What the Budget means for roads

Federal Treasurer Scott Morrison handed down the 2018 budget on Tuesday, May 8 – and promptly copped a swipe from the Australian Automotive Association (AAA).

In a press release titled ‘Federal Budget provides little relief for Australia’s motorists’, the AAA went on the front foot, denouncing the government for allowing road infrastructure investment to decline “by almost $2 billion over the forward estimates”, relative to the forward estimates of the previous budget.

The new investment in Australia’s road network will be “years away” from achieving anything set in concrete, according to the AAA.

“At a time when Australians are paying higher taxes than ever to use the transport network, Australian motorists want to see the Government taking concrete steps to make the transport system safer and more efficient,” said the AAA’s Chief Executive, Michael Bradley.

In explaining the inequity of the budget spend on the road network, the AAA points out that the government will collect $54.4 billion from the fuel excise – $12.6 billion in 2018-19 alone – and a further $5.1 billion from the luxury car tax and import tariff.

Barely a third of that total – $22 billion – is allocated in the budget for road building. That represents 32 per cent of the revenue collected, versus 61 per cent for the previous year’s budget. The AAA insists the government commit to a minimum sum of 50 per cent of fuel excise be reinvested in land transport infrastructure.

“This Budget fails to appropriately reinvest the taxes paid by Australian motorists in the programs so desperately needed to improve safety, affordability, and mobility,” Bradley was also quoted as saying in the press release.

On the plus side, Bradley did welcome the government’s establishment of three funds to address traffic-related infrastructure problems.

“While Australian motorists will this year pay a record level of motoring-related taxes, they will likely still see congestion pressures continue to increase. It is pleasing to see the Government establish the dedicated Urban Congestion Fund, the Roads of Strategic Importance Fund, and the Major Project Business Case Fund,” he observed.

“However, land transport infrastructure commitments over the forward estimates have declined since last year’s budget, at the very time that funding needs to increase if we’re going to relieve the strain on existing transport assets as our population booms.

“Infrastructure is the bedrock upon which future economic growth will be built, it is critical that Australia keeps investing in activities that boost productivity and create jobs.”