RACV backs global call for fuel tax switch

[vztrt]

http://www.theage.com.au/national/ra...605-1fnhi.html

RACV backs global call for fuel tax switch
Jason Dowling and Tim Colebatch
June 6, 2011

THE RACV has supported an initiative for governments to switch from taxing fuel at the pump to taxing motorists for every kilometre they drive.

Predicting a dramatic fall in fuel tax revenue as more fuel-efficient cars hit the road, the Organisation for Economic Co-operation and Development (OECD) told an International Transport Forum Summit in Germany last week that the change would replace lost revenue for governments and reduce road congestion.

The OECD's modelling on the impact of fuel-efficient vehicles, released at the summit, showed ''in at least some countries fuel consumption is likely to decline, possibly quite strongly, and even more so when stringent carbon abatement policies are introduced''.

Motorists could be charged using GPS satellite tracking, electronic toll-road tags or odometer readings under the proposal.

The RACV's general manager of public policy, Brian Negus, backed the move to kilometre-based charging to replace fuel taxes and fixed motoring costs such as registration.

''There should be as per the Ken Henry tax report, a serious consideration of road pricing. It should be on the basis that fuel excise is removed and a road pricing system comes in,'' he said. ''A move to road pricing in this context is inevitable and certainly is the right the way to go in the point of view of getting the right tax structure for motoring.''

The OECD's proposal comes as the Gillard government faces plummeting fuel tax revenue for a range of reasons. Petrol taxes in Australia have halved as a share of GDP since the Howard government ended indexation of fuel excises 10 years ago - and within four years, are expected to be down to a third of their former level.

The budget papers show that in 2000-01, the petrol excise raised $6.9 billion, or just under 1 per cent of Australia's GDP. But in the decade since, a combination of factors has slashed that take to just $5.9 billion.

By 2014-15, Treasury projects that the tax will raise just $5.3 billion or 0.3 per cent of GDP - leaving an $11 billion hole in the revenue needed to pay for health, education, welfare and other spending.

Despite the switch to diesel vehicles, the government's take from the diesel excise has also fallen as a share of GDP, from 0.7 per cent to 0.5 per cent in a decade.

In 14 years, the combined excise on both fuels is projected to fall from 1.7 per cent of GDP to just 0.8 per cent, leaving the government to find $15 billion of revenue elsewhere.

Two factors have combined to create the revenue hole:

■The Howard government's decision before the 2001 election to end indexation of fuel excises. This has since cut the excise by 25 per cent in real terms, saving motorists $4-$5 billion a year.

■Motorists are driving more fuel-efficient cars, and using public transport more, sending Australia's once-booming fuel consumption into reverse.

The Henry taxation review urged the government to restore indexation of fuel excises - but then prime minister Kevin Rudd and Treasurer Wayne Swan ruled it out immediately. In the longer term, the Henry review saw congestion charges in big cities removing the need for separate taxes on fuel. But it implied that these should be state taxes, not federal ones.

Jason Dowling travelled to the International Transport Forum summit as a guest of the OECD.

[jpd80]

So because vehicles are more efficient and burn less fuel today, the government is losing revenue.
Hmm, looks like the treasury is getting ready to line their pockets with our hard earned cash.

[janddbone]

This actually makes much more sense to me... Canberra won't like State taxes though Lol.

[EDManual]

thats going to hurt country drivers!? i'd have to find a way out of it!

[Franco Cozzo]

Well, I'm going to cop it then, just going to and from work I do 550km a week.

[Jim Goose]

And how would they charge truckies then??????
Wouldnt this mean an increase in freight charges?

[mik]

mmm goody.......... so you are not well off and spend your hard earned $$$ on a fuel efficient car to save a few buks so you can actually afford to drive somewhere only to be kicked in the Goolies for your efforts, i`ll say it...... money sucking parasites they are.

[vztrt]

Originally Posted by Jim Goose

And how would they charge truckies then??????
Wouldn't this mean an increase in freight charges?

They would prob get a subsidy as they do now.

[csv8]

Originally Posted by Road_Warrior

Eat a dick, RACV.

That is all.

I can't believe the blatant, arrogant revenue bias for this statement, yet they throw in an acknowledgment to Australian motorists being more frugal with their fuel usage and henceforth more conscious of the environmental impact of fuel use - isn't that a good thing?? Jesus H. Christ I think I'm living on the wrong planet.

Come to Queensland..our electricity charges are going up 6.6%..Why ?
Because we haven't used enough electricity over summer!!!!!!!!!!!!!!!!!!
Captain Blighs gotta go!!!!

[nstg8a]

its how they tax diesel users in nz, you buy kms, and its a massive fine if your pulled up and you have gone over what youve paid for.

thats why diesel is cheaper than petrol in nz.



i reckon its a good idea, providing the taxes are actually removed from the petrol...

[janddbone]

Country people already pay more in excise, going long distance, as they use more fuel in the first place. So that argument is a mute point. This new arrangement could actually make it fairer much easier...

[Road_Warrior]

Originally Posted by nstg8a

its how they tax diesel users in nz, you buy kms, and its a massive fine if your pulled up and you have gone over what youve paid for.

thats why diesel is cheaper than petrol in nz.



i reckon its a good idea, providing the taxes are actually removed from the petrol...

But but knowing our government they will add this tax ON TOP of what we pay in excise.

