Tackle congestion

As Figure 1.4 shows, Australians rely on car travel. Before the pandemic, city congestion was a significant problem and is likely to worsen in coming years.42 Infrastructure Australia's modelling in 2019 estimated road congestion and public transport crowding cost the Australian economy $19 billion in 2016. It also showed that, without continued infrastructure investment, the cost would more than double by 2031 to reach $39.8 billion.43

The pandemic drastically reduced city congestion as people stayed at home in large numbers. Now the Australian recovery is underway, the same challenges are returning at an even more rapid pace.

To mitigate the impacts of congestion now and in the future, governments must use a combination of strategies. These should include strategic land use planning, investment in mass transit solutions, and pricing urban mobility to better reflect the network impacts of individual choices. For more information on these reforms, see the Transport chapter.