Toll Road Fees...are you being slugged

JayDee · Guru

Toll Road Fees...are you being slugged

dogbox · Guru

to buy Transurban would cost around 40 billion dollars

JayDee · Guru

Yes, I checked the share market (ASX) and their shares are trading around $12 plus with a yearly dividend of 60 cents but no franking credits.

Jay&Dee

Meredith · Senior Member

JayDee wrote:
One has to wonder why the Governments of Australia do not own the Transurban Toll Company. Here is why we should.

Because if they owned it they would have to put up the money to build the roads in the first place rather than Transurban paying for them. Basically its a loan and those doing the repaying are the toll payers. May not like paying tolls, but the money would have to come from taxpayers otherwise anyway, via either increased taxes or cutting other services.

dogbox · Guru

I was under the impression that the government built the roads then leased them to Transurban, I could be misinformed.

Corndoggy · Senior Member

I think the roads are built by those contracted by the appropriate governments but they are funded by those companies. Then those roads are least to these companies to operate, run and maintain them and part of the agreement is to collect toll charges to recover their money, and then some. I believe that when they did the road from the Tullamarine freeway out to the other side of the city here in Melbourne they were given a 30 year lease. I under 10 years they had made their money back. Then they did an upgrade on it and that lease was extended by15 years. Least think that is how it worked here. I could be wrong. Be interesting to see the true figures released to the public of the money they collect now.

Meredith · Senior Member

dogbox wrote:
I was under the impression that the government built the roads then leased them to Transurban, I could be misinformed.

Not in Melbourne, nor I understand in Brisbane, I expect it is the same in NSW but haven't ever looked closely at theirs.

Derek Barnes · Senior Member

I wonder why we still have to pay the full toll on roads such as the M7 in Sydney when it has constant construction going on and is limited to 80 the whole way, instead of 100.

Peter_n_Margaret · Senior Member

Toll roads equals a failure of government to provide the appropriate infrastructure for the population.
A couple of years ago, we spent a couple of months in Norway, They have more tunnels and bridges than you could comprehend. They charge a small toll until each is paid for and then they are free. After we left the country they sent a bill for tolls to the registered address of the vehicle in Germany. The bill for MANY tolls was about $25. There was no extra because we had not pre-paid.
This is one I saved on the dash cam.
youtu.be/FmWi9S6CMW4

Cheers,
Peter

Aus-Kiwi · Guru

Spot on Pete . We are not our gov priority! Both of them ! Why what has happened in US ! People are tired of the rhetoric! Cost of living etc

Peter_n_Margaret · Senior Member

They are currently constructing a major N-S freeway in Adelaide. The final stage will mostly be underground. Land acquisition is complete and construction has started.
There are no road tolls in South Australia and there will be none for this road.
Any Government is SA who introduced a toll would be out at the next election.
Cheers,
Peter

Aussie1 · Guru

Peter_n_Margaret wrote:

There are no road tolls in South Australia and there will be none for this road.
Any Government is SA who introduced a toll would be out at the next election.
Cheers,
Peter

Exactly the same in Western Australia.

Are We Lost · Guru

Peter_n_Margaret wrote:

There are no road tolls in South Australia and there will be none for this road.

So that means everyone in the state pays for it whether they use it or not. If those non users realised how much money was actually coming out of their pockets it may be a different story for the government.

I know toll roads are usually state based, so in this case only SA pays, but for the exercise ...

Would you be happy if all the Sydney and Melbourne toll roads had instead been motorways with their construction and ongoing maintenance paid for by all Australians (i.e. you) whille we Eastern staters got to use them for free?

-- Edited by Are We Lost on Thursday 21st of November 2024 06:58:43 PM

Ian G · Senior Member

I think the government should pay for the roads, perhaps have a temporary toll the same way they funded the West Gate Bridge, I remember throwing my 60 cents into a plastic bucket every time you went over it, now there is no toll. Transurban don't do it out of the goodness of their hearts, I think we pay the highest tolls globally. In Victoria we are paying $13.5 billion for an underground rail loop that probably less than 5% of the state will use or even know where it is, what's the difference ?

msg · Guru

What about a lottery instead of a toll, like the "Opera House Lottery". I seem to remember something like that. Then it's a voluntary payment with a possible reward. Can't beat that.

Are We Lost · Guru

If there was a lottery with 100,000 x $10 tickets and only half was paid out, that means a gross return of $500,000. Even ignoring the costs and allowiance for profit for those running it, if there were 1,000 such lotteries they would still not come close to paying for even the cheapest motorway (i.e. many years). And then there would need to be further lotteries for ongoing maintenance.

It would also mean falling revenue for other such gambling products. But the worst is that those least able to afford it are the typical lottery buyers.

Are We Lost · Guru

Perhaps the best solution to cover the high cost of motorways is for partial government funding, and a low toll for users.

Essentially the same as public transport.

msg · Guru

Have you forgotten Govt funding is taxpayer funding ? That is, you, and also those least able to afford it. At least, buying a lottery ticket is discretionary spending.

Are We Lost · Guru

No, not forgotten at all. Some say there should be no tolls, with the government (all of us) paying the whole lot. My suggestion strikes a balance between that and fully user pays.

msg · Guru

I don't agree

dogbox · Guru

who pays for the toll roads to be built ?

does Transurban pay or does the government pay, then farm it out to Transurban to run and maintain

Are We Lost · Guru

dogbox wrote:
who pays for the toll roads to be built ?

does Transurban pay or does the government pay, then farm it out to Transurban to run and maintain

I asked that question of AI (Copilot).

"Explain Transurban funding for Sydney toll roads"

Transurban is a major player in funding and managing Sydney's toll roads. Here's a breakdown of how they contribute:

1. Public-Private Partnerships (PPPs): Transurban often collaborates with government entities to finance and operate toll roads. These partnerships involve sharing the costs and responsibilities of construction, maintenance, and operation.

2. Toll Revenue: Motorists using Transurban-operated toll roads pay toll fees, which are a significant source of funding for these projects. This revenue is reinvested into road maintenance, upgrades, and new infrastructure projects.

3. Investment: Transurban has made substantial investments in Sydney's motorway network. For example, they have invested over $36 billion into the network to support the city's growing population and improve connectivity.

4. Government Support: The New South Wales (NSW) Government, along with the Commonwealth Government, has also invested billions of dollars into these projects. This support helps to fund the construction and expansion of toll roads.

Transurban's involvement ensures that Sydney's toll roads are well-maintained and continue to meet the city's transport needs.

I had thought Transurban funded everything, but from that answer it seems to follow the model of public transport ..... partially government funded (everyone) and partially a user pays system.

msg · Guru

So we the taxpayer are paying the majority of the costs. Including the profits of transuban. Win Win for transurban.