The 2023-24 Federal Budget will cut road safety programs and give motorists a poorer return on the $65.92 billion they will pay in fuel excise over the next four years.
So says the Australian Automobile Association (AAA) in reckoning the budget short-changes Australian motorists.
The budget released on May 9 shows total land transport investment of $55.91 billion over the coming four years will be a $681 million increase from the previous budget’s four-year allocation, says the AAA.
But only 85% of the fuel excise to be collected over the forward estimates will be allocated to land transport investments, whereas the previous budget forecast investing 92% of fuel excise, it adds.
“We’re disappointed that funding from the Road Safety Program – which targets reducing deaths and serious injuries on Australian roads – has been redirected to other areas,” says AAA managing director Michael Bradley.
“Australia’s road toll is rising and motoring affordability is falling – now is not the time to short-change motorists and cut road safety investment.
“Australian motorists will next year bring $15.68 billion in fuel excise to the table. They rightly expect every cent of these tax dollars to be spent on projects and programs that make transport safe, affordable, and free of congestion.”
The AAA welcomes budget announcements which include $43.6 million to establish the National Road Safety Action Grants Program – to support vulnerable road users, community education and awareness, First Nations road safety, and research; and ongoing funding for Black Spot Projects, Roads of Strategic Importance, the Bridges Renewal Program, Roads to Recovery, and the Heavy Vehicle Safety and Productivity program.
It is also pleased to see $14 million for a Real-World Testing Program to test and report selected new vehicles’ real-world emissions and fuel consumption, $5.2 million to support measures to increase electric vehicle uptake; and $16.5 million for car safety ratings programs.
However, the budget does not address the structural reforms needed to make Australia’s motoring taxation and infrastructure spending more equitable, transparent, and sustainable, the AAA explains.
Multiple government reviews and independent analyses have found that fuel excise is neither fair nor sustainable for long-term road funding, it says.
“As use of electric and low-emission vehicles grows, the Government must modernise transport taxation to ensure all motorists pay their share for road construction and maintenance,” says Bradley.
The AAA also supports medical and transport groups in calling for the Commonwealth to hold state and territory governments accountable for the steps needed to achieve agreed road safety targets through publication of road safety data.
“Money is scarce, and motorists expect evidence-based decisions and data that show investments are designed to save lives, not shore-up seats,” Bradley explains.
Motor Traders’ Association (MTA) NSW chief executive Stavros Yallouridis says the automotive sector is a crucial driver of the economy, “and as our industry undergoes a once-in-a-century transformation towards electric vehicles, we are urging the Federal Government to acknowledge the critical role our industry will play in this transition”.
The MTA is encouraged by the budget commitment toward EVs and investment in a national charging infrastructure along with the training of emergency service workers.
But the MTA says it’s “disappointed that the workforce has not been identified for any funding to put towards training the thousands of auto workers who will need to be upskilled to safely and effectively handle and repair EVs”.
“The transition to electric vehicles will be challenging for the small businesses that make up our auto industry as they are already operating on very thin margins and there is a significant amount of capital investment required in retooling, purchasing charging infrastructure and the upskilling of their employees,” says Yallouridis.
“Our industry is currently facing a shortfall of approximately 38,000 skilled professionals, and this shortage is only going to be exacerbated with the rollout of EVs and without the government putting their hand in their pocket, our industry is going to be left severely underprepared to meet 2030 targets.”
Yallouridis says current electric vehicle targets are missing key steps and could see Australia go backwards.
“To increase EV adoption without accelerating the training required to safely service these vehicles, our transition will simply not work.
“While we are supportive of the funding allocated to improve completion rates in the automotive sector, our model is already aligned with this objective and we are working closely with the Australian Apprenticeship Support Networks to deliver better outcomes across our training but there is a fundamental flaw in the reliance on TAFE, where some apprentices are waiting six to 12 months to be signed up.
“Private RTOs and GTOs need additional funding to be able to better complement TAFE to ensure improved outcomes across the board.”
The Climate Council says budget climate funding is “a warm-up lap in history’s most important race” and that it doesn’t meet the scale of climate emergency Australia faces.
Engineers Australia chief executive Romilly Madew says Australia faces a tricky geopolitical backdrop, tough economic conditions, a skills deficit and pressing climate change challenges- which all intersect with the engineering profession.
“This budget will help take our tech smarts and turn them into high-paid jobs and globally successful businesses,” says Tech Council of Australia chief executive Kate Pounder.
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