Congestion tax back on the agenda

[vztrt]

http://www.goauto.com.au/mellor/mell...2578DF0026E2EB

Federal discussion document revives Henry review’s congestion tax recommendation

1 August 2011

By HAITHAM RAZAGUI

THE federal government has put a vehicle congestion tax on the agenda for a tax forum scheduled in October, reviving a recommendation from last year’s Henry tax review that a ‘road-user charge’ be introduced in Australia.

The proposed tax, which is widely supported by Australia’s motoring associations, resurfaced in a discussion paper released last week by treasurer Wayne Swan, which asks the question: “Is there a case to more closely link road charging to the impact users have on the level of congestion on particular roads?”

It also suggests discussion of whether Australia should “consider ways to more closely link road charging to the impact users have on the condition and upkeep of roads”.

The road transport tax section of the document focuses on the doubling of road freight during the past 20 years and the implications of a projected further doubling by 2030.

It cites concerns over road wear and the lack of incentives for operators to “choose routes and vehicle configurations that minimise road damage and costs on others”.

It goes on to say the Council of Australian Governments is “considering reforms to road charging and funding based on giving better incentives to operators by charging heavy vehicles on the basis of their mass, the roads they use, and the distance travelled”.

Citing the 2010 Henry taxation review’s recommendation that governments consider introducing congestion charges like those introduced in European cities such as London and Stockholm, the paper suggests that ensuring “better utilisation of existing infrastructure” is as important a measure for addressing congestion as building more roads.

Interestingly, although the discussion paper refers to the Henry report’s suggestion of implementing a congestion tax, it continues to ignore the same report’s recommendations on the abolition of the Luxury Car Tax.

The Federal Chamber of Automotive Industries has said it would be willing to consider supporting the controversial road-user charge as long as other imposts on motorists such as stamp duty on motor vehicles, fuel excise and registration charges are also on the table for discussion.

FCAI acting chief executive Steve Payne today declined to comment until the organisation had seen exactly what the government has in mind.

“It’s better for us to see what the government is proposing with the whole array of transport taxes and their interaction with the carbon tax,” he said.

Australia’s motoring organisations, including the Australian Automobile Association and its member bodies such as the NRMA, RACV and RACQ, have also been keen to pursue the implementation of the road-user charge system.

The AAA was unavailable for comment today, but when the Henry review was published in May 2010 incumbent AAA chief executive Mike Harris welcomed its proposals and said it would make strong representations to the federal government seeking a specific timeline on the introduction of road-user charges.

Other subjects for discussion in the document include taxing LPG, LNG and CNG road-fuels “but with a 50 per cent discount that recognises the potential environmental and fuel security benefits of their use”, plus the reform of the Fringe Benefits Tax announced in May’s federal budget announcement.

On Thursday, the Sydney Daily Telegraph newspaper carried a front-page report that the federal government is considering congestion charging and other changes “on top of the carbon tax”.

In response, prime minister Julia Gillard has ruled out federal support for a congestion tax. She told reporters in Geelong on Friday that the Daily Telegraph report was “entirely a work of fiction”.

“I hope they enter it for one our fiction prizes in Australia; we have a number and they may have a winning entry,” she said.

“The federal government has ruled out support for congestion taxes in the past, and we have ruled it out again.”

However, Ms Gillard alluded to the fact that states and territories may be free to independently impose congestion charging by saying: “In any event, these are questions for state governments.”

Opposition treasury spokesman Joe Hockey questioned the prime minister’s denials, saying: “Even if Julia Gillard gives an iron-clad commitment there will be no carbon tax under the government she leads, there will be no congestion tax under the government she leads, who can believe her?”

In an interview published on the Liberal party’s website, opposition leader Tony Abbott hit out at the fact the Coalition had not been invited to the forum.

“Typically for this government, there are academics, there are unions, but the largest group of parties in the parliament, the Coalition, has not been invited to attend,” said Mr Abbott.

“It’s typical of a government, which is only interested in talking to the people who it thinks agree with it.”

[g220ba]

The country's broke through extreme mismanagement so of course they want to try and introduce as many taxes as they possibly can.

[Yellow_Festiva]

Congestion tax? What a joke.... We have some of the worst public transport I have seen in a developed country.. hell, even 3rd world countries put us to shame.

How bout they make catching a bus or train into the city (or wherever) cheaper than driving.....

[Franco Cozzo]

I support the congestion tax.


ONLY ON ONE GROUND:

ALL MONEY GAINED GOES INTO PUBLIC TRANSPORT.

