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Saturday July 31, 2010

What we're talking about

Pay as you drive tax considered

Posted by: Luca Gonano | 13 August, 2009 - 9:01 AM
A radical suggestion that would see motorists pay taxes based on how far they drive will be considered by a tax review led by Treasury secretary Ken Henry.

A consultant's report has put forward the idea of a user-pays approach to transport charges across the country to ease congestion, particularly in Melbourne and Sydney.

Every Australian vehicle would be fitted with a tracking device of sorts which would monitor the vehicle's travel time every time the driver turned their car or truck on.

The tax would see people driving larger vehicles taxed higher than regular motorists, while those who drove further, at peak times and in certain areas would also be taxed harder.

The tax has been suggested in an effort to cut an estimated $9.4 billion annual cost of congestion, cut Australia's $4 billion road repair bill and promote the further use of public transport.

What do you think? Do you think there is merit in the new tax suggestion?

Blog comments Your Say

  • Fix the public transport???? they have not got a bloody clue as what to do.....so lets tax the motorist more.....more speed cameras......the govt costs are out of control, railway lines falling apart,roads falling apart, stations a health risk...

    mike Sunday 16 August, 2009 - 10:40 AM

  • We already have this in the UK - it's called fuel Duty. around 70% of the cost of fuel here is tax. The larger, more polluting vehicles are taxed more heavily, as they use more fuel, as are the longer distance travellers.
    Why waste money on fitting trackers - sound's like your government's madder than ours (if that's possible)!

    Timo Friday 14 August, 2009 - 7:39 PM

  • Steady up chaps and ladies. We will call it a managed investment scheme and all be entitled to an upfront tax deduction. That is if our lobbyists do their work properly.
    Afterall, if the lobbyists (read ex ALP jockeys) are paid some bucks then like other favoured species in Queensland the general punter will be fine.

    Alphio Thursday 13 August, 2009 - 9:56 PM

  • I am disgusted they are even contemplating such a system as the Pay As You Use Road Plan. Not only because of the "Big Brother" factor, with it being a huge invasion of privacy, but also because it will hit country people far worse than city dwellers, because we have no choice but to travel long distances for such basics as shopping, medical needs, etc. We already pay taxes which are supposed to go towards maintenance of our roads, so why add another one?? Country people pay far more for groceries and petrol so why consider hitting us yet again.

    This is just another money-making scheme aimed at the poor consumer who seems to be getting continually hit from all angles. PLEASE, we must fight against this EVER being brought in.

    Jacquie Thursday 13 August, 2009 - 9:21 PM

  • Another half cocked flawed concept by this government, my 7 year old could do a better job. Idiots!!!!

    Matt Thursday 13 August, 2009 - 8:52 PM

  • Prisoners having "special" visits? Are you kidding me?? Does this go for all crimes they are being punished for. for example, child molesters that are in jail should not even have a penis let along be allowed to use it.
    This is a joke, our whole justice system is a joke. Something needs to be done before we completely go to the dogs.

    Natasha Thursday 13 August, 2009 - 5:45 PM

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