Pay-as-you-go rego back on the table

August 31st, 2021

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The controversial topic of car registration is back on the table again, and the notion of a pay-as-you-go system is back in the spotlight as the Victorian Government reportedly leads the assessment of the proposal. Amid the impact of COVID, which has seen many of us not use our cars at all, the issue has gathered extra attention, and it could even bring the topic to a head sooner than otherwise might have been the case.

Central to the discussion has been a recommendation from Infrastructure Victoria, which has proposed car rego fees be abolished in favour of a ‘user pays’ system. Although they have set an extended timeline for this, advising it happen within the next 10 years, that may actually be earlier than other bodies have advocated.

In voicing its support for the proposal, Infrastructure Victoria, which is an independent state government advisory body, argues that the transition to a pay-per-use system would discourage unnecessary driving and promote the uptake of public transport and the like. It believes the current car registration system effectively gives motorists a reason to use their vehicles frequently. Furthermore, the authoritative body suggests that a fixed-price rego does “not reflect the relative costs of providing road infrastructure, the costs of congestion, air and noise pollution, carbon emissions, and road trauma”.

Changes could be much broader

However, it isn’t just a pay-per-kilometre system that is under review. Infrastructure Victoria is also suggesting that drivers entering the inner city be slugged with a congestion charge. The target here is quote clear, insofar as trying to decrease vehicle use. In turn, that would alleviate traffic on our roads, while also doing more for the environment, residents, as well as ensuring a more ‘efficient’ commute.

Motorists could also be faced with the prospect of paying fees depending on the type of vehicle they drive. That is, cars with a greater impact on our roads and the environment could pay more than those with a more modest impact when it comes to noise and air pollution. Electric vehicles would be one of the beneficiaries under such a proposal, while large trucks would obviously carry the burden. In some weighs, our current system already seeks to address this point, albeit the independent state government advisory body believes there may be more room to fine-tune this.

It may even seem all well and good as far as intentions go, but then again, electric vehicle owners have recently been stung with their own separate pay-per-kilometre levy as of the start of July, in addition to their registration fees, which is sure to raise eyebrows given Infrastructure Victoria is pushing for the sale of new petrol and diesel cars to be banned by 2030.