Modern Australian
The Times Real Estate

.

National road-user charges are needed – and most people are open to it, our research shows

  • Written by Hussein Dia, Professor of Future Urban Mobility, Swinburne University of Technology
National road-user charges are needed – and most people are open to it, our research shows

The High Court ruled last week that Victoria’s road-user charge for electric vehicle (EV) drivers is unconstitutional. Because the court decided it’s an excise, only the Commonwealth can now impose such a tax.

The Victorian government introduced the controversial distance-based charge in 2021. The court decision will likely derail similar plans by other states.

Current road taxes are blunt instruments that don’t reflect the true costs of driving to society. The fuel excise does not properly account for traffic congestion or emissions. It makes no allowance for people’s ability to pay. Car registration fees are also not related to the amount of travel, congestion or emissions produced by driving.

Hence the need for road-user charges. To understand public attitudes to such charges in Australia, we surveyed more than 900 people in Melbourne and Sydney. The results of this research showed a good appetite for road taxation reform in the nation’s two largest cities.

Only about a third of respondents opposed road-user charges to reduce traffic congestion in their cities. And support increased when they were told the revenue would be used to improve traffic infrastructure and public transport. The findings offer insights into how road-user charging could be rolled out successfully across the nation.

Read more: It's good the High Court overturned Victoria's questionable EV tax. But there's a sting in the tail

What do people think about road-user charges?

For our research, we surveyed a representative sample of 929 people (373 in Melbourne and 556 in Sydney) in April 2022 (Melbourne) and November 2022 (Sydney).

A majority of respondents (70% in Sydney and 65% in Melbourne) supported the introduction of measures to reduce traffic congestion in their respective cities.

When specifically asked if they would support road-user charges, only 32% of respondents in both cities opposed the idea. Around 29% of respondents in Sydney and 34% of respondents in Melbourne were undecided.

They were then told the revenue raised would be used to improve all forms of transport infrastructure and services. Levels of opposition and uncertainty fell.

Stacked bar chart showing percentages supporting, opposing or undecided about road-user charges depending on where revenue is invested.
CC BY In particular, respondents in both cities were most supportive of road-user charges if the revenue raised was used to improve public transport. Opposition fell to 20% in Sydney and to 23% in Melbourne. The percentage of undecided respondents fell to 24% in Sydney and to 30% in Melbourne. Pie charts show percentage of respondents supporting, opposing or undecided about road-user charges if revenue is spent on improving public transport CC BY Around 96% of respondents in Melbourne owned a private car, compared to 90% in Sydney. These cars were the main means of transport for most respondents (75% Melbourne, 64% Sydney). Average vehicle occupancy was 1.25 people per vehicle in Melbourne and 1.27 in Sydney. Sydney had a higher proportion of public transport users (27% Sydney, 16% Melbourne). Around 7% of respondents in both cities preferred walking and micro-mobility, such as bikes and scooters, as their main means of getting around. Horizontal bar chart showing preferred forms of transport (by percentage of respondents) in Melbourne and Sydney CC BY Read more: The High Court decision on electric vehicles will make charging for road use very difficult Savings affect willingness to pay road-user charges We found willingness to pay a road-user charge varies with the level of expected savings. Around 66% of respondents in both cities were willing to pay a road-user charge if it saved them up to $800 a year on registration fees and fuel taxes. Another 13% of respondents in Sydney and 11% in Melbourne were willing to pay the charge if savings exceeded $800 a year. Around 55% of respondents in Sydney and 46% in Melbourne would be willing to pay a congestion charge if it cut their total daily travel times by 10 to 30 minutes. Another 18% of respondents in both cities would pay the charge if it cut travel times by more than 30 minutes. Jonas Eliasson, architect of Stockholm’s congestion pricing scheme, explains how subtly nudging just a small percentage of drivers to stay off major roads can end traffic jams. Read more: Will drivers who paid Victoria's electric vehicle tax be able to get their money back? Why oppose road-user charges? Many factors influence public opposition to road-user charging. These include distrust in governments, uncertainty about benefits, and concerns over equity. Other barriers include understanding how the scheme works, complexity of implementation, and uncertainty about how revenues will be used. In our survey, the undecided respondents said they needed more information to better understand the user-pays approach and its benefits. International studies have reported the same response. Information campaigns to demystify road-user charging and highlight its benefits can win over undecided people. Road tax system is broken The road taxes in place today – which include fuel excise and motor vehicle ownership taxes – are near breaking point, according to political, policy and business leaders. Soaring electric vehicle sales will hasten the decline in fuel excise revenues. Victoria’s levy of 2.8 cents for each kilometre travelled (2.3 cents for plug-in hybrids) was intended to raise revenue from drivers who don’t pay fuel excise. The High Court decision has prompted warnings of major hits to state coffers. Tax reviews, peak bodies such as Infrastructure Victoria and experts have long called for road-user charges to replace current road taxes. Aside from the decline in revenue, another problem with fuel excise is that drivers with different travel patterns pay the same tax. There will be drivers who travel in regional Victoria or in an outer suburb of Sydney for local shopping or school drop-offs who pay the same excise as a driver who travels into the city centre or other congested areas. This means fuel excise is less effective for reducing traffic congestion and emissions than road-user charges. But to be effective and fair, these must be applied to all vehicles as part of a holistic national approach. It will help to manage travel demand, cut emissions and raise revenue to maintain transport infrastructure. Read more: Distance-based road charges will improve traffic — and if done right won't slow Australia's switch to electric cars The road ahead The High Court decision has placed road taxation reform squarely on the national agenda. But any road-user charging scheme that targets only electric vehicles would be a missed opportunity for meaningful reform. Our survey findings show Australia is ready for a rational and transparent discussion about road-user charging on all vehicles, not only electric vehicles. The findings show a majority of people would support such charges if they are transparent, equitable and replace or reduce other road taxes. Support would increase if the public is assured the revenue will be used to improve all transport infrastructure, not only roads. If well planned and implemented, a national approach to road-user charges can raise enough revenue to replace the fuel excise tax. It will also ease congestion, promote sustainable transport and help achieve Australia’s targets for cutting transport emissions. Authors: Hussein Dia, Professor of Future Urban Mobility, Swinburne University of Technology