I absolutely hate driving in Melbourne, so I stick to the trains or legging it within the CBD when I have to traverse that big, dirty, old ghetto. Last time I attempted to drive in there was in 1st gear, clutch in, clutch out, clutch in, clutch out, clutch in, clutch out in a manual VY Commodore with the worst shift mechanism and clutch known to mankind.

I'd love to push everyone onto public transport but unfortunately it sucks, big time. VLine isn't bad, the trains are comfortable, they aren't full of graffiti and they tend to run on time in my neck of the woods. Metro on the other hand, last time I was on one of their trains it was making creaking and groaning noises, the windows where scratched to crap with swastika's and initials, there was tagging all over the floor in black spraypaint and I sat in someones vomit. They seem to change the trains all the time, its not uncommon to go from Southern Cross to Flinders Street to only have the train go back to Southern Cross because they decided to change it to another line half way there.

Theres no police presence in the stations at all, so you always get hassled by lowlifes for cash/smokes or people just looking for fights. If you can't spare police and don't want to hire more, put armed security guards all over the place or something.

I try to keep out of the place, but I have no choice for TAFE as I have to get to Richmond, the "trendy" and expensive Melbourne suburb, which is full of junkies.

I have a health care card, so it only costs me $26.70 for the week on VLine, which covers zones 1 and 2 on trains/buses and trams in Melbourne. Its like $56 or something without.

[g220ba]

Originally Posted by Big Damo

I support the congestion tax.


ONLY ON ONE GROUND:

ALL MONEY GAINED GOES INTO PUBLIC TRANSPORT.

Frankly with the track record all governments have in terms of promises of this nature, that'll never happen. They'll promise it but when push comes to shove the money will be wasted on ridiculously stupid projects.

Add to that the fact that the public transport system is absolutely useless due to lack of spending years ago when they had the chance. It seems as a country we're always playing catch-up, no forsight in terms of any major projects. After going to the boxing day test last year by train i swore i'd never get on another train in melbourne until things change massively. The arrogant people, the overcorwded carriages, the smell in the carriage all small reasons why i'd rather drive or pay the extra for a cab(the smell can be pretty bad aswell though).

[Elks]

Originally Posted by Big Damo

I support the congestion tax.


ONLY ON ONE GROUND:

ALL MONEY GAINED GOES INTO PUBLIC TRANSPORT.

x3

I Live in the eastern suburbs of Melb and work in the industrial west (Laverton). My journey to work takes me through the tunnel at the edge of the city, and takes 40 ish minutes. Even if i was willing, there is no way to get there by public transport even if I allowed double that time.

Its like the carbon tax, We all want clean air, but will a new tax achieve that result?

Our previous state govt has locked us into a ticket system that's years late, over a billion dollars over budget, and still doesnt work.

I hold little hope....

[sudszy]

Originally Posted by Elks

x3

I Live in the eastern suburbs of Melb and work in the industrial west (Laverton). My journey to work takes me through the tunnel at the edge of the city, and takes 40 ish minutes. Even if i was willing, there is no way to get there by public transport even if I allowed double that time.

Its like the carbon tax, We all want clean air, but will a new tax achieve that result?

Our previous state govt has locked us into a ticket system that's years late, over a billion dollars over budget, and still doesnt work.

I hold little hope....

Given that the moment we talk about improving rail infrastructure, impasses are met everywhere,( new lines have to go somewhere), and most australians still think that they have a birthright to drive anywhere in their car ......improvements to public transport simply arent going to happen.

In the meantime, we have people crisscrossing the city simply to go to their jobs because 'they can' causing unnecessary congestion. Make it more expensive to do that and they'll look elsewhere for employment or not consider the job that will cost them $10+ in tolls a day in the 1st place. They'll also be more vocal on electing governments that do something about public transport, rather than just putting in more freeways that become grid locked day after opening.

In your own case, yes there will be perhaps short term hardship, but at the end of the day there will be the same amount of jobs to go around, people will have to make harder decisions about where they choose to live and work.

[prydey]

Originally Posted by sudszy

Given that the moment we talk about improving rail infrastructure, impasses are met everywhere,( new lines have to go somewhere), and most australians still think that they have a birthright to drive anywhere in their car ......improvements to public transport simply arent going to happen.

In the meantime, we have people crisscrossing the city simply to go to their jobs because 'they can' causing unnecessary congestion. Make it more expensive to do that and they'll look elsewhere for employment or not consider the job that will cost them $10+ in tolls a day in the 1st place. They'll also be more vocal on electing governments that do something about public transport, rather than just putting in more freeways that become grid locked day after opening.

