Productivity Commission doubles down on road user charging reform
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The news: The Productivity Commission has doubled down in its push for road user charging reform, adding the recommendation into a new competition analysis interim report that largely focuses on skills.
In a National Competition Policy analysis 2025 interim report, it says there has been added impetus for a shift in the way drivers are charged for road maintenance and infrastructure due to the growth in electric vehicles that are able to avoid the fuel excise.
The context: The PC was asked to analyse an occupational licensing scheme allowing workers to use their skills across Australia, adopting offshore standards and aligning regulated standards nationally, and any other priority reform options identified while undertaking the study.
The PC found the reforms it was asked to model collectively have the potential to raise GDP by up to 0.24%.
One of the additional reform options, which the PC itself noted it has recommended “many times in the past”, is road user charging.
A final report is due to be delivered in October 2025.
The numbers: The PC found that aligning Australia’s various standards with those from overseas could be worth between $1.9 billion and $3.8 billion a year.
There are 7,519 Australian standards, of which 893 are referenced in legislation and 21 are not aligned with international standards. However, a large proportion of Australian standards were found to be "bespoke" and have no international equivalent.
Providing labour mobility across the country for high-risk licensed occupations was found to be worth up to $846 million a year. This benefit was found to partly be focused on electrical trades, at around $51 million to $62 million a year.
The PC is also eager to see public procurement reform, where it estimates savings could be worth up to $4.7 billion, and data sharing reforms across jurisdictions, potentially worth up to $1.6 billion.
Modelling for road user charging will be undertaken by the PC before the final report is published.
What they said: Treasurer Jim Chalmers said regulatory reform is "high" on the government's agenda and the report would help identify opportunities, particularly for the upcoming Economic Reform Roundtable.
"Standards reform could save Australians billions of dollars every year and ease the burden on businesses," Chalmers said.
"We’re already cutting red tape to save tradies’ time and money by designing a national licensing scheme for electrical trades people.
"The Productivity Commission’s report shows that not only is this reform good for workers and good for businesses, it will also make our economy more productive and competitive."
The sources: Productivity Commission National Competition Policy analysis 2025 interim report, Treasurer media statement
