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2 Taxes & Road Funding

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2 Taxes & Road Funding

2.1 Road funding

2.1.1(c) Development and maintenance of the road system (29 June 1998)

Sufficient funds should be provided by all levels of government to maintain and improve the road system to a standard consistent with foreseeable road user demands.

2.1.2 Land use development and transport infrastructure (22 April 1991)

Sufficient funds should be provided for the transport infrastructure required in conjunction with land use development.

2.1.3 Distribution of funds based on need (22 April 1991)

The distribution of funds for roads should be in accordance with commercial, community and road user needs.

Every effort should be made to determine spending priorities on the basis of benefit cost analysis, which should include consideration of social costs and benefits.

The cost of not implementing programmes and schemes should be considered in any evaluation.

2.1.4 Consistency of funding (22 April 1991)

Governments should maintain an orderly programme, of at least five years, for funding roadworks to allow road authorities and road related industries to plan with confidence for future construction initiatives.

2.1.5 Federal government road funds (22 April 1991)

A trust fund based on the principle of an earmarked indexed share of Federal fuel taxes should be used to fund the continuing development of Australia's road system.

2.1.6 Toll facilities (22 April 1991)

The imposition of tolls should be seen as a last resort for financing major improvements to the road system which cannot be financed from existing road funds due to the impact such funding would have on other priorities.

For tolls to be imposed the following criteria should be satisfied:

the toll facility should provide a high standard of design for traffic flow and safety and result in savings in road users' time, crashes and running costs which are greater than the toll paid;
any alternative 'free' facility alongside or in close proximity to the proposed toll facility be retained and adequately maintained depending upon road user demand relative to maintenance costs; and
after allowing for the recovery of capital costs, such toll facilities should revert to public ownership and be free.

2.1.7(c) Road development by private enterprise (29 June 1998)

The involvement of the private sector in road provision is supported. Road construction and maintenance standards should not be compromised. Road authorities should retain ultimate responsibility for all aspects of road design, construction and maintenance.

The use of private enterprise for the financing, design and/or construction of road facilities is supported providing:

adequate standards for design, construction and operation are set and enforced by the appropriate road authority;
the facility results in total savings in road users' time, crashes and running costs greater than the cost of the facility; and
any liability arising from deterioration of the facility be covered by a sinking fund which should be transferred to the public sector when the ownership of the facility reverts to the public.

2.2 Taxes

2.2.1(c) Federal fuel taxes (24 June 2002)

The current federal excise on fuel should be abolished and replaced with a road user charge that reflects the cost to the community such as road wear, crash costs and environmental costs of the use of the motor vehicle.

The federal government should:

Pursue efficient methods to collect the charge
Set up a mechanism to allocate the money collected to the appropriate authorities.

2.2.2(c) Federal and state taxes on motorists (29 June 1998)

Action by Federal and State Governments in imposing sectional and discriminatory taxes upon motorists is strongly opposed. Motorists should not be used as a special source of additional general revenue by any government.

2.2.3 Cost Recovery (24 June 2002)

No tax or charge should discriminate against private motorists.

Equity in the taxes and charges paid by the various classes of vehicles is essential. Within the limits of cost-effective administration, no road user should subsidise any other road user.

Road user charges should give adequate consideration to social, crash, environmental and road maintenance costs.

2.2.4 'User pays' principle (22 April 1991)

The taxes collected by standing charges, such as registration fees and 'pay as you use' charges, such as fuel taxes, should be adjusted so that the 'user pays' principle applies.

2 Taxes & Road Funding

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2.1 Road funding

2.1.1(c) Development and maintenance of the road system (29 June 1998)

Sufficient funds should be provided by all levels of government to maintain and improve the road system to a standard consistent with foreseeable road user demands.

2.1.2 Land use development and transport infrastructure (22 April 1991)

Sufficient funds should be provided for the transport infrastructure required in conjunction with land use development.

2.1.3 Distribution of funds based on need (22 April 1991)

The distribution of funds for roads should be in accordance with commercial, community and road user needs.

Every effort should be made to determine spending priorities on the basis of benefit cost analysis, which should include consideration of social costs and benefits.

The cost of not implementing programmes and schemes should be considered in any evaluation.

2.1.4 Consistency of funding (22 April 1991)

Governments should maintain an orderly programme, of at least five years, for funding roadworks to allow road authorities and road related industries to plan with confidence for future construction initiatives.

2.1.5 Federal government road funds (22 April 1991)

A trust fund based on the principle of an earmarked indexed share of Federal fuel taxes should be used to fund the continuing development of Australia's road system.

2.1.6 Toll facilities (22 April 1991)

The imposition of tolls should be seen as a last resort for financing major improvements to the road system which cannot be financed from existing road funds due to the impact such funding would have on other priorities.

For tolls to be imposed the following criteria should be satisfied:

the toll facility should provide a high standard of design for traffic flow and safety and result in savings in road users' time, crashes and running costs which are greater than the toll paid;

any alternative 'free' facility alongside or in close proximity to the proposed toll facility be retained and adequately maintained depending upon road user demand relative to maintenance costs; and

after allowing for the recovery of capital costs, such toll facilities should revert to public ownership and be free.

2.1.7(c) Road development by private enterprise (29 June 1998)

The involvement of the private sector in road provision is supported. Road construction and maintenance standards should not be compromised. Road authorities should retain ultimate responsibility for all aspects of road design, construction and maintenance.

The use of private enterprise for the financing, design and/or construction of road facilities is supported providing:

adequate standards for design, construction and operation are set and enforced by the appropriate road authority;

the facility results in total savings in road users' time, crashes and running costs greater than the cost of the facility; and

any liability arising from deterioration of the facility be covered by a sinking fund which should be transferred to the public sector when the ownership of the facility reverts to the public.

2.2 Taxes

2.2.1(c) Federal fuel taxes (24 June 2002)

The current federal excise on fuel should be abolished and replaced with a road user charge that reflects the cost to the community such as road wear, crash costs and environmental costs of the use of the motor vehicle.

The federal government should:

Pursue efficient methods to collect the charge

Set up a mechanism to allocate the money collected to the appropriate authorities.

2.2.2(c) Federal and state taxes on motorists (29 June 1998)

Action by Federal and State Governments in imposing sectional and discriminatory taxes upon motorists is strongly opposed. Motorists should not be used as a special source of additional general revenue by any government.

2.2.3 Cost Recovery (24 June 2002)

No tax or charge should discriminate against private motorists.

Equity in the taxes and charges paid by the various classes of vehicles is essential. Within the limits of cost-effective administration, no road user should subsidise any other road user.

Road user charges should give adequate consideration to social, crash, environmental and road maintenance costs.

2.2.4 'User pays' principle (22 April 1991)

The taxes collected by standing charges, such as registration fees and 'pay as you use' charges, such as fuel taxes, should be adjusted so that the 'user pays' principle applies.

2.2.5 Government owned vehicles (22 April 1991)

All governments should pay, in respect of their own vehicles, the same taxes and charges as levied against private and commercial vehicles.