Tailor charges to use

A distance-based charge must apply to the use of all vehicles on Australian roads. The goal is that, ultimately, every vehicle owner and user will end up paying a fair price that reflects the impact of their choices.

There should be a single national framework for road user charges that put a price on these impacts, which will vary according to vehicle and journey type:

  Heavy vehicle use increases road maintenance needs because of pavement damage.

  Fossil-fuel and electric-powered vehicles generate varying levels of emissions and other pollutants during their manufacture and operation.

  All cars and trucks, regardless of their power source, can be involved in costly crashes and creating congestion.

By introducing a national distance-based charge in stages, governments will ensure a timely replacement for Fuel Excise Levy revenues. They will also have a source of funds to hypothecate to road maintenance and upgrades, and to alternative mobility choices.

The national charge would be supplemented by congestion pricing collected by state and territory governments. This will discourage travel during peak periods and fund alternative mobility choices.49