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Heavy Vehicle Road Reform

The ultimate goal of heavy vehicle road reform is to turn the provision of heavy vehicle road infrastructure into an economic service where feasible. This would see a market established that links heavy vehicle user needs with the level of service they receive, the charges they pay and the investment of those charges back into heavy vehicle road services.

While more direct user charging is needed to fully close the link between the needs of users and the charges they pay, there is much that can be done to improve these linkages within the current heavy vehicle charging framework (PAYGO). These ‘supply side’ reforms to the way governments plan, govern and invest in roads are the focus of the first three phases of the reform road map agreed by the Transport and Infrastructure Council in May 2015.

Economic analysis indicates that supply side improvements provide the majority of the benefits of implementing more direct heavy vehicle user charges (estimated to be between $6.5bn and $13.3 billion in net present value over 20 years (7% discount rate), depending on the system). More details about the reform are outlined in the brochure below.

Independent price regulation of heavy vehicle charges

The current phase of heavy vehicle road reform is looking at the implementation of independent price regulation of heavy vehicle charges.

In November 2017, the Council asked for a COAG Regulation Impact Statement (RIS) to be developed to inform a decision on whether to implement independent price regulation.

Marsden Jacob and Associates has released a Consultation RIS on Heavy Vehicle Road Reform. As part of the RIS process, Marsden Jacob and Associates are seeking the views of industry and the general public on the costs and benefits of implementing independent price regulation of heavy vehicle charges.

A copy of the Consultation RIS can be found at the Marsden Jacob and Associate website.

Once consultation has closed and submission have been considered, a Decision RIS will be prepared for the consideration of the Office of Best Practice Regulation, and then Council. Council is expected to consider the RIS in 2018-19.

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Last Updated: 2 August, 2018