Australians could soon know what kind of tax they’ll pay to drive on the nation’s roads, with a new Road User Charge now a step closer after a three-day productivity roundtable in Canberra.
Treasurer Jim Chalmers said the talks produced strong support for a charge on road use, though no final model has been decided.
“Right around the table, people had a view that this is an idea whose time has come and so we will do that work,” Chalmers said.
An options paper will be presented to state and territory treasurers on September 5. Chalmers said there is “a lot of conceptual support” for the move and that “a lot of the hard work begins now.”
Necessary for Replacing Lost Income
The government says revenue from the fuel excise is dropping as more Australians switch to hybrid and electric vehicles. The charge would help replace that lost income and ensure funding for road maintenance and infrastructure.
“It does, I think, encourage us down that path. But as you know, this is something we’ve been working on for a little while as well. We’ve got some good views, some good input. We’ll work with the states and territories to try and work out the best model on the best timing,” Chalmers said.
Broader Reform Still on the Table
The roundtable also covered broader tax reform, but no consensus was reached. Chalmers acknowledged Australia’s tax system needs improvement, especially for younger generations.
“Our tax system is imperfect and one of its most troubling imperfections is best seen through an inter-generational lens,” he said. “Almost everybody around the table had a similar view, which is we take our responsibilities to the coming generations seriously.”
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