This report examines how transport services in Australia should be charged for, how such charges can contribute to economic efficiency and how capital works in the transport sector should be funded.
The transport sector is a significant component of the Australian economy with transport specific industries comprising 4.6 per cent of GDP in 2006‐07 and providing 4.7 per cent of total employment (BITRE, 2008). The significant role of transport industries is unsurprising given the substantial distances between Australia and the rest‐of‐the‐world and between Australia’s major cities. Efficient movements of people and goods affect efficiencies throughout the economy both directly and through transport’s role as an intermediate input. Transport services therefore provide a key influence on national productivity and well‐being.
This report was prepared by Harry Clarke and David Prentice, School of Economics and Finance, La Trobe University for the 'Australia's Future Tax System' review by Treasury, Canberra, June 2009.