Tax Breaks for Australian Motorists, says AAA

The Australian Automobile Association (AAA) has argued the case for motoring tax reform this week, at the national Tax Forum held in Canberra on October 4 and 5.

The AAA is an umbrella group for state motoring organisations such as the NRMA and RACQ, and co-ordinates the activities of these bodies at a national level. The AAA is one of many industry and consumer advocacy groups to argue for change at the Tax Forum.

Australian motorists face a major tax burden

According to the AAA, motorists are excessively-taxed in Australia. In the 2011/12 financial year, Australian motorists will pay $13.5 Billion in fuel excise. This comes on top of the various state-level taxes, such as stamp duty and vehicle registration costs.

Fuel excise "must be abolished" as part of long term reform

The official platform of the AAA is that the fuel excise should be binned, as part of a major restructuring of Australia's taxation system. The AAA also advocates abolishing the luxury car tax and state-level stamp duty on vehicle purchases.

According to a media release, the AAA is "open to looking at future options for road pricing and funding for land transport", but Australian motorists "cannot be expected to carry a heavier tax burden than they already bear".

Transport tax should be spent on transport infrastructure

The Australian Automobile Association is also advocating that the money raised from motoring tax be used more appropriately. One of the AAA's main arguments at the tax forum was that not enough revenue from motorist tax was actually being used to improve the quality of road transport in Australia.

Australian motorists are being "short-changed", according to the AAA, meaning that they are not seeing a significant benefit from the substantial amount of tax they pay each year.

Increased investment in transport infrastructure will be beneficial for everyone

At the Tax Forum, the AAA sought to emphasise the far-reaching benefits of investing in roads infrastructure, such as increased transport efficiency and improved standards of safety for all motorists.