In your own case, yes there will be perhaps short term hardship, but at the end of the day there will be the same amount of jobs to go around, people will have to make harder decisions about where they choose to live and work.

once again you leave little doubt where your allegences lie!!

with so many jobs on offer, people should only look for work close to home so they don't have to traverse across town and 'congest' the roads. how inconsiderate that someone should accept a job that is a reasonable distance from their home. newsflash, jobs are hard to come by for many industries and many people are just grateful for whatever employment they can get. if a person can only find employment 'across town', should they then pull up stumps and move to that area to live??

seriously, some of your arguments have very little logic and very little empathy toward those who live and struggle in the real world.

[DJM83]

Originally Posted by sudszy

Given that the moment we talk about improving rail infrastructure, impasses are met everywhere,( new lines have to go somewhere), and most australians still think that they have a birthright to drive anywhere in their car ......improvements to public transport simply arent going to happen.

In the meantime, we have people crisscrossing the city simply to go to their jobs because 'they can' causing unnecessary congestion. Make it more expensive to do that and they'll look elsewhere for employment or not consider the job that will cost them $10+ in tolls a day in the 1st place. They'll also be more vocal on electing governments that do something about public transport, rather than just putting in more freeways that become grid locked day after opening.

In your own case, yes there will be perhaps short term hardship, but at the
end of the day there will be the same amount of jobs to go around, people will have to make harder decisions about where they choose to live and work.

You clearly have no interest in motoring or anything to do with being an enthusiast all you do is post to the detriment of what this forum is about

[MAD]

Originally Posted by sudszy

Given that the moment we talk about improving rail infrastructure, impasses are met everywhere,( new lines have to go somewhere), and most australians still think that they have a birthright to drive anywhere in their car ......improvements to public transport simply arent going to happen.

In the meantime, we have people crisscrossing the city simply to go to their jobs because 'they can' causing unnecessary congestion. Make it more expensive to do that and they'll look elsewhere for employment or not consider the job that will cost them $10+ in tolls a day in the 1st place. They'll also be more vocal on electing governments that do something about public transport, rather than just putting in more freeways that become grid locked day after opening.

In your own case, yes there will be perhaps short term hardship, but at the end of the day there will be the same amount of jobs to go around, people will have to make harder decisions about where they choose to live and work.

The majority of the highest paid positions are located in the CBD.
Engineering firms, accounting firms, law firms, docks, banks.
Should people be forced to move closer and pay more for their house, or should they take a pay cut and work 10 mins from home in Tyabb?

I think people are crazy that drive (if you could call it that) to the city everyday for work, but they certainly shouldnt be forced to change.

[Polyal]

Originally Posted by Elks

x3

I Live in the eastern suburbs of Melb and work in the industrial west (Laverton). My journey to work takes me through the tunnel at the edge of the city, and takes 40 ish minutes. Even if i was willing, there is no way to get there by public transport even if I allowed double that time.

Its like the carbon tax, We all want clean air, but will a new tax achieve that result?

Our previous state govt has locked us into a ticket system that's years late, over a billion dollars over budget, and still doesnt work.

I hold little hope....

I feel sorry for you guys on the east, it would be hell coming in on the East link everyday...the Calder is getting worse aswell.

What annoys me the most is that when the east link was built why the hell did they not plan for a train line straight down the guts of it! Work on the infrastructure and get people on it. Or even some electrified system...just something.

Oh hang on, I know why, because they will be tolling people on that road for the next 20 years and making a freakin killing.

Australia is not serious, at all, about public transport.

[TheInterceptor]

I am the Australian Govornment. I can fix everything with a tax.

[EB#]

Originally Posted by TheInterceptor

I am the Australian Govornment. I can fix everything with a tax.

How about a congestion tax on checkout queues at the supermarket ?

[gtfpv]

what alternative transport road can any truck leaving a port in any major city take ? answer :NILL
AND AS FAR AS ROAD USAGE PAYMENTS . i thought we already had that in the form of greenslips , tolls , levies , registration, and fuel tax . along with revenue .

[new2ford]

Originally Posted by gtfpv

what alternative transport road can any truck leaving a port in any major city take ? answer :NILL
AND AS FAR AS ROAD USAGE PAYMENTS . i thought we already had that in the form of greenslips , tolls , levies , registration, and fuel tax . along with revenue .

What, all trucks from Port Botany go through the Sydney CBD? Congestion charging relates to city centres, not entire metropolitan areas. Incidentally, Port Botany, Port Hunter and Port Kembla are all served by rail. Jooliar is putting the carbon tax on rail and public transport straight away but giving private motorists and trucks a holiday from it - which shows it is not about the environment at all, just political opportunism.

