The Transport Australia Society has released a discussion paper seeking to foster a national conversation on the future of road pricing and transport investment in Australia.
The Transport Australia Society, part of Engineers Australia, provides a forum for debate and informed discussion on transport policy, planning and delivery.
The society sees an increasing need to find sustainable, long-term funding models for Australia’s roads, with a decline in fuel excise revenue and an uptick in electric vehicle ownership.
The Australian Government’s Intergenerational Report 2023 has stated that unless action is taken, fuel excise revenue will fall to zero after 2050, leaving a $26 billion annual funding gap for roads and transport infrastructure.
The release of the society’s discussion paper, Road Pricing and Transport Investment, comes as Federal Treasurer, Dr Jim Chalmers MP, said there was a need to introduce a new system of road-user charging.
That issue gained some traction at the Economic Reform Roundtable in August and leading up to this month’s State and Territory treasurers meeting.
Transport Australia Society Chair, 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,” he 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 society’s 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.
Scott Elaurant emphasised the importance of public trust and transparency in any reform process.
“Australians deserve a system that is fair, future-focused, and sustainable,” he said.
“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 more news about funding for roads.
