Engineers Australia’s Transport Australia Society (TAs) has today released a discussion paper aimed at bringing new perspectives to a national conversation about the future of road pricing and transport investment in Australia.
With fuel excise revenue declining as electric vehicle uptake grows, there is increasing urgency to explore sustainable, long-term funding models for Australia’s roads.
The Intergenerational Report 2023 warns that unless action is taken soon, fuel excise revenue will fall to zero after 2050, leaving a $26 billion annual funding gap for our roads and transport infrastructure.
The release of the discussion paper comes as Federal Treasurer The Hon Dr Jim Chalmers MP revealed there’s a need to introduce a new system of road-user charging, with the issue gaining momentum at August’s Economic Reform Roundtable and ahead of a meeting of state and territory treasurers this week.
Chair of the Transport Australia Society, Scott Elaurant, said the current system for funding roads is under significant pressure and now is the time to bring together expert voices and stakeholders to shape a fairer, more sustainable approach.
“We’re seeing a growing consensus that the way we fund and invest in our transport networks needs to evolve,” Mr Elaurant said.
“Without reform, governments will struggle to maintain and expand the transport infrastructure Australians rely on every day.
“The current model of road funding is based on registration fees, fuel excise, and unevenly applied tolls and it has become unsustainable.
“Our aim with this paper is to invite a genuine, informed dialogue with governments, industry, and the community. We want to work collaboratively to design a system that reflects modern transport needs and values.”
The discussion paper outlines a potential three-layered model for road user charging, intended as a starting point for conversation:
- Base Layer: charges per kilometre travelled, scaled by vehicle weight.
- Emissions Layer: additional charges based on vehicle emissions, with exemptions for electric vehicles.
- Congestion Layer: time and location-based charges to manage peak urban demand.
Mr Elaurant emphasised the importance of public trust and transparency in any reform process.
“Australians deserve a system that is fair, future-focused, and sustainable. Many people stand to benefit from a more equitable approach – especially those currently subsidising heavier road users. We’re committed to working with all stakeholders to help create and communicate a system that serves all Australians.”
Read the full discussion paper, Road Pricing and Transport Investment.
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