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Road User Charging: An Old Cost Made More Fair and Visible

Paul Fletcher is the principal of advisory firm Paul Fletcher & Associates. Paul is a director of the Tech Council of Australia, a director of Amalgamated Telecom Holdings Limited, and an adviser to transport technology business Compass IoT.

Paul was elected to the Australian Parliament as the Member for Bradfield in December 2009, the first of six elections he contested successfully. He served for over fifteen years before retiring from the Parliament at the May 2025 election. From 2013 to 2022 he served successively as a Parliamentary Secretary, Minister and Cabinet Minister, with his front bench service largely in communications and infrastructure. He was the Minister for Communications, Urban Infrastructure, Cities and the Arts in the Morrison Government.

Before politics, Paul spent eight years on the Senior Management Team at Optus. He holds dual first-class honours degrees in law and economics from Sydney University and an MBA from Columbia University in New York, where he was a Fulbright Scholar.

What you’ll learn:

  • Where the money for roads actually comes from. Fuel excise, state and local revenue, and why the link between what drivers pay and what gets built is weaker than most people assume.
  • Why road user charging isn’t a new tax. The case that this is an existing charge being updated for technological change, not an additional impost, and why it has gone largely unnoticed for so long.
  • What the shift to electric vehicles does to the funding base. As more drivers move to hybrids and EVs, excise revenue falls. Whether that’s a fairness problem or simply the price of encouraging the transition.
  • What connected vehicle data makes possible now. Why measuring road use accurately is no longer a logbook exercise, and what that changes about the design of any scheme.

Timestamps:

  • 07:22 — Why it isn’t a new tax. The case laid out plainly: we’ve all been paying through fuel excise without noticing, plus what the 2026 surge in electric vehicle sales does to that revenue base.
  • 13:57 — What happened when he pushed this as minister. The 2015–17 attempt and why it failed, the awareness problem, and what’s changed with the Victorian High Court decision and the New South Wales scheme from July 2027.
  • 28:42 — What connected vehicle data changes. One-click consent, distance without location, and why prepaid vouchers, odometer photos and annual inspections are no longer necessary.
  • 38:48 — Two futures. Eroding revenue and a growing sense of unfairness, versus a transition he thinks we’ll look back on as a storm in a teacup.