RAC: Taxpayers are getting shortchanged on road funding

The insurer has released a report that says Western Australia has averaged a return of just a few cents on every dollar of motoring taxation

RAC: Taxpayers are getting shortchanged on road funding

Insurance News

By Mina Martin

An RAC-commissioned report has revealed that Western Australia has averaged a return of just 28c for every dollar of motoring taxation collected by successive federal governments over the past 12 years.

Will Golsby, RAC general manager for corporate affairs, said the upcoming budget provides the current federal government with the opportunity to recognise the continued shortfall and invest more in the transport projects WA urgently needs.

“Billions of dollars have been paid by WA motorists through taxes like fuel excise, yet this report clearly shows that WA has been shortchanged for more than a decade when it comes to federal road funding,” Golsby said.

In 2016-17 alone, only 30c will be returned in funding for WA roads for every dollar collected by the government – that's $806m in total transfers from the $2,699m in total collections.

The auto insurer said increasing the funding to at least half the revenue collected could fully cover the construction of both the Bunbury Outer Ring Road and Albany Ring Road projects within two years, or the Thornlie rail line extension within a single year, and could then fund 12km of new passenger rail every year after.

“Unfortunately, the future also looks bleak, with the federal government currently estimated to return an average of 36c per dollar collected per annum over the next five years, peaking at 62c per dollar in 2017-18 and dropping to only 12c per dollar collected by 2020-21,” Golsby said.

This is despite recent reports by Infrastructure Australia, the independent statutory body established to provide advice to the federal government, identifying the transport challenges facing WA.

In February, Infrastructure Australia reported that Perth experienced the fastest rate of population growth in the country between 2006 and 2016, at 28%. It also highlighted that over the next three decades, Perth would reach a similar population to today's Sydney and Melbourne.

Infrastructure Australia also forecasted in 2015 that seven of the 10 most congested roads nationally will be in Perth, including the top four, with congestion expected to cost WA more than $16bn a year in lost productivity.

RAC identified 10 transport priorities to be funded in the next federal budget:

1. Thornlie to Cockburn rail line
2. Rating and improving the safety of existing roads
3. Automated and connected vehicles
4. Smart transport solutions
5. Perth Light Rail
6. Rail for Perth’s northern corridor
7. Major highway grade separations
8. Bunbury Outer Ring Road
9. Albany Ring Road
10. Cycling infrastructure

 

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