The Australian Automobile Association welcomes the Federal Budget road investment of more than $10 billion per annum over the next four years.
However, the AAA is calling for greater transparency over road spending decision-making and the abolition of redundant taxes that are adding to transport costs.
The 2025-26 Budget increased road investment by 2.5% over the next three years, despite a forecast 2.5% decrease in net fuel excise revenue to $50.6 billion over the same period.
Key announcements included confirmation of $7.2 billion for Queensland’s Bruce Highway as well as $2.1 billion for the Road Blitz and Western Highway in Victoria and $700 million to upgrade Terrigal Drive and deliver a range of projects in Western Sydney.
However, the AAA questions the Government’s failure to address escalating transport costs and the growing inequity of Australia’s transport taxation system.
AAA managing director Michael Bradley noted import tariffs introduced to protect the now-closed Australian car manufacturing industry would raise $380 million in both 2024-25 and 2025-26, while luxury car tax was forecast to raise $1.17 billion in 2024-25, rising to $1.2 billion in 2025-26 and $1.4 billion in 2028-29.
“These legacy taxes have outlived their original purpose and today are adding to the cost of cars being bought by Australian families and fleets,’’ Bradley says.
“Abolishing these protectionist measures must form part of a broader reform of tax arrangements, which should seek to ensure all Australians pay their fair share toward the upkeep of the road system and spread the cost burden more evenly across the community,” he says
The Budget forecasts that fuel excise receipts will fall over the next four years as more Australians shift to electric vehicles, leaving a declining proportion of Australians to shoulder the burden of funding the construction and maintenance of Australia’s transport network.
“It is disappointing that Australians heard nothing about the Government’s plan for a more affordable, sustainable, and equitable system for paying for our roads,’’ Bradley says.
“The AAA is pleased to see a 10% increase in the Roads to Recovery Program to $3.7 billion over the forward estimates, as well as a $40 million increase in the Black Spot Program to $600 million.
“But without any evidence about the road safety implications of the major projects being announced, Australians can’t judge whether politicians are funding roads to save lives or simply win votes in marginal electorates.
“With road deaths rising in each of the past four years, the AAA calls on politicians to explain the context of their road proposals by producing relevant safety ratings so Australians can judge funding motives,’’ he says.
Bradley said around 500,000km of Australian roads have been rated on a five-star safety scale using protocols of the Australian Road Safety Assessment Program (AusRAP).
But, he says the data is not made public.
“Our polling shows about a third of Australians believe politicians choose which roads to fund based on their political imperatives, not public safety,’’ Bradley says.
“Publishing relevant AusRAP ratings at the time road projects are announced will save lives, increase transparency, and lift public confidence in decision-making,’’ he says.
The Budget shows 79% of the excise to be collected over the next four years will be invested in Australia’s land transport network. Last year’s Budget forecast investing 77% of fuel excise in land transport.
During the 2025 federal election the AAA and state motoring clubs, representing 9.5 million Australians, will campaign for transparent use of AusRAP road ratings to justify road safety promises. For details: mysafetycounts.org.au
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