Key Takeaways
- Admin fees for tolls in Victoria can lead to financially stressed motorists accumulating criminal debts of up to $450
- The size of admin fees is considered "unjustifiable and totally disproportionate" to the cost of invoicing motorists
- Removing admin fees and implementing broader reform is needed to stop Transurban from making excessive profits at the expense of struggling Victorians
- Concessional rates for toll roads are necessary to ensure access is fair, unlike public transport, utility bills, or car registration
- Transurban is removing admin fees in NSW as part of a broader toll reform, but operates under a different legal framework in Victoria
Introduction to the Issue
The issue of admin fees for tolls in Victoria has been brought to light by senior financial counsellor Jo Parkin, who states that these fees make it harder for financially stressed motorists to pay their toll notices immediately. As a result, a toll as small as $3.27 can grow into a criminal debt of up to $450 enforced by Fines Victoria. This is a significant concern, as it can lead to further financial hardship for individuals who are already struggling to make ends meet. Parkin emphasizes the importance of having the initial amount stay as small as possible, having a good hardship program, and not having admin fees to help people deal with the matter promptly and avoid it developing into a criminal matter.
The Impact of Admin Fees
Inner Melbourne Community Legal managing lawyer Shifrah Blustein agrees that the size of the admin fees is "unjustifiable and totally disproportionate" to the cost of invoicing motorists. She believes that removing admin fees would be a good first step, but broader reform is needed to stop Transurban from making excessive profits at the expense of struggling Victorians. This includes Fines Victoria no longer enforcing Transurban’s debts at taxpayers’ expense. Blustein also highlights that toll roads are accepted as an essential service, but unlike public transport, utility bills, or car registration, there are no concessional rates available. This lack of concessional rates can make it difficult for low-income individuals to access toll roads, exacerbating the issue of financial hardship.
The Need for Concessional Rates
The need for concessional rates for toll roads is a pressing concern. As Blustein points out, toll roads are an essential service, and it is unfair that there are no concessional rates available. This is in contrast to public transport, utility bills, or car registration, which all have concessional rates available. The government must work with toll operators to require them to provide concessional options, ensuring that access to toll roads is fair for all individuals, regardless of their financial situation. This would help to alleviate the financial burden on low-income individuals and prevent them from accumulating criminal debts.
Transurban’s Response
A Transurban spokesperson has stated that the company is removing admin fees in NSW as part of a broader toll reform led by the Minns government. However, they also noted that Transurban operates under a different legal framework in Victoria. The spokesperson claimed that admin fees recover the cost of identifying vehicle owners, issuing notices, and meeting regulatory requirements. While this may be the case, it does not justify the excessive size of the admin fees, which can lead to significant financial hardship for individuals. Transurban has also stated that it supports making changes to continuously improve the way customers manage and pay their tolls, including digital solutions and payment options that provide greater visibility and flexibility.
The NSW Toll Road Review
The NSW toll road review, conducted by former ACCC chair Allan Fels, has called on Transurban to issue invoices electronically, rather than by mail, and to consolidate them for multiple trips taken over several days. This would help to reduce the administrative burden on motorists and make it easier for them to manage their toll payments. The review has also highlighted the need for greater transparency and flexibility in toll payment options. By implementing these changes, Transurban can work towards providing a more customer-friendly and efficient toll payment system.
The Impact of Toll Increases
The maximum CityLink toll for a single car trip is set to increase from $12.25 to $12.38 on January 1. A 24-hour pass to use both the West Gate Tunnel and CityLink will be $38.52 for cars and $70.03 for utes and vans. This increase in toll fees will likely have a significant impact on motorists, particularly those who are already struggling financially. The West Gate Tunnel, designed as an alternative to the West Gate Bridge, will have its utility tested for the first time from Friday night when annual maintenance on the bridge gets underway. The West Gate Bridge will be reduced from five lanes to two in each direction until Monday afternoon, with the city-bound lanes remaining closed until January 4. Transport Victoria has warned motorists to expect delays of up to an hour, which will likely cause significant disruption to traffic flow.
Conclusion
In conclusion, the issue of admin fees for tolls in Victoria is a significant concern that needs to be addressed. The size of these fees is unjustifiable and can lead to financially stressed motorists accumulating criminal debts. Removing admin fees and implementing broader reform is necessary to stop Transurban from making excessive profits at the expense of struggling Victorians. The need for concessional rates for toll roads is also a pressing concern, and the government must work with toll operators to require them to provide concessional options. By implementing these changes, we can work towards providing a more fair and efficient toll payment system that does not exacerbate financial hardship.
