public Transport Plan and are deemed to be exempt under the Land Transport Management Act 2003.

There are a total of 5 exempt services in the scheme. These services are Crown-funded for trips provided under the scheme, and funding for each service is capped (with annual consumer price index adjustments to account for inflation). These per annum funding amounts were agreed by the Government in 2015:

Exempt services are fully commercial. Some exempt services joined the scheme when it started and continue to receive SuperGold Card payments despite being an exempt service. The funding for the participating exempt services is capped due to the high cost they impose on the scheme.

Why Aucklanders can use their SuperGold Card for travel during the afternoon peak

The afternoon peak concession in Auckland, from 3.00pm to 6.30pm on weekdays, is not part of the scheme. It is currently funded by Auckland Council. The concession is under review by Auckland Transport.

How the scheme uses smartcards

Regionally integrated smartcards are electronic travel cards that can be used to access all public transport services within a region. In some areas SuperGold cardholders must use smartcards if smartcard technology is available.

The cards, such as the AT HOP card in Auckland, allow us to also collect transport data to help plan future transport and provide a better understanding of the scheme’s costs to regional councils. Smartcards also ensure access to the scheme is as efficient and simple as possible for SuperGold cardholders.

Regional councils tell SuperGold cardholders when they need to get the relevant regional smartcard to access SuperGold Card travel. The smartcards currently cost up to NZD$10 per card. The amount charged by individual regional councils depends on their policy.

Smartcards are not issued to each SuperGold cardholder free of charge, because of the excessive cost — funding cards through the scheme would divert a substantial amount of funding from providing travel. However, the cost of buying a smartcard is small compared to the overall benefits cardholders receive through the scheme.