Understanding Large Passenger Service Licence Rules & How NHR Group Supports You

When it comes to transporting groups, knowing the licensing requirements is essential. In New Zealand, the NZTA Land Transport Rule: Operator Licensing 2017 sets out clear guidelines for large passenger services. If you’re driving a vehicle designed or adapted to carry more than 12 people (including the driver), this normally falls under the definition of a large passenger service — and you’ll need to hold the correct licence and endorsements.

But there are important exemptions that make things more straight forward for certain operators and drivers.

What Counts as a Large Passenger Service?

Large passenger services cover vehicles like minibuses, coaches, and other transport options with seating for 13 or more people. If you're using these vehicles for hire or reward, you usually need to operate under a large passenger service licence with a P Endorsement.

When Is a Service Exempt?

The Land Transport Rule makes allowances for what are known as exempt large passenger services. You fall into this category when:

• The vehicle is hired from a provider who holds both:
  • a large passenger service licence, and
  • a rental service licence, and
• The only payments made are for the cost of hiring and running the vehicle, and
• No payment is made for the driver’s service.

In simple terms: if you’re hiring a minibus/coach from a licensed provider, covering only the hire and running costs, and the driver is not being paid, you’re operating under the exemption.

Key Takeaway

As long as you’re following the exemption criteria in the Land Transport Rule: Operator Licensing 2017, you can drive large passenger service vehicles without breaching licensing requirements. Always make sure:

✅ The vehicle hire is from a licensed operator.
✅ Payments only cover hire and running costs.
✅ The driver’s service is not being paid for.

By keeping within these rules, you’ll stay compliant and ensure safe, legal group transport.

18-seater Rental Information sheet

As indicated in LTSA Fact Sheet 18

Fact Sheet 18 (quick Reference) – Volunteer drivers and Exempt passenger services – you can drive it without a P endorsement if you follow the following guide.

https://nzta.govt.nz/assets/resources/factsheets/18/docs/18-volunteer.pdf

This information is sourced from. 

The Land Transport Rule Operator Licensing 2017 Rule 81001/2017 As at 1 April 2021 (Law)

https://nzta.govt.nz/assets/resources/rules/docs/operator-licensing-2017-as-at-1-april-2021.pdf

This is located via NZTA website at this location

https://nzta.govt.nz/resources/rules/land-transport-rule-operator-licensing-2017

👉 Get in touch with our team today to discuss your passenger transport needs.