📋 Tender Overview
The Government will make changes to ensure the continued viability of a scheme that helps people travel when they cannot access public transport on their own, Transport Minister Chris Bishop and Disability Issues Minister Louise Upston announced today.
Total Mobility provides subsidised taxi fares for people with disabilities and for older New Zealanders who may be prevented from using buses, trains or ferries independently. The subsidy is split between the Government and public transport authorities - local councils and the NZ Transport Agency NZTA - and provides an important service for the people who use the scheme, Chris Bishop says.
Total Mobilitys costs have been escalating unsustainably since changes in 2022 increased the fare subsidy from 50 percent to its current 75 percent. In increasing the subsidy, the previous government did not account for the higher demand and costs this change would produce over time. Increased demand now means the scheme is close to exceeding its Crown funding and is placing significant pressure on the contributions from local councils and NZTA. This is yet another fiscal cliff left to us that we are having to correct and fix.
Today, the Government is announcing decisions to stabilise the Total Mobility scheme so that the disability community is supported in a financially sustainable way, by all funding partners.
The Government has decided:
the fare subsidy level will reduce from the current 75 percent down to 65 percent from 1 July 2026
NZTA will work with public transport authorities to lower the fare caps and the maximum subsidy by approximately 10 percent
reduced costs to the Crown from these changes will be recycled to public transport authorities to reduce their shortfall over 2025 to 2030.
As demand grows, we need to make sure the scheme reaches those who need it most. The Government aims, as part of consultation, to look at improving the assessment process for access to Total Mobility, better targeting the scheme by allocating users a set number of trips based on their needs, and increasing choice of services e.g. wheelchair accessible trips, ride-hail apps or community transport, Chris Bishop says.
We appreciate these decisions will mean fares will increase for Total Mobility users, but they will still receive a higher subsidy level than prior to 2022, Louise Upston says.
The changes also provide certainty that those who need the service will have continued access to it.
Public transport authorities are key partners in funding and delivering Total Mobility. In response to increasing cost pressures on ratepayers, several public transport authorities have been considering reducing the discount to 50 percent in their region.
Disabled people should receive the same Crown support wherever they live in New Zealand. Thats why we want to stabilise Total Mobilitys funding pressures in a way that ensures financial sustainability, consistency in how the service is delivered, and fairness across New Zealand, Louise Upston says.
As part of these changes, the Government will provide 10 million to NZTA to help reduce public transport authorities funding shortfalls, Chris Bishop says.
This will ensure quick relief to public transport authorities until the subsidy changes take effect from the next financial year.
Beyond ensuring the schemes financial viability, the Government is also taking the opportunity to consider changes to strengthen a system so that it works better for disabled people, Louise Upston says.
The Ministry of Transport will be releasing a discussion document to consult on proposals to strengthen Total Mobility to ensure fairer, consistent and more sustainable access to services for people with the greatest need.
Total Mobility provides an important service for disabled and older people and we want it to continue to serve them well for years to come. The changes we are making will ensure that happens.
Notes to editor:
Prior to 2022, Total Mobility users received a 50 percent fare subsidy. In 2022, that was increased to a 75 percent fare subsidy.
The higher subsidy has seen registered users increase from 108,000 in 2022 to 120,000 in 2024/25.
Total Mobility trips have also increased from 1.8 million trips in 2018 to three million in 2024/25.
Under current settings, costs are forecast to exceed funding available for all funders by 236 million over the period 2025-2030.
The Government has decided to:
reduce the Total Mobility subsidy level from 75 percent to 65 percent from 1 July 2026 by decreasing the Crowns subsidy contribution from 25 percent to 15 percent
work with public transport authorities to reduce the Total Mobility fare caps by around 10 percent in each region
use Crown savings from these changes to reduce public transport authorities shortfall over 2025-2030.
The Government is allocating 10 million from existing funding to reduce public transport authorities funding shortfalls this financial year.
NZTA will be empowered to determined how this funding will be allocated to public transport authorities.
The Government is also consulting on the Total Mobility Discussion Document, which contains proposals to strengthen the scheme. Consultation material is available on the . Alternate formats will be released as these are available.
