Delivering equitable mobility outcomes through pricing reforms
Australia's transport network pricing arrangements are not working for users, communities or governments:
• People pay to be mobile through vehicle ownership and operating costs and public transport fares. The outcome they experience varies so markedly that they cannot tell if it is value for money.
• When a person's transport choice affects others by adding to congestion or increasing the risk of injury or death, these factors are not reflected in what they pay.
• Australia's transport payments are not tied to, and do not cover, what it costs governments to provide transport infrastructure and services.44 This means the community makes up the difference through the taxation system.
A nationally reformed transport network pricing system would deliver equitable and sustainable mobility outcomes for everyone.
All users would have affordable public transport and active travel choices that provide door-to-door access to jobs and services within an acceptable travel time.
The '30-minute city' A city where most or all people have convenient and sustainable end-to-end access to jobs and major services within 30 minutes. This level of access depends on both land use arrangements and providing transport services and supporting infrastructure. |
In urban areas, this could support the idea of a '30-minute city' or a comparable performance standard.45
" Australia's transport network pricing arrangements are not working for users, communities or governments. "
To be successful, the reforms would have to include planners, operators and end users in the conversation. This would build trust in the process and increase acceptance.
The conversation would need to make it clear that there are risks in not acting, vulnerable people will be protected from unfair financial impacts, and transport revenues will be allocated directly to better services.
Any reforms initiated in one jurisdiction could be adapted and introduced into other states and territories.
Ultimately, a consistent set of national distance-based road use charges should replace petroleum fuel excise revenue. This revenue is diminishing because Australia's total vehicle fleet is getting more efficient and will ultimately become zero-emission.
Other reforms that should be considered are supplementary parking and road user pricing that target congestion in Fast-growing Cities, and rebalanced public transport fares that deliver value for money and more efficient network operations.
4.4 Recommendation Ensure the price paid for mobility supports the efficient movement of people and goods by leading the transition to a nationally coordinated and multimodal transport network pricing regime. Proposed sponsor: Department of Infrastructure, Transport, Regional Development and Communications Supported by: State and territory transport departments, state and territory treasuries | |||
When this should impact: |
| Where this should impact: |
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| 4.4.1 Meet community and stakeholder expectations for transparency and fairness by establishing a nationally consistent governance framework for transport network pricing reforms. Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications Supported by: Australian Treasury, state and territory transport departments |
| Increase confidence in the fairness of the transport network pricing reform process by specifying the minimum level of protection that will be in place during the reform implementation period for users who are at risk of disadvantage for financial or geographic reasons. Reinforce this by nominating the independent agency that will monitor the rollout of user protections in each Jurisdiction. Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications Supported by: State and territory transport departments |
| Increase confidence in the user benefits of transport network pricing reforms by developing and seeking National Cabinet endorsement for hypothecation principles. Under these principles, road and public transport revenues will fund integrated and multimodal programs that deliver sustainable mobility outcomes based on projected user needs. Proposed lead: Australian Treasury Supported by: Department of Infrastructure, Transport, Regional Development and Communications, state and territory transport departments, state and territory treasuries |
| Demonstrate a collaborative approach to the implementation of transport network pricing reforms by developing and seeking National Cabinet endorsement for the principles that Jurisdictions will follow when taking the lead in implementing reforms. These will include a commitment to timely information sharing that facilitates the cross- Jurisdictional co-delivery of reforms. Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications Supported by: State and territory transport departments |
| 4.4.2 Ensure users pay for the true costs of mobility by implementing transport network pricing reforms. Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications Supported by: Australian Treasury, Department of Home Affairs, National Transport Commission, Australian Competition and Consumer Commission, state and territory transport departments |
| Develop state and territory capability to administer an equitable and efficient user-pays charging regime for all vehicle types. Adopt and work towards this objective through the implementation of Heavy Vehicle Road Reform by participating jurisdictions. Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications Supported by: National Transport Commission, state and territory transport departments |
| Support the efficient operation of urban transport networks in Fast-growing Cities by developing and implementing policy frameworks that impose an additional price on vehicle parking and use in areas affected by peak period congestion. Ensure revenues support the provision of alternative travel choices. Proposed lead: State and territory transport departments Supported by: Local governments |
| Develop a national distance-based road user charging regime for all types of vehicles. Ensure the design of the regime addresses risks to privacy and cyber security. Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications Supported by: Australian Competition and Consumer Commission, Department of Home Affairs, state and territory transport departments |
| Maintain at least the level of revenue received from current road user taxes and charges by implementing a national distance-based road user charging regime, with associated changes to the fixed costs of vehicle ownership. Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications Supported by: State and territory transport departments |
| Review and reconfigure city public transport networks to optimise the number of users who can access centre-based jobs and services within a 30-minute or better performance standard. Proposed lead: State and territory transport departments |
| Review and adjust public transport fares to ensure they reflect the quality of travel experience provided and promote efficient network use. To make fares equitable, reduce the cost of journeys requiring: • modal transfer, relative to 'single-seat' journeys • the use of on-road public transport services, relative to rail • the use of non-peak relative to peak services. Proposed lead: State and territory transport departments |
| Develop and implement strategies to upgrade legacy rail networks in Fast-growing Cities and Smaller Cities by increasing revenues from non-transport activities and development outcomes that benefit from proximity to urban rail services. Proposed lead: State and territory transport departments |
| Increase the per-kilometre cost of using regional rail services between Fast-growing Cities and Smaller Cities or Regional Centres when these services are upgraded. Allocate the additional revenue directly to further service improvements. Proposed lead: State and territory transport departments |
Measuring progress
| Transport hypothecation Percentage of transport revenues that are hypothecated for better transport outcomes | ||
Quality | Target: 100% | Timeframe: |
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| User-pays regime A nationally harmonised, equitable and efficient user-pays charging regime across all passenger transport services | ||
Affordability | Target: 100% | Timeframe: |
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| Distance-based road-user charge Percentage of vehicles covered by a distance-based road-user charge | ||
Governance | Target: 100% | Timeframe: |
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