Call to replace rego with user-pays fuel levy

Fuel service station helmet user pays fuel levy

A riders group is seeking to scrap vehicle registration in favour of more expensive fuel through an extra state fuel levy, plus a user-pays tracking system for electric vehicles.

The Queensland-based Motorcycle Advocacy Group Facebook group which claims membership of more than 1100 riders, mainly in South-East Queensland, has sent its proposal to the national cabinet.

Unfair rego

Spokesperson David White says the current fixed-cost vehicle registration system is unfair, especially to those with multiple vehicles, while the current federal fuel excise is diminishing as vehicles become more economical.

The group wants rego axed and replaced by a state fuel levy on top of the current federal fuel levy.

“There is a need for a simple, efficient and effective way to improve road funding and a user-pays system for registered road vehicles could achieve this,” the MAG proposal says.

Motorway tolls traffic lane filtering
David White with his 2007 BMW R1200S

“A user-pays fuel levy system for internal-combustion-powered registered road vehicles could be in addition to fuel excise.”

However, they say there would still need to be a nominal annual fee for each vehicle to cover administrative costs.

“Trailers and caravans could have their registration and insurance paid through the extra use of fuel by the towing vehicle,” the proposal suggests.

“The levy could be based on zones, a higher levy in urban zones and lowest in regional and remote zones. This may also lead to a quicker uptake of electric vehicles in cities and urban areas.

A zonal system would be fairer and more equitable as the average fuel consumption for country motorists is usually greater than the average fuel consumption of city motorists. City motorists commonly have a range of essential services close by and also have access to good public transport facilities.”

David says motorists driving and riding electric vehicles should have a user-pays system based on distance travelled via a secure tracking device that protects location privacy.

Levy advantages

David says their proposal would “help meet the current needs of those in financial hardship, boost jobs throughout the economy, lower emissions and traffic congestion, add to the health and wellbeing of the general population and boost productivity quite significantly”.

Owners of multiple vehicles wouldn’t pay onerous rego costs per vehicle under the proposal.

Riders would also be advantaged by the comparatively low fuel consumption of motorcycles and scooters.fuel gauges MBW Motorbike Writer fuel scooter economy

“As motorcyclists, we have noticed repeatedly the omissions of  motorcycles and scooters in most of the inquiries, reviews, reports and plans  that deal with land transport reform and traffic congestion,” David says.

“It is also apparent that these inquiries, reviews, reports and plans do not address some of the basic needs and aspirations of private vehicle owners.  

“Despite overwhelming evidence that reform of land transport is long overdue, these inquiries, reviews, reports and plans haven’t been embraced by the Australian people.”

User pays

There have been several other user-pays proposals over the years including a congestion tax that would be offset by cheaper rego.

In New Zealand, riders get cheaper rego if they complete a rider training course.

  • What do you think of this proposal? Leave your comments in the box below.

8 Comments

  1. Like it – and while you are at it what about Green Slips? I have twelve vehicles (cars and bikes) and therefore pay for 12 green slips each year in NSW – and yet am only ever in a single car or on a single bike at the one time…….. That said I would be prepared to pay redgo on each vehicle as there are arguments bt not for multiple insurance policies for the SAME THING.

  2. Excellent plan I could never understand why I should subsidise those that wear out the roads while I’m parked.Would boost motorcycle sales too. Angus and Ken could buy another bike with the savings.

  3. Hiring a vehicle for a particular job is often the cheaper alternative to buying a vehicle you may rarely need to use. Many who drive large SUVs would be far better off with a scooter and a grocery getter, this proposal would probably force many useless ridiculous vehicles off the road in favour of bikes and micro cars.
    I have often thought that the drivers license should include part of the compulsory insurance as a belt and braces approach. What would you call it if all three were used , belt braces and ?

  4. Strongly opposed to detailed tracking of vehicles, given the Politicians love of overreach (and the Police). But we do need reform that takes into account the issues of petrol/diesel and electric vehicles as well as the hidden costs of multiple vehicle ownership … TAC should be on the license as you only drive/ride one vehicle at a time, with rental cars and overseas drivers without a local license paying a day rate (would help cut down on people driving/riding without correct license)

  5. If you can afford multiple vehicles then you can afford rego.. this would only be a good thing for the show ponies that rarely ride…

    1. I agree, the ones that would loose out here would be the distance traveler for work.
      ”If you can afford multiple vehicles then you can afford rego”

      1. ”If you can afford multiple vehicles then you can afford rego”. That comment comes from someone who doesn’t stop to consider the person with one $90,000 vehicle compared to the enthusiast with two or three $15,000 vehicles. Why do you believe that the person with $45,000 of vehicles can afford to pay more than the person with one $90,000 vehicle??

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