Treasurer Jim Chalmers has quietly stripped $3.8 billion from Australia’s roads and transport spending in the coming years – even as Treasury prepares to collect billions more from motorists through fuel excise and luxury car taxes.
While last year’s federal budget allocated $53.59 billion for land transport infrastructure, that figure has now been reduced to $49.798 billion, according to NRMA analysis.
At the same time, fuel excise revenue, paid in every litre of petrol and diesel, is forecast to surge by almost $5 billion, climbing from $26.2 billion in 2026-27 to $29.4 billion by 2029-30.
For motorists already paying more at the bowser, the contrast is stark: Australians are being taxed more heavily to use the roads, while less money is being directed back into maintaining and upgrading them.
NRMA spokesman Peter Khoury said the cut came amid worsening road safety and a growing maintenance crisis, particularly in regional Australia.
“This year’s budget has $3.8 billion less allocated to land transport over the coming four years,” Mr Khoury said.
“But the most alarming statistic isn’t even in the budget – it’s that the national road toll is up 3.5 per cent, with 1333 deaths across Australia.”
The NRMA argues the federal government is effectively pulling money out of road funding while motorists continue footing a larger tax bill through fuel excise.
Local councils, which maintain roughly 85 per cent of the nation’s road network, are increasingly unable to keep up with deteriorating conditions.
“Councils, particularly in regional and outer suburban areas, don’t have the revenue streams to maintain roads to a safe standard,” Mr Khoury said.
“They rely on federal and state governments to provide enough funding just to repair potholes and keep roads safe. We’re not even talking about major upgrades.”
He warned critical programs such as Black Spot funding and Roads to Recovery needed significantly more investment as road conditions continue to deteriorate.
“Motorists are paying more than their fair share in taxes,” he said.
The funding squeeze comes as NSW grapples with mounting infrastructure problems, including major cracking along the Great Western Highway at Victoria Pass, forcing authorities to fast-track emergency engineering works while closures are expected to continue beyond June.
The NRMA’s latest transport survey identified some of the state’s worst roads as including Parramatta Road at Auburn, The Lakes Way in Forster, Kings Highway at Bungendore, Wakehurst Parkway in Elanora Heights, and The Bucketts Way at Booral.
For many drivers, the consequences are already being felt.
Auburn resident Amirthalingam Logathassan, 70, said crashes occurred “every week” at the intersection of Parramatta and Station roads.
“It’s not up to standard,” he said. “It’s a main road and people are using it to get to the city.”
“There’s no excuse. Australia is a rich country.”
Driver Mohammed Zod, 23, said pothole damage had pushed up his insurance costs.
“It’s a headache. Cars get destroyed,” he said. “It’s been the same for the past 20 years or longer.”
Welder Pat Sheehan, 27 said “Parramatta Road is a shocker. The whole Great Western Highway is pretty bad” he said.“The amount of damage it does is terrible and nothing changes”.
Committee for Sydney chief executive Eamon Waterford warned the funding retreat also threatened the next generation of major infrastructure projects.
“If we want to build big infrastructure projects in the next 10 years, the planning needs to start today,” he said.
“Whether it’s roads, Metro or light rail, that requires funding now.”
The federal government rejected claims it had cut infrastructure spending, insisting it remained committed to a rolling $120 billion pipeline.
A spokesman for Infrastructure Minister Catherine King said the Albanese government had announced $12.1 billion in new infrastructure investment, including $10.3 billion for transport projects.
But critics argue the broader numbers tell a different story: as fuel excise collections climb sharply, less of that money is flowing back into the roads motorists rely on every day.
Extracted in full from: https://www.dailytelegraph.com.au/news/nsw/nrma-blasts-38bn-road-funding-cut-as-government-reaps-record-fuel-tax/news-story/38e22418d6cdd7cc2262a1f3cc06eb38
