Transport
The issues
The transport sector is currently the third-largest source of greenhouse emissions in Australia and will have the highest percentage share of emissions by 2030. Not enough is being done to achieve the target of net zero by 2050.
Vehicle emissions standards finally came into force on 1 Jan 2025, years after most other countries. The standards should encourage uptake of electric vehicles by forcing manufacturers to lower emissions, but more than half of all new car sales were SUVs and 30% of new cars now run on diesel. A mere 8.4% of new sales were for EVs in 2024 and, to reach net zero by 2050, that must rise to 52%.
The Federal Government subsidised diesel fuel by $10.2 billion in 2024 making fuel taxes now the lowest in the OECD.
More than half of the population living in Australia’s five largest cities do not have access to frequent, all-day public transport, contributing to traffic congestion as people have few options other than driving.
Because Australia’s current transport system is highly dependent on the continued importation of fossil fuels and imported vehicles, any significant disruption to that supply would threaten the production and delivery of all products including essential supplies of food.
Road fatalities remain a leading cause of accidental death with over 1,300 Australians killed in 2024 – a 3.3% increase on 2023.
One hundred and twenty years after federation driver’s license and vehicle registration taxation remain fragmented across Australia. Unifying these systems at the federal level would benefit all Australians. Both of these taxes are flat and should be replaced by taxes on actual vehicle usage.
Our plan
- Rail not road - invest much more in passenger and freight rail systems
- More public transport – Public transit systems, bike paths, dedicated transit lanes, electric buses, elevated trains and trams, ‘shared and active’ transport
- Fast inter-city trains – Short high-volume inter-city fast rail links such as Melbourne-Geelong or Sydney-Newcastle
- Electric vehicles – Align Australia’s vehicle emission standards with Europe, drive the transformation to electric transport and use concessions to to encourage uptake
- Remove the Fuel Tax Credit to mining companies saving $4.8b/year
- Phase out use of diesel for passenger vehicles to cut dangerous particulate pollution
- Support and encourage electric-hybrid aircraft, use sustainable aviation fuel and transition to hydrogen and electric propulsion for aviation by 2040
- Better vehicle safety
- Back the 2-wheel strategy with more off-road bike lanes and shared walkways
- Standardise vehicle registration and driver licenses
The evidence
The advantages of rail. Significant federal funding should go towards rail, making up for decades of neglect of the rail network.
A two-track railway costs around one-third as much as a six-lane freeway, but can carry more than three times as many passengers. Trains cost less, use less space, produce little pollution and less noise. Rail freight generates 16 times less carbon pollution than road freight per tonne kilometre travelled, making it the clear choice to reduce emissions. Road accident costs are 20 times higher than rail for every tonne kilometre moved. Rail projects needed are:
- Standardisation of rail track across Australia, starting with roll-out of gauge-convertible concrete sleepers that allow rapid conversion of the track to Standard Gauge once all the sleepers are in place. Gauge standardisation is critical to allow freight to move across Australia unimpeded by “break of gauge” issues.
- Duplication of single-line tracks where feasible and necessary.
- Upgrading of train control systems.
- Upgrading of inland rail ports to allow rapid movement of freight between trains and trucks.
- More public transit, fewer new motorways
Transport emissions. Light vehicles are responsible for 60% of all transport emissions. The answer to this problem is not more expensive roads and freeways. Governments must drive the changes needed with: tighter vehicle emission standards, disincentives for big emitters like SUVs, incentives for EV chargers, including in apartment buildings, kerbside charging and integration with the power grid using solar and electric vehicle batteries. cheaper, smaller electric vehicles. There should be ongoing FBT concessions for plug-in hybrid vehicles and removal of the five per cent import tariff on light commercial EVs.
Fuel security. Australia imports 90% of liquid fuel and holds just 54 days of fuel supply onshore. To overcome the risk of shortage, biofuel made from feedstock such as non-edible oilseeds should be considered.
References:
https://www.aspistrategist.org.au/australia-should-grow-its-own-fuel/
https://www.fcai.com.au/fcai-acknowledges-government-action-to-support-ev-sales/Aurizon Rail – Rail vs. road freight calculator.
Going off-road: Policy shift needed to get freight on rail Australian Railway Association Consolidated Land and Rail Australia Pty Ltd (CLARA)
Australia’s fuel stockpile is perilously low, and it may be too late for a refill (The Conversation, 2018)
PTUA – Myth: Freeways are cheap, and public transport expensive.
Electric vehicle taxes not needed to offset falling fuel excise revenue (The Age, June 2021)
Federal Chamber of Automotive Industries – Road User Charging (May 2021)
Liquid fuel security: a quick guide–May 2020 update (APH, May 2020)
Bio-aviation Fuel: A Comprehensive Review and Analysis of the Supply Chain Components (Frontiers in energy research, July 2020)
The electric car revolution putting Australia and the rest of the world to shame (The Age, October 2022)
Hydrogen cars won’t overtake electric vehicles because they’re hampered by the laws of science (The Conversation, June 2020)
Hydrogen cars won’t overtake electric vehicles because they’re hampered by the laws of science (The Conversation, June 2020)