Road tolls would reduce traffic: report

TOLLS and congestion fees may be the answer to reducing traffic and improving the state of Australian roads.

An Infrastructure Australia (IA) report, released on Tuesday, argues there is reduced accountability for governments to provide quality infrastructure under the current taxpayer system.

"To get the infrastructure we want, when we want it, we need to pay more as users," the report said.

It says congestion pricing in London has reduced traffic by 21 per cent, increased average travel speeds by 37 per cent and reduced road emissions.

Revenue raised by the fee is invested back into public transport, contributing to increased bus and passenger rail patronage.

IA also called for a single national fund to be established to roll over the many different infrastructure investment sources.

The fund would account for over $100 billion for projects such as the National Broadband Network and clean energy funding.

AI says the current funding model has overlapping purposes, different assessment frameworks and different decision making mandates.

Australia's future economic performance would largely depend on how its major cities are planned, the report says.

This will be particularly important considering each of Australia's five biggest capital cities will nearly double their population by 2056.

Denser cities was the answer to more productive living, it said.

The closer businesses are to each other and to a deep pool of skilled labour, the report argued, the higher their productivity.

For individuals, this proximity also means lower costs when looking for a job.

The Australian Industry Group welcomed the report's findings.

"The time is right to make reforms that will facilitate greater and more astute investment, including from the private sector, and encourage efficient use of infrastructure," the group's chief Innes Willox said.

The Urban Development Institute of Australia said addressing Australia's infrastructure problems must be a key priority for the next federal government.

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