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Offline AshSimmonds

  • Geekitecht

  • Joined: Feb 2006

  • Drives: GF's shitbox :(
  • Location: Adelayed
  • Name: Humble Narrator
  • www: AshSimmonds.com
Scrap rego: push to charge drivers per km
By Samantha Hawley

A key infrastructure lobby group has called for road taxes such as registration to be scrapped in favour of charging motorists for each kilometre they drive, just ahead of the release of the long-awaited Henry tax review.

Treasury secretary Ken Henry hinted last October that his tax review would recommend an overhaul of Australia's road charges.

Dr Henry estimates road congestion, or what he calls the "tragedy of commons", costs about $9 billion a year and will rise to $20 billion in a decade.

At the time he raised the prospect of a congestion tax to discourage people from driving during peak times.

The executive director of Infrastructure Partnerships Australia (IPA), Brendan Lyon, says all existing road taxes - including registration, licensing fees and the fuel excise - could be abolished and replaced with a per-kilometre charge for motorists.

"[That would mean] moving to a three-tier pricing system, moving to a more efficient way of collecting tax charges across our transport network, bringing a fairer, more equitable system," he said.

According to IPA's calculations, the average motorist would pay about 8 cents for every kilometre they drove.

Driving during peak times in a metropolitan centre would cost more but the charge would be less if motorists ventured out during off-peak times.

Mr Lyon says an IPA paper has looked at what motorists would pay per kilometre now for a number of typical journeys in Sydney and Melbourne.

"That has shown that the average price for motorists under the status quo with the congestion road network is around 12 cents or more per kilometre," he said.

"So we are in fact talking about lower costs for motorists."

He says Australia could raise an additional $4 billion per annum for investment in transport infrastructure under that system.

The Henry tax review will be released on Sunday.


Offline mhh

  • Chief Test Pilot

  • Joined: Feb 2006

  • Location: Adelaide
Lower costs for motorists and will raise additional $4bn.  Yeah, right.  :doh:

Edit:  Good idea to look at all road related revenue, all the same.  I wonder if any government has the political courage to make real changes to tax law.

Offline CortinaD

  • Joined: Jan 2008

  • Location:
  • Drives:
Lower costs for motorists and I will raise additional $4bn.  Yeah, right.  :doh:

They will just raise the speeding/redlight fines up to make up the difference.

Offline j15

  • Joined: Oct 2006

  • Location: Sydney
Mandatory GPS tracking of cars to work out your bill is key to making that even remotely feasable. You know what comes next after that....

Offline Cuso

  • Joined: Oct 2008

  • Location: Canberra
Sunday is certainly going to be an interesting day when this review is released.

It will be good to see the end of all of these "experts" speculating what is going to be included/introduced/increased

Offline deangpsx8

  • I Am Legend
  • I am legend in my own lunchbox

  • Joined: Dec 2007

  • Drives: Everyone Crazy
  • Location: Don't know I'm Lost
  • Name: Dean
  • www: Intellitrac.com.au
Mandatory GPS tracking of cars to work out your bill is key to making that even remotely feasable. You know what comes next after that....

I am in the GPS business...and GPS tracking tampering by employees is my biggest grief.
Not sure if it is feasable.
But it would be great business for us.
It might turn out to be another insulation debarcle.
We had one customer experience over 7000 service calls in one year....all due to tampering and malicious damage.
Company culture changed...tampering stopped.
Had 10 guys in the service dept dedicated for this client ...now have 1/2 a person resource.
Persistence Beats Resistance

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