Congestion tax, paid train station parking and user pays registration costs in transport plan

A congestion charge and paid parking at busy train stations are part of the state’s new traffic-busting plan. But one radical change will affect every Victorian.

Cars would be charged for driving into the CBD under a congestion tax. Picture: NCA NewsWire/Sarah Matray

A London-style charge for cars entering Melbourne’s CBD or inner-city streets should be trialled within five years to bust congestion, the government’s infrastructure advisory body says.

Cars driving into the toll zone during busy working weeks would be hit hardest under the Infrastructure Victoria plan, with charges set higher when traffic volumes are higher.

For example, the toll would be lower during summer holidays when fewer people drive into the CBD.

Charges would also be dynamic, meaning that if car speeds slow to a crawl earlier than typical peak hours, congestion costs could rise at the same time to discourage people from adding to traffic.

This is the third time a congestion levy has been recommended to the Andrews government, which set up Infrastructure Victoria to “take the politics out of infrastructure" but has previously rejected the advice.

The Infrastructure Victoria report contains a wide array of transport pricing changes to encourage commuters to change travel patterns.
It recommends off-peak public transport ticket prices be slashed by 50 per cent, bus and tram fares be reduced, and all new tollways have premium charges at peak times.

The most radical recommendation in Infrastructure Victoria’s 30-year blueprint to deal with growing pains would be to overhaul transport pricing statewide.

Within 10 years, the report says fixed charges, such as car registration, should be scrapped in favour of a “user pays” system based on time and distance travelled.
For example, instead of paying hundreds of dollars to register your car, you would pay for the kilometres you travel, which would be priced depending on the time of day and mode of transport.

This system — which has previously been rejected by the government and opposition — would be gradually installed and overseen by a transport pricing adviser.

“Our research shows that comprehensive pricing reforms for roads, public transport and parking is the most effective way to reduce congestion and get the most from the transport system,” the report says.

“Transport network pricing would replace fixed upfront charges and uniform fares with flexible prices set to encourage travel at times, to places and by modes that generate the greatest benefits relative to costs.”

It’s hoped paying for parking at train stations would encourage people to cycle or use shared transport like buses.

The report recommends baby steps to get there, beginning with scrapping the free tram travel zone, reducing off-peak public transport fares, and slashing bus and tram travel costs.

Next steps, within five years, would be to introduce paid parking at “major public transport hubs” to encourage less driving in local streets, a congestion charge trial in the CBD, along with other parking price reforms, and new off-peak and peak charges for new tollways, such as the North East Link.

“A combination of off-peak and lower fares, improved public transport services and road user charging can encourage more people to use public transport,” the report says.

Parking Australia chief executive Stuart Norman slammed the parking and congestion charges as “lazy recommendations” that lacked evidence.

Originally published as Congestion tax, paid train station parking and user pays registration costs in transport plan