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From Geelong accountants to Tasmanian apiarists, nearly everyone in Australia benefits from solid infrastructure. However, in the face of a growing population and an ever-increasingg burden on our public roads, gas and water lines, many Australians are beginning to wonder just how we might maintain these integral parts of our country, our development and our economy.
Could a pay-as-you-go road tax be the answer?
This new suggestion comes as part of a report composed by Infrastructure Australia (IA) on possible hurdles and ensuing solutions that will face Australia in the near future. Among these recommendations was a fundamental change to the way that the government gathers capital to build and maintain its roads.
The current system makes no difference between tax money gathered from road users or from payroll deductions. Location is not accounted for either, so a Canberran could be paying for Sydney road maintenance. Infrastructure Australia considers this unfair, as the people who are paying for these constructions may never directly benefit from them.
Pay-as-you-go road tolls and your business
Instead, IA recommends a new user-pays system. The more you use a road, the more you pay in tax towards its maintenance and further construction.
So, how might this affect your business development?
If you're a Geelong business and operate exclusively within Geelong, you could see yourself paying far less road tax, enabling you to place more funds into your business development.
However, it's quite a different story if you use a fleet of vehicles or even simply travel a lot for your work – you could end up paying more than you already do, but at least you know it would be going towards maintaining your nearby public roads rather than fixing potholes in a completely different state.
Time will tell if the government decides to take up IA on these recommendations.
Until then, keep a handle on your business tax and enterprise accounting with the experts at WMC Accounting.
