Government backs user-pays road system in fee overhaul
Drivers will face a distance-based road user charge after the state government backed a major long-term fee overhaul.
Victoria
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Motorists would pay a distance-based charge in Victoria instead of fuel and other motoring taxes under a major long-term road reform.
The Andrews Government has backed a plan to start replacing fixed road user charges with “user pays” variable taxes over the next 10 years, beginning with an expansion of its 2.5c per kilometre electric vehicle charge.
The push for reform has been triggered by an expected surge in low emissions vehicles later this decade, which will eat into taxes used by governments to maintain roads.
The Andrews Government has already introduced a per-kilometre charge for electric vehicles, currently set at 2.5c/km — or an average of $330 a year.
Details about how to transition other motorists to a similar scheme would be complex and likely take years to finalise, in partnership with the Commonwealth.
Recommendations made by advisory body Infrastructure Victoria in August were to “replace fixed road user charges with variable distance-based and congestion charges over the next 10 years, by gradually expanding and reforming the existing electric vehicle charge”.
Yesterday the government released its 2021 infrastructure plan and supported the plan in principle but “specific actions are subject to further policy”.
“The Government supports the intent of this recommendation and is considering the long-term effects of the erosion of revenue from the fuel levy as more vehicles move to non-fossil fuels and electric propulsion,” it says.
“The introduction of distance-based charging for zero and low-emission vehicles in Victoria is a first step in ensuring the long-term sustainability of the transport network by making sure everyone pays their fair share to build and maintain our roads.”
A spokeswoman for Treasurer Tim Pallas last night distanced the government from congestion taxes saying it “will not put tolls on existing roads or introduce a congestion tax”.
When Mr Pallas flagged the 2.5c/km EV charge last year he said “this compares to almost $600 a year paid by the average internal combustion engine vehicle owner in fuel excise”.
In the 2021 infrastructure report he says the state is also working with the Commonwealth on reforms to heavy vehicle road user charges.
The Andrews Government rejected 11 of 94 recommendation made by Infrastructure Victoria, including to reserve land for a future cross-city toll road between the Eastern Freeway and CityLink.
In 2015, Premier Daniel Andrews and Mr Pallas killed off contracts for such a road, wasting $1.1bn.
The Morrison Government has promised $4bn to any government that revives the project.
The Andrews Government also rejected a push to scrap the CBD’s free tram zone, and for a congestion charge trial in inner Melbourne.
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