News

NZ Fuel Taxes to go to Roads

26.7.2007

The Australian Automobile Association today noted the decision of the New Zealand Government to allocate all fuel tax revenue to be spent on transport and roads.

The NZ Cabinet decision this week will see full “hypothecation” of petrol and other fuel taxes to transport and road infrastructure from July 2008.

AAA Executive Director Mike Harris said the NZ decision was a boon for road users and in line with the views of Australian motorists.

Mr Harris said AAA research conducted this year showed 93% of Australian motorists believe that more of the Australian fuel excise of 38c per litre should be spent on roads.

“AAA has long argued for an increasing slice of fuel tax revenue to go towards designing, building and maintaining better Australian roads – in a country the size of Australia this is vital,” he said.

“That is why we are calling on the Federal Government to increase its share of fuel tax revenue allocated to roads to 12cpl, or $25 billion a year and for increased funding to $100 million a year for the Commonwealth’s Black Spots program.

“Ideally, AAA would like to see the Government replacing fuel excise with a road user charge - with all revenue going to roads to cover the costs of road wear and external costs of crashes and air and noise pollution.”

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