ROADS are the single largest infrastructure spending item for governments in Australia and fuel excise is the largest source of road-related revenue.

However, this source of revenue has been falling for some time, attributed to improvements in fuel efficiency of conventional gas- and diesel-powered vehicles, and the increase in alternatively powered vehicles like electric and hybrid vehicles.

A decline can be expected to continue and will add pressure for both State and Federal Governments to find alternative sources of revenue, especially to maintain roads.

This is cold comfort to the road users in western Victoria, especially considering the district’s contribution to the economy through multiple streams of agricultural productivity, manufacturing and tourism, all heavily reliant on road transportation.

Major improvements to local and regional roads are long overdue, with some sections remaining notoriously dangerous for years, while metropolitan expenditure never seems to wane.

Country road users are too used to rough surfaces, narrow and single carriage ways, with some sections permanently sign posted at 60 kilometres, broken edges and dangerous cambers riddled with potholes while drivers negotiate poor visibility from dust; just some of the issues that the large volume of road users must contend with.

Widely speculated is whether the Federal Government will announce a cut to the fuel excise in the Budget today, likewise, the opposition’s Budget Reply.

However, the Federal opposition has vowed to exempt electric cars from import and fringe benefit taxes, if it forms government following the next Federal Election.

Paying fuel excise is not an entirely fair tax system anyway. 

The inequity of the system effects those on lower incomes more.

As with other non-discretionary expenses that are considered mandatory; housing, taxes, debt and groceries take up a larger portion of their income.

Fuel excise, for instance, falls more heavily on those who drive less efficient vehicles, commute further and have fewer alternative commuting options.

The State Government’s Zero Emissions Vehicle program, valued at $3000 for eligible vehicles purchased on or after May 2, 2021, doesn’t work in the interests of those on lower incomes.

Fuel efficient or alternatively powered vehicles, like electric and hybrid vehicles, have higher outlay costs which discourages lower income buyers.

Opposition leader Anthony Albanese has committed to delivering an Electric Car Discount to make electric vehicles cheaper, should his party form government at the Federal Election this year.

Mr Albanese aspires to see electric vehicle use on par with other countries, as presently, only 0.7 per cent of cars sold in Australia are electric, compared to a global average of 4.2 per cent, and 75 per cent in Norway.

The case for reform of road user revenue and investment was the first recommendation in a 2020-2021 Federal budget submission by Roads Australia’s (RA), the peak representational body for roads and related industries that creates billions in revenue and employs over a million people.

It said that it was essential that Australian Governments move to more equitable and efficient road pricing and investment models, recommending that “all road users contribute according to how, where and when they travel and the impact they have on the road network”.

Disgruntled truck drivers reportedly stopped work last week on infrastructure projects including the West Gate Tunnel and level-crossing removals because of crippling diesel fuel prices.

Hundreds of tip-truck drivers are paid $1.40 a litre under the State Government cost model, but the cost of diesel has soared to more than $2 in the past week.

Their stop work action meant dirt, rock and contaminated soil would not be transported from construction sites.

Victorian Tippers United secretary, Luke McCrone said the current model was costing drivers to go to work, and “once fuel, maintenance and repayments are factored in, owner-drivers are left with as little as $100 per day”.

Australia’s motoring body the Australia Automobile Association (AAA) has launched a campaign to encourage voters to tell politicians they want transport spending at the centre of Australia’s COVID-19 recovery and the 2022 Federal Election.

The Global Economy that ranks business and economic data across 200 countries ranks Australia 33rd out of 137 countries for quality of roads.

Higher petrol prices are becoming an additional burden for already financial stretched young people and families, particularly with housing and groceries.

La Trobe Uni student, Blair Burns, 20, said due to higher petrol prices he wouldn’t be returning home to Hamilton to see his family as much as he’d like.

“It is very expensive driving back and forth at the moment with high petrol prices,” Mr Burns said.

“Especially as my cricket club St Andrews has made the finals, I’ve been driving up and down to Melbourne from Hamilton and now we have the grand final on the weekend,” he said.

“I have brought mates back where possible, some of my mates don’t have their car down there due to the high cost of fuel so we have been carpooling in mine as much as we can.

“Public transport is much cheaper but having to take cricket gear and other stuff back makes that too hard and not a realistic option.”

With petrol prices soaring over $2 a litre, speculation is growing that the government is finalising cost of living relief to be unveiled in the budget, possibly in the form of one-off payments.