An evaluation of the case for a congestion tax in Australia

Prafula Pearce, Dale Pinto

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Abstract

Traffic congestion has become a growing concern in most cities in Australia. A 2014 report by the Economic Regulation Authority (ERA) highlighted the need to implement a congestion charge in Perth. This article examines factors that cause congestion and alternative ways of dealing with congestion in Australia. Specifically, the article examines whether introducing a congestion tax could provide an effective means of resolving traffic congestion in Australian cities. Studies and results from other jurisdictions are examined in order to help inform the policies that Australia should adopt. It is submitted that an inquiry into congestion charges should include a wider investigation, including motor vehicle tax reform, city planning, redirection of revenues and a longer strategic plan. The article also recognises that congestion charging, if implemented, may have other implications for which Australian cities may not be ready.
Original languageEnglish
Pages (from-to)146 - 153
Number of pages8
JournalTax Specialist
Volume18
Issue number4
Publication statusPublished - 2015

Cite this

Pearce, P., & Pinto, D. (2015). An evaluation of the case for a congestion tax in Australia. Tax Specialist, 18(4), 146 - 153.