Read more https://theconversation.com/national-road-user-charges-are-needed-and-most-people-are-open-to-it-our-research-shows-215992

Functional and Fashionable: The Rise of Ladies Workwear in Australia

A perfect change in the Australian workforce has been happening in recent days. Women are contributing a lot in the male-dominated workplaces. They ...

Concrete Trailer Pump for Sale: Your Ultimate Solution for Efficient Concrete Placement

In construction projects where efficiency, precision, and flexibility are paramount, concrete trailer pumps for sale stand out as an essential piece...

Exploring Different Types of Solar Panels: Monocrystalline, Polycrystalline, and Thin-Film

The demand for solar energy continues to grow as more Australians embrace sustainable energy solutions. A crucial step in transitioning to solar pow...

Common Mistakes in Food and Wine Pairing (And How to Avoid Them)

Pairing food and wine is often considered an art, but it doesn’t have to be intimidating. The right pairing can elevate a dining experience, while...

Wine Tasting 101: A Beginner’s Guide to Smelling, Swirling, and Sipping

Wine tasting is an art form that can seem daunting to beginners, but with a little knowledge and a lot of enthusiasm, anyone can master the basics. ...

How to Fix a Clogged Shower Drain: Tips for Homeowners

A clogged shower drain is a common household issue that can be both frustrating and inconvenient. Over time, hair, soap scum, and other debris can a...

Top Trends in Electric Recliner Sofas for 2024

Electric recliner sofas have taken center level in the world of furniture layout, combining consolation, comfort, and superior generation. As we pas...

Setting Up the Perfect Home Studio for Drummers

Creating the perfect home studio for drumming is a fulfilling project that goes beyond just having a space to practice. A well-designed studio can a...

Essential Guide to Surveying Services for Land and Construction

Surveying is indispensable in all land development, real estate transactions, and construction. The core of surveys, including metric geodetic and pre...

A Step in the Right Direction: Choosing the Best Nursing Shoes and Socks for Australian Healthcare Workers

Australian healthcare professionals need to work long hours for the people. They have to be on their feet in demanding situations. So, it will be ne...

Understanding Modern Art Movements – Surrealism, Cubism, and Beyond

Modern art movements have always challenged conventions, pushing the boundaries of creativity and expression. From the fragmented perspectives of Cu...

10 Classic Dumpling Recipes to Try at Home

Dumplings are a universal delight, found in cuisines across the globe. From delicate folds to rich fillings, these versatile creations bring people ...

10 Essential Strategies for Effective Branded Advertising Campaigns

In the fast-paced world of marketing, creating an impactful branded advertising campaign is key to standing out and forging meaningful connections w...

The Evolution of Real Estate Software – From Basic Tools to Advanced AI

The real estate industry has undergone a seismic shift over the past few decades, with technological advancements playing a pivotal role in transfor...

What is RPL in Australia?

RPL is Recognised Prior Learning and refers to skills you already have that can be credited for further study or learning. For example, previous c...

Why 1/4 Zip Jumper Is Trending

The 1/4 zip jumper becomes the new status symbol. Yes, people like them. So, they are in demand nowadays. These jumpers are simple garments with a z...

The Complete Guide to Downsizing Your Home

Making the decision to downsize your home is a significant life change that can feel overwhelming at first. Whether you're empty nesters looking to si...

Why Gym Classes in Wollongong Are Perfect for Fitness Enthusiasts

Wollongong gym programmes offer a variety of training options catered to different ages, fitness levels and individual objectives. To support you...