Soon, even more funding for road infrastructure will have to come from sources other than the Fuel Excise Levy, which is decreasing. States and territories should work together to deliver pricing reforms incrementally under a nationally coordinated process.
The Victorian, South Australian and New South Wales governments have already announced their intentions to make Australia's first move towards a distance-based light vehicle road user charging system.
This will initially be for electric and plug-in hybrid road vehicles.
In Sydney and Melbourne, other initiatives are on the agenda to address the impacts of congestion and promote a shift in Journey times to less congested periods, when drivers experience fewer delays.
Congestion pricing can take different forms. They could include a levy on the cost of car parking in a centre and paying a fee to drive into a central business district or other congested location at peak times.
Car parking levies are already in place for some Greater Sydney business districts and for central Melbourne. Levies could help to address congestion in other cities while more technologically complex interventions are developed, with revenues going towards improving alternative public transport and active travel choices.
Australia's transport pricing system is complex, so there should be a staged approach to changing it incrementally across the country that is transparent, fair and user-focused (see Figure 4.13).48
This approach will build trust and support continuous improvement.
Under a nationally agreed approach coordinated by the Australian Government, states and territories would learn from each other's reform developments. Reforms from one location could be adapted and transferred to others, as occurs in Sydney and Melbourne.
" Australia's transport pricing system is complex, so there should be a staged approach to changing it incrementally across the country that is transparent, fair and user-focused. "
As reforms roll out, transport departments should develop the administrative capability to operate new and diverse transport pricing and charging systems. This will build on their experience of participating in the Heavy Vehicle Road Reform project.