A new pricing system for road use is integrated in the revised plan on competition reform which the Council of Australian Governments (COAG) has accepted.

The council would be considering an offshoot of the recommendation under the Henry tax review to impose a congestion charge on vehicles plying busy roads. It will also consider proposed changes to heavy-vehicle charges.

In July, Infrastructure Australia argued that congestion pricing is necessary for government to be able to fund transportation infrastructure development and maintenance. Under the congestion pricing scheme, road use fees will be imposed during peak hours and on busy roads.

Increasing urban congestion would bring freight volumes to double over the next 20 years. Trucks in Australia could be charged based on mileage and weight. Systems that use technologies, such as satellite-based navigation, is being considered for the new pricing system.

Under the revised plan, the Australian Transport Council will examine high-level options for reform by the end of 2010 and present recommendations on charging arrangements to COAG by December 2012.

By December 2014, the commonwealth and states would be expected to implement the reforms. The Productivity Commission would be reviewing the new system after four years.

The revised plan also includes a review of the economic regulation of nationally significant ports.