Income-Based Road Tolls Pitched to Make Road Use Fairer

Income-Based Road Tolls Pitched to Make Road Use Fairer
Traffic levels across the Sydney Harbour Bridge are consistently high being a vital transport corridor for Sydneysiders . Sydney Harbour Bridge on June 13, 2013 in Sydney, Australia. David Rogers/Getty Images
AAP
By AAP
Updated:
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A major think tank is calling for income-based road tolls and higher charges for those with good access to public transport who use their cars instead.

With the introduction of a per-kilometre road user charge, drivers would be encouraged to use their cars less, cutting down on traffic and emissions, a report by the Committee for Sydney has argued.

“Just as we pay a fare to catch the train, ferry or bus, we should also pay a fare to drive on the roads,” report author and committee public policy advisor Harri Bancroft said.

She said the only way to cut down on congestion and get more people to use alternative means of transport was to put a price on road use.

To ensure fairness for those in low-density areas whose only option was to drive, the charge could take into account ease of access to public transport and could also be based on household income, the report said.

Concessional rates could also be considered for road users such as truck drivers, tradespeople, carshare vehicles and carers.

Ms. Bancroft noted the federal government would likely be looking to introduce road-use charges to compensate for the loss of fuel excise as people shifted to electric vehicles.

While the proposed strategies might be unpopular, the aim was to encourage people to use their cars less, which she said was the only viable option as populations in urban centres grew.

The report was made in a submission to a major New South Wales (NSW) government review of road tolls led by former Australian Competition and Consumer Commission chair Allan Fels.

Ms. Bancroft said the review was an opportunity for NSW to lead the country in ambitious and meaningful toll reform.

“While much of the public debate on tolls has been focused on the cost of them, we have not been considering the cost of the alternative - traffic,” she said.

“Everyone loves to hate them, but reducing tolls will simply shift the cost of driving from people’s pockets to people’s time.”

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