[sudszy]

for a change, I think the racv make some sense, their solution to traffic problems(building more roads) has been proven the world over to do exactly the opposite!

At the moment its people that are doing small mileages, people that own several vehicles that are parked in a garage all day that are paying large amounts of rego etc and are subsidising those that are high road users.

user pays, what is fairer than that.

[sudszy]

Originally Posted by csv8

Come to Queensland..our electricity charges are going up 6.6%..Why ?
Because we haven't used enough electricity over summer!!!!!!!!!!!!!!!!!!
Captain Blighs gotta go!!!!

surely the blame lies with whoever privatised elec in queensland?

[2011G6E]

Yep, same thing exactly...we're paying 6.6% this year (more rises to come) for electricity here in Queensland because we listened to everything the grubbiment told us to do and used less power. Nice.

Now the ****** want to find new ways to charge us because our cars are getting better economy...

The black hole that is Canberra never sleeps...

[Gaz]

Good for me, I do bugger all Km's but use lots of petrol. (thank you v8 in short peak hour trips).

[chevypower]

It sounds good in theory, but I don't want the government tracking my car with satellites. Also, I would predict that driving becomes more expensive, even if the fuel component is cheaper. They would probably start privatizing all roads for revenue, and we lose even more control in another area of our lives. Don't do it!

[cheap]

Price of houses within 10km radius of a big city will sky rocket.

[jpd80]

Originally Posted by Gaz

Good for me, I do bugger all Km's but use lots of petrol. (thank you v8 in short peak hour trips).

This,
When you take taxes off fuel / registration and make them distance travelled,
it doesn't matter as much what you drive because the cost of fuel is much lower.

Look at Europe, really high fuel prices did two things:
- Improved fuel economy and reduced emissions
- reduced people's discretionary driving distances.

Unless the government wants to start a variable rate kilometre charging
system or E-Toll every zone in the state, I can't see this working or being fair.

[prydey]

By 2014-15, Treasury projects that the tax will raise just $5.3 billion or 0.3 per cent of GDP - leaving an $11 billion hole in the revenue needed to pay for health, education, welfare and other spending.

i thought the fuel excise was to pay for roads and infrastructure, not just prop up the govt revenue basket.

Originally Posted by sudszy

user pays, what is fairer than that.

i don't see it as fair at all. you might argue that those that do a lot of km should pay more as they are doing more damage to the road, or using the road more. the fact is, most people that do high km, are actually providing some sort of service, whether it be sales, service or whatever. extra costs that they incur will be passed on to the consumer, so nobody wins.

[LTDHO]

As said above, this is how it is done in NZ.
Not sure if going that way will be cheaper for the consumer, although I doubt it.

I like the idea.

Although it wouldn't encourage us to make our vehicles run efficient.

[XWGT]

Originally Posted by Big Damo

Well, I'm going to cop it then, just going to and from work I do 550km a week.

Well I do 800+klm per week to work........will ditch the 8/100klm car and go for a V16 full leather 8 tonne pimp mobile instead............makes sense

[ray38l]

Just goes to show the government don't care about the environment. At the end of the day they just want our money.
If everybody started walking everywhere they would force us to be gps tracked so they could charge us for walking.

[EFFalcon]

the government wants more revenue..

the only way for them to get more, is to charge us more.
theres no way its 'better' for the general population.

those who can, already live close to work, because they can afford it!

[fordman302]

This will just be the start, if they start tracking our movements using gps you know what that means, automatic speeding fines, loss of privacy and not to mention we will all end up paying more regardless.
If the goverment wants some more money maybe they shouldnt be waisting it on this like overly expensive nbn, un used pipelines (vic) and handing out money to the people that live of our taxes to "prop up the economy"

[2011G6E]

Don't worry...the government won't do it unless it can be absolutely assured that it will make more money than the present system...if not immediately then shortly after introduction of it. This goes for literally everything they do, and ever have done.

What, do people honestly think they're going to do something that will "save the public money" and lower thier revenue?

If so, I've got a bridge in Sydney for sale that you might be interested in...

[flappist]

OR

How about moving all the public servants out of the city centres to regional low rise eco friendly natural lighted and cooled enclaves.

Thes could be situated along a rail corridore with regular transport back to the cities and not be accessible to private cars.

Much lower energy use.
Much smaller traffic jams.
Stimulus to building.
Decentralisation.

Of course it would mean government playing their part rather than making everyone else pay for their "luxury lifestyles"........

[Brazen]

Great for wealthy inner-city and inner suburb dwelling commuters.

Bad for the single mums, struggling families who live in the outer suburbs.


They want to introduce a user-pay system? We already do! The more fuel you use, the more tax you pay. You cant get more user-pay than that.

[HULK EF]

Who garaunteed that a tax will be dropped for a different tax?? and not just ADDED ON?

GILLARD" -There will be no carbon tax

[Ben73]

Originally Posted by Brazen

Great for wealthy inner-city and inner suburb dwelling commuters.

Bad for the single mums, struggling families who live in the outer suburbs.


They want to introduce a user-pay system? We already do! The more fuel you use, the more tax you pay. You cant get more user-pay than that.

That's it.



As the article said. Government is losing income because people are driving more fuel efficient cars.
They need to make more money! **** saving fuel, they just want your money!! That is all they care about.