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National Peak Motoring Body Welcomes ACCC Chair’s Call for Reform

4.9.2015

Australia's peak motoring body, the Australian Automobile Association (AAA), has welcomed today’s comments by ACCC Chairman, Rod Sims, highlighting the need to reform transport funding.

“Today’s comments by the ACCC Chairman reinforce the need to link revenue raised from motorists with investment in transport infrastructure,” AAA Chief Executive Michael Bradley said.

“Motorists pay a significant amount of tax to keep their cars on the road but do not receive a fair or transparent return for what they contribute. It is particularly encouraging that Mr Sims has called for all revenue raised from road users to be specifically used to fund transport infrastructure.”

“AAA multi-decade analysis shows that less than 50 cents in the dollar paid by motorists in fuel excise is finding its way back into transport funding. Most Australians would consider this to be inadequate in a time of rising motoring costs and increasing travel times,” Mr Bradley said.

"Linking the taxes paid by motorists to transport funding has the capacity to deliver better transport systems, reduced congestion, improved road safety, and improved productivity and economic growth.”

“Our current taxation system is widely-viewed as being unfair, inefficient, and no longer sustainable and the type of reforms flagged by Mr Sims need to be considered in the context of the Australian Government’s Tax White Paper,” he said.

The ACCC has added its voice to numerous reviews and inquiries calling for reform of transport funding, including Infrastructure Australia’s 2015 Infrastructure Audit; the Productivity Commission’s Inquiry into Public Infrastructure and; the Harper Review into Australia’s Competition Policy.

 …ends.

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