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New targeted enhanced funding assistance rate

A new targeted enhanced funding assistance rate (TEFAR) has been approved by the NZ Transport Agency to assist councils in bringing forward new high and very high priority locally-led improvement activities for the 2018–21 National Land Transport Programme (NLTP).

The Government Policy Statement on land transport (GPS)(external link) establishes new key priorities of safety and access, supported by environment and value for money. The Transport Agency and Local Government New Zealand (LGNZ) have been working together through our joint Sector Reference Group to explore how best to assist councils to take up the opportunities provided by the GPS, which has increased the funding available nationally for locally-led activities.

This work recognises there may be financial challenges for some councils to take up these opportunities. TEFAR will mean up to 50% more funding for locally delivered improvement activity classes provided projects meet the range of requirements.

Please refer to detailed information on eligibility for targeted enhanced rates on the Planning & Investment Knowledge Base for further details. You can also find answers to recently asked questions about TEFAR.

Eligibility for targeted enhanced rates
Recently asked questions about TEFAR

Locally-led activities within the 2018–21 National Land Transport Programme that meet the eligibility criteria will automatically be eligible for TEFAR. However, councils may choose not to take up the TEFAR. For example, a council may be unable to identify any new eligible projects to bring forward, or to raise local share to progress the projects. In those instances please contact your Transport Agency representative.

National Priority Programmes – getting more for your money

National Priority Programmes provide our co-investment partners across local government with five areas where they can advance land transport projects and deliver more for their communities during the next three years for just a little extra money. The National Priority Programmes support the government’s transport objectives of safety, mode shift, resilience and regional economic development.

The five programmes are:

National Priority ProgrammePrimary outcome
Safety on local roads Reduce the number of Deaths and Serious Injuries on the transport network

Improving the effectiveness of public transport

Support an expansion in public transport networks and services

Walking and cycling improvements

Support an expansion in walking and cycling infrastructure

Improving network resilience

Support local road and state highway improvements and upgrades that provide resilience
Regional improvements Support investment in regional activities that improve safety, resilience, the environment and access for people and goods

If your project is included in the 2018–21 National Land Transport Programme and fits within one of the five National Priority Programme areas, it will be eligible for TEFAR. The first tranche of activities qualifying for these programmes have been identified through the development of the NLTP.

Projects that qualify for the TEFAR are those that fit within the five National Priority Programme areas and are assessed by the Investment Assessment Framework (IAF) as having a High or Very High results alignment with the government’s transport priorities. TEFAR can apply for both development and implementation of improvement activities.

Projects can be service or infrastructure improvements but must be able to be substantially completed by 30 June 2021 to qualify for enhanced funding. These programmes of work will be monitored and funding adjustments made.

We are now starting to work with the various local authorities to help them take up the offer of the TEFAR by identifying additional transport-related activities for delivery in 2018–21.

Activities included in the National Priority Programmes attract a TEFAR that is halfway between your local authority’s normal FAR and 100 percent – but capped at 90 percent. To qualify for the TEFAR, you must commit any “savings” to deliver additional transport projects by June 2021.

Next steps as at 18 September 2018

Local government is now encouraged to review their transport-related programme for 2018–21 and look for opportunities where projects can be brought forward for delivery during the next three years to receive a higher FAR.

Your Transport Agency relationship management contact or Director Regional Relationships will be able to assist you to achieve the best outcomes for your communities.

The Transport Agency recognises that TEFAR for National Priority Programmes is a new initiative. As such, questions and issues may continue to arise. The Transport Agency will be regularly updating the guidance to resolve these questions and issues. You can submit any questions or issues to your local Transport Agency representative or email