Moving Australia



 

BIC Policy Statements

Taxes, Charges and Infrastructure 

Public Transport and Productivity

Road Pricing

Heavy Vehicle Charges

Tax and Public Transport

The Effective Life of Vehicles

 

 

Public Transport and Productivity

Public transport, in addition to providing significant social and environmental benefits, has a key role to play in unlocking our cities by easing congestion. The congestion relief that world class public transport systems provide can boost the productivity of individuals and the economy as a whole.The BIC continues to advocate for recognition of the economic benefits of public transport and inclusion of these benefits in future assessment of how infrastructure funding dollars are spent.

The establishment of Infrastructure Australia and investment in large scale rail projects by the previous Commonwealth Government was the right step in defining a set of institutional frameworks for infrastructure development that will address the challenges of land transport and producticity in the future.

There is a potential through the reform agenda being undertaken by Infrastructure Australia and Council of Australian Governments Reform Council for investment in smaller projects which incorporate considerations of land use and transport within urban renewal in our major cities and regions.

Read the BIC response to the Standing Committee of Infrastructure, Transport and Cities inquiry into capturing the value of transport infrastructure. In this submission the BIC explores suitable funding mechanisms that may assist in supporting increased spending on public transport, as well as a proposed a set of principles which are relevant in choosing the merits of each funding mechanism.

BIC Submission Capturing Value of Transport Infrastructure BIC Submission Capturing Value of Transport Infrastructure (549 KB)


Read the BIC feedback on the draft National Remote and Regional Transport Strategy. In which the Industry expresses its concerns over the quite light on action items, particularly in relation to public transport.

BIC Submission National Remote and Regional Transport Strategy BIC Submission National Remote and Regional Transport Strategy (536 KB)


Read the BIC response to the Senate Inquiry into the Role of Public Transport in Productivity Outcomes. In this submission the BIC emphasised the importance of an integrated approach to addressing congestion and improving the productivity of our cities.

BIC Submission Public Transport Productivity Outcomes BIC Submission Public Transport Productivity Outcomes (430 KB)

 
Read the BIC response to the Productivity Commission's Inquiry into Public Infrastructure. In this submission the BIC addressed the Productivity Commissions questions on the infrastructure development process in Australia and presented our case for a comprehensive pricing system to help fund Australia's future infrastructure needs.  

BIC Submission Public Infrastructure BIC Submission Public Infrastructure (663 KB)

Read the BIC submission to the Infrastructure Australia Amendment Bill. The BIC took the lead in developing a response from the members of the Moving People 2030 Taskforce to the proposed amendments to the legislation which Infrastructure Australia operates under. We sought clarification on a few key points in the proposed new legislation. 
 

Moving People Taskforce Submission IA Amendment Bill Moving People Taskforce Submission IA Amendment Bill (164 KB)

 

Road Pricing

There are a wide range of external costs of transport, particularly road transport, which are not met by road users, resulting in excessive levels of traffic.  Congestion pricing, in particular, is important since it is of a similar order of magnitude to annual road construction and maintenance costs (about $12 billion).

The BIC proposes a comprehensive externality based road pricing regime is implemented to replace the current fuel excise charges and associated heavy vehicle charging systems. 

A comprehensive road pricing system will result in a more rational set of travel choices, reduced demand for new infrastructure, and achievement of significant economic benefits through lower congestion costs, as well as cutting other external costs of road use.

We propose the new road pricing system should include:

Read the BIC response to the COAG Road Reform Plan where we outline a solution for the road pricing system in Australia including heavy vehicles and cars.

BIC Response to Coag Road Reform Plan BIC Response to Coag Road Reform Plan (191 KB)

 
Environmental and Social Taxes, Road Pricing Reform in Australia - A working paper regarding road pricing from Professors Stanley and Hensher at the University of Sydney. This paper was presented as the BIC submission to the Commonwealth Government's Tax Reform Forum in 2011.
 

Stanley and Hensher Road Pricing Stanley and Hensher Road Pricing (311 KB)


Heavy Vehicle Charges

The bus industry often suffers from the “one size fits all” approach taken to the regulation and pricing of heavy vehicles.

The BIC advocates for a heavy vehicle pricing regime that recognises the vital difference in task of trucks and buses and charges accordingly.

The BIC believes major issues that need to be addressed by heavy vehicle road pricing reform are:

 

 


Tax and Public Transport

 

Due to the structural arrangements underlying the Fuel Tax Credits (Diesel Fuel Rebate) Scheme, the indexation of fuel excise is revenue neutral for bus and coach operators throughout Australia.

The BIC sees opportunities for changes to the way fuel excise is structured to promote an admixture of investment in road and rail public transport infrastructure and travel behaviour change projects in addition to the intended purpose of returning revenue collected from fuel excise indexation to road expenditure.

The BIC's Submission to the Inquiry into the Fuel Excise Amendment Bill in 2014 outlines our position. 

 

 Read the BIC's Submission to the Fuel Excise Amendment Bill

BIC Submission to Excise Indexation Bill BIC Submission to Excise Indexation Bill (243 KB)

 

The provision of Fringe Benefits Tax (FBT) benefits for public transport travel by employees will encourage public transport use for work trips.

With almost 85 per cent of total trips in Australia taking place within 100kms of the commuter’s home, and a significant portion of these trips being work related, the use of public transport for work related travel can play a significant part in the reduction of congestion and transport related emissions and the achievement of targets.

Making the cost of periodic public transport tickets, for the purpose of travel to and from work, tax deductible will further incentivise public transport use.

Read the BIC Submission to Re:think Tax Discussion Paper

BIC Submission Taxation Review 2015 BIC Submission Taxation Review 2015 (890 KB)

 
Read the BIC Submission to the Review of Australia's Future Tax System
 

BIC Submission to Henry Review BIC Submission to Henry Review (116 KB)

 

The Effective Life of Vehicles

The economic life of a bus is influenced by a variety of factors including its daily workload, the work conditions it faces, the regulatory environment it operates in, the quality of the bus itself and changing technology.

About 80 per cent of the lifetime work of a bus is undertaken in the first seven years of its life.

The current capped effective life of vehicles is 7.5 years.

The BIC seeks the consideration of a capped 5 year Effective Life Depreciation rate to assist Industry meet the requirements of the Accessible Transport Standards under the Federal Government’s Disability Discrimination Act and encourage the uptake of new fuel efficiency and emissions technology within the Australian bus fleet.

Read BIC's research into the economic impacts of altering the effective life of buses for tax purposes. 

Effective Life Effective Life (459 KB)

 

 


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