The Government has announced cuts to its Total Mobility subsidy scheme, which offers subsidised taxi fares for people with disabilities and for older New Zealanders who are not able to use buses, trains or ferries independently.
It says the cuts were necessary to ensure the continued viability of the scheme. The Government has today confirmed:
- the fare subsidy level will reduce from the current 75% down to 65% from 1 July 2026;
- NZTA will work with public transport authorities to lower the fare caps and the maximum subsidy by approximately 10%;
- reduced costs to the Crown from these changes will be recycled to public transport authorities to reduce their shortfall over 2025 to 2030.
“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,” said Transport Minister, Chris Bishop.
“Total Mobility’s costs have been escalating unsustainably since changes in 2022 increased the fare subsidy from 50% to its current 75%. 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.”
Minister Bishop said the Government was today announcing decisions to stabilise the Total Mobility scheme to allow the disability community to be supported in a financially sustainable way, by all funding partners.
“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),” he said.
Disability Issues Minister, Louise Upston said that while the Government appreciates the decisions will mean fares will increase for Total Mobility users, they will still receive a higher subsidy level than prior to 2022.
“The changes also provide certainty that those who need the service will have continued access to it,” said Ms Upston.
“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. That’s why we want to stabilise Total Mobility’s funding pressures in a way that ensures financial sustainability, consistency in how the service is delivered, and fairness across New Zealand,” she said.
As part of these changes, the Government will provide $10 million to NZTA to help reduce public transport authorities’ funding shortfalls, said Minister Bishop.
“This will ensure quick relief to public transport authorities until the subsidy changes take effect from the next financial year,” he said.
“Beyond ensuring the scheme’s financial viability, the Government is also taking the opportunity to consider changes to strengthen a system so that it works better for disabled people,” said Minister Upston.
She said the Ministry of Transport will release 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.”
The Government is also consulting on the Total Mobility Discussion Document, which contains proposals to strengthen the scheme. Consultation material is available on the Ministry of Transport website.
