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New proposed tax changes for motorists : Car Advice | News Blog

New proposed tax changes for motorists

March 10, 2008 by Alborz Fallah  




A new proposal put before the Federal government recommends that motorists should pay based on usage and not the one-rate-for-all system currently in place. Essentially the new system will work similarly to mobile phone plans, you pay a setup fee and then pay as you go.

Sydney Traffic

Using automatic vehicle identification systems (able to read number plates) drivers will be automatically charged a special levy when they drive on congested roads, they will be charged less in non-peak periods and Toyota Prius owners and owners of other ‘environmentally friendly cars‘ would receive discounts for their ‘limited‘ impact on the environment.

The proposal has been put forward by the Australian Automobile Association, which includes Australia’s eight driver service organisations, (NRMA, RACV, RACQ…) and has already gained the endorsement of the government advisory group, the National Transport Commission.

Payments will include an “access charge” for driving via certain roads as well as a “user charge” which will act like a setup fee. The new system, if given the green light, will replace the current charges drivers pay:

  • federal fuel excise,
  • GST on petrol,
  • state registration charges,
  • stamp duty on registration and road tolls.

The exact amount motorists will be charged is yet to be determined, but given there will be no federal fuel excise, registration fee and GST on petrol, expect to pay up to a few dollars for travelling on your normal stretch of road – each day.

Pay as you go

Factors that determine your charge include the size of the vehicle and the wear it causes roads, an environmental charge related to the size of your engine, a levy to cover the costs of crashes and congestion charges.

Sounds like in ingenious idea doesn’t it? Well it all depends on what you drive and how much you drive. The current system will charge an 80 year old grandmother who puts 5,000km/year on the odometer the same registration fee as an above-average motorists who travels over 50,000km/year.

The proposal sounds too good to be true, mainly because the money the government makes from excise on petrol is enormous. This year it is expected to raise $14.42 billion, out of which only an estimated $3.41 billion will be spent on roads.

Furthermore Australian manufacturers are sure to rally against the plan as it will put yet another strain on locally made 6/8-cylinder vehicles.

Would you agree to a pay-as-you-go system if it meant not having to pay the fuel excise and registration fee?

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Comments

110 Responses to “New proposed tax changes for motorists”
  1. jbot says:

    I might add 14.2L/km is still good considering the driving conditions, but nothing like what WILDB gets in his imaginary world.

  2. WILDB says:

    Imaginary hey. Sure, you can think what you want and by the way I would call Brisbane a real city.

  3. WILDB says:

    It comes down to how you drive, if you drive like a dick then you get bad economy. Car is a manual not an auto and of all of the auto’s I have owned and in particular Falcon’s the autos chew the juice.

  4. treno_186 says:

    I would say that WILDB is not living in an imaginary world as I own an 03 BA XR6 with the T5 manual with a K&N Filter and I can easily get under 11L/100 in suburban driving although admittedly I dont live in the city I live in outer suburbs. In saying this however I do plenty of stopping and starting in my driving due to traffic.

  5. jbot says:

    Drive in rush hour for a bit then tell me you can get 11.4 WILDB. I can get under in mine, but 14.2 is the overall average for the BFII. Highway runs are great, but no car that size can do well in rush hour.

  6. treno_186 says:

    JBot is your falcon the old BTR 4sp Auto or the ZF 6 speeder becuase that is terrible economy. Before the XR I had a BAII Ghia with the BTR when I travelled into central Sydney everyday and I got about 12.5L/100 avg and that is not according to the gauge because they are always inaccurate. Perhaps your right boot gets plenty of work?

    Work out the ACTUAL economy by dividing number of L by the number of KM so for 450k from 50L you go 50/4.5 = 11.1

    Have a go and see what you come up with.

  7. treno_186 says:

    My BA XR is actually worse on the HWY because of the short 5th in these T5 boxes. My Ghia used more city but less HWY than my XR.

  8. WILDB says:

    I am not going to have an argument over what fuel economy is achievable in my car because it is obvious you don’t believe it. I was stating that MY FALCON and other ones at work (all manual as well) use LESS fuel than all bar one of the company Aurions (4 base and 1 sportivo use more fuel) over the SAME ROADS. The only one which uses less is the boses (sorry, didn’t take notice of the model, top of the range I think)

  9. jbot says:

    That average is going off the trip computer. And unfortunately its the 4-speed. Its not my car, but I use it occasionally. It would proably do 60% of its driving in the rush hours, so 14.2 not that bad really.

  10. treno_186 says:

    Jbot, I figured that would be a trip computer reading. My trip computer is showing 13.2L/100km but by calculating the L divide distance it shows my TRUE avg for this week anyway is 11.21L/100km. Work it out and I think you will be supprised.

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