Cars shouldn't be in city centres so there will have to be some form of control developed. Parking limitation would be more subtle and more effective. That's what they do in many of the best European cities, there's no point driving to the city centre because there's simply nowhere to park. But their public transport is excellent so you can "park and ride" very effectively. I do agree the public transport has to be up to the job first - which it arguably is (at least to the CBD) in Sydney and Melbourne but not other Australian cities.

[PHATXR8]

"In response, prime minister Julia Gillard has ruled out federal support for a congestion tax. She told reporters in Geelong on Friday that the Daily Telegraph report was “entirely a work of fiction”."

This is from the same Prime Minister who said there would never be any Carbon Tax under any Government that she led..... The only fiction is the perpetual rubbish that comes out of her Greeno/Commie mouth!

[FordFalconBF]

Originally Posted by PHATXR8

"In response, prime minister Julia Gillard has ruled out federal support for a congestion tax. She told reporters in Geelong on Friday that the Daily Telegraph report was “entirely a work of fiction”."

This is from the same Prime Minister who said there would never be any Carbon Tax under any Government that she led..... The only fiction is the perpetual rubbish that comes out of her Greeno/Commie mouth!

Didn't she say something similar about the carbon tax?

[SM1DY]

Originally Posted by FordFairlaneAU

Didn't she say something similar about the carbon tax?

Didn't John Howard say something similar about the GST???

[FordFalconBF]

Originally Posted by SM1DY

Didn't John Howard say something similar about the GST???

Yeh, your right.. they are all lying bastards!

[gtxb67]

Originally Posted by FordFairlaneAU

Yeh, your right.. they are all lying bastards!

howard was at worst being economical with the truth in regards to the gst. the fact is, he went to an election based on it - and won, so the people did not think it was worse than the opposition equivalent. the other two taxes in question were not put to an election - in fact, at least one was never going to happen during the election

[kaniSS]

Originally Posted by SM1DY

Didn't John Howard say something similar about the GST???

Yes but John Howard gave us a chance to vote for it.

[burnz]

Originally Posted by kaniSS

Yes but John Howard gave us a chance to vote for it.

on the proviso of removing wholesale tax, fuel levies, cartage/haulage tax, an increase if federal road funding..

what did we get? SFA...shafted.

[mik]

Originally Posted by kaniSS

Yes but John Howard gave us a chance to vote for it.

that`s not how i remember it, what i remember was just before the election a journo cornered Mr Howard and asked "will there be a GST, to which he looked at the camera and replied "there will be no GST while i am PM" ....................................and now it`s 2011, the people in power have changed but the methods dealing with the citizens have not sadly.

[chevypower]

Originally Posted by SM1DY

Didn't John Howard say something similar about the GST???

Didn't John Howard announce that he would implement the GST if re-elected? The difference being that he had the balls to take it to an election.

[Jim Goose]

Originally Posted by chevypower

Didn't John Howard announce that he would implement the GST if re-elected? The difference being that he had the balls to take it to an election.

er NO he didnt.... he said that under his coalition there would NEVER be a GST.

[gtxb67]

Originally Posted by chevypower

Didn't John Howard announce that he would implement the GST if re-elected? The difference being that he had the balls to take it to an election.

yes he did. he was re-relected in 98 using the gst as the major policy. we all knew if howard was pm, we would get a gst. he did say previously he would not do it, but for the election that mattered, we knew what his plans were

in short, if australia did not want a gst, they would have voted for the other party

[mik]

Originally Posted by chevypower

Didn't John Howard announce that he would implement the GST if re-elected? The difference being that he had the balls to take it to an election.

no he did an about face just like some one else..

[aussie muscle]

Originally Posted by PHATXR8

This is from the same Prime Minister who said there would never be any Carbon Tax under any Government that she led.....

but roads and road taxes are the domain of state governments. the feds don't have much hand in roads (except where they've put in money to the 'black spot program') apart from trucking "federal interstate" rego. i'm surprised at the number of people who blame bad hospitals and roads on julia and gov co, during the last federal election. (they did teach this stuff when i was in school).

[SM1DY]

I'm a small mined individual from a dank, dark hall-way closet looking for something to complain about.....ah congestion tax!!! That shall do nicely : )

[V8XTasy]

from what Julia said, it sounds like she's a firm supporter of the tax (no means yes!).

So we would then be charged for being stuck in traffic, caused by poorly planned roads on the way work, whilst paying tax on the fuel, tax on the carbon emissions, tax on the car were in, tax to use the road, tax on our income when we finally get to work, tax on......etc