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Victoria Puts Road Funding On Sustainable Path

26 May 2021Roads Australia (RA), the peak body for roads within an integrated transport system, says the Victorian Parliament’s passage of the Zero and Low Emission Vehicle Distance-based Charge Bill 2021 will help make sure the state can pay for future road infrastructure, while still encouraging uptake of zero emissions vehicles (ZEVs).

Recent investments made by the Victorian Government are an exemplar of how to strike the right balance between supporting the shift to ZEVs and making certain those driving such vehicles make an appropriate contribution to the construction and maintenance of road infrastructure,” said RA President Michael Bushby.

“Fuel excise was always intended to fund the construction and maintenance of our road networks. However, as vehicles have become more fuel efficient, the proportion of revenue generated by fuel excise has fallen.”

“The Commonwealth Parliamentary Budget Office has previously noted that revenue from fuel excise declined from 1.6 per cent of GDP in 2001/02 to 1 per cent in 2016/17. Unless this decline is arrested, Australia will find itself unable to pay for the delivery and maintenance of necessary modern road infrastructure.”

“Victoria should be congratulated for adopting a policy approach that simultaneously incentivises ZEV uptake and provides greater certainty around the future funding base for road infrastructure. It is a mature and considered approach to a challenge that will ultimately confront all governments.”

“Roads Australia encourages other jurisdictions to consider the Victorian Government’s approach – and to pursue the development of a fair, nationally consistent road user charging model capable of supporting efficient, safe and sustainable road infrastructure.”

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Roads Australia Insider - 27 May 2021