He will link up with long-time co-driver John Kennard for the two-day rally using the iconic roads near Raglan as well as in the Bay of Plenty.
It is the first time he has been back to New Zealand since Rally Coromandel in August.
"The guys have spent a lot of time - we have developed a lot of things on that AP4 car since Coromandel," Paddon said. "I got the shits with it a bit in Coromandel because the car was driving me rather than me driving the car so we said that was enough.
"We have gone back to the drawing board and changed a lot of stuff.
"Just having that freedom to do those sorts of things is back to the grassroots that we love."
Paddon was a big campaigner to try and get Rally New Zealand back on the world championship calendar. While disappointed that it won't happen next year he is looking forward to the challenge it presents.
"Obviously some pretty iconic Rally New Zealand stages will be on as well so I am really looking forward to the weekend."
The rally begins with a ceremonial start in downtown Tauranga tonight before competitive stages in the Raglan and Te Akau areas, including the famous Whaanga Coast stage, tomorrow and Bay of Plenty roads Sunday.