Overview

The Australian Land Transport Development Act 1988 was enacted to facilitate the development of land transport infrastructure by establishing the Australian Land Transport Development Account. This Account received a specified portion of excise and customs duty on motor spirit and diesel, termed the 'charge rate', which was then used to fund projects related to National Highways, Roads of National Importance, rail, and Black Spot projects, as well as research into land transport and road safety. The Act was administered by the Minister for Transport and Regional Services, who determined the charge rate after consultation with the Treasurer. However, since 1992-93, funding amounts have been determined in the Budget rather than through the charge rate mechanism, with the charge rate subsequently calculated to match government funding. The 2004-05 financial year marked the last time a charge rate determination was required under section 10 of the Act, which was subsequently repealed by the AusLink (National Land Transport—Consequential and Transitional Provisions) Act 2005. The charge rate for 2004-05 was set at 3.8544039055 cents per litre to ensure that the Account's credits equalled the payments made during that year, thereby achieving a zero balance as of 30 June 2005.

Scope and Application

The Australian Land Transport Development Act 1988, as supplemented by the determination under section 10 for the 2004-05 financial year, applies to the Australian Land Transport Development Account (ALTD Account) which receives a portion of excise and customs duty on motor spirit and diesel. The charge rate, determined at 3.8544039055 cents per litre, ensures that credits to the ALTD Account match the payments made from the Account during the financial year. The funds from this account are allocated for the construction and maintenance of National Highways, the construction of Roads of National Importance, rail and Black Spot projects, and for funding land transport and road safety research by approved research organisations. This determination does not affect any individual's rights or impose liabilities, and it marks the final year for which such a charge rate determination was required under the Act, as section 10 was repealed by the AusLink (National Land Transport—Consequential and Transitional Provisions) Act 2005.

Key Provisions

The Australian Land Transport Development Act 1988 (ALTD Act) was primarily concerned with the management of the Australian Land Transport Development Account (ALTD Account) and the allocation of excise and customs duties on motor spirit and diesel to fund land transport infrastructure projects. Section 10 of the ALTD Act, which was repealed by the AusLink (National Land Transport—Consequential and Transitional Provisions) Act 2005, allowed the Minister for Transport and Regional Services to determine the ‘charge rate’ in cents per litre, the proportion of excise and customs duty that would be credited to the ALTD Account. For the financial year 2004-05, the final year for which such a charge rate determination was required, the Minister determined a charge rate of 3.8544039055 cents per litre (section 10(2) and (5)). This charge rate was set to ensure that the credits to the ALTD Account would equal the payments made from the Account during that financial year, thus maintaining a zero balance in the Account as at 30 June 2005. This final charge rate determination was made to ensure a smooth transition to the new funding arrangements under the AusLink (National Land Transport) Act 2005, which took over the administration of the AusLink Investment Programme and Black Spot Programme in 2004-05. The obligations imposed by the ALTD Act on the relevant parties primarily involved the proper allocation and use of funds within the ALTD Account for specified purposes. The Act required that funds from the Account be used for the construction and maintenance of National Highways and Roads of National Importance, as well as for rail and Black Spot projects. Additionally, the Act permitted the use of these funds for land transport and road safety research by approved research organisations. The Act also required that the Minister, in consultation with the Treasurer, determine the charge rate in accordance with the Government's policy of providing sufficient credits to the Account to equal the funding provided by Government. The final determination of the charge rate for 2004-05 was made to ensure that the balance of the ALTD Account was zero as at 30 June 2005, reflecting the large scale increase in Australian Government funding for land transport infrastructure under the AusLink, which commenced in 2004-05. Under the ALTD Act, any breaches of the provisions governing the use of funds from the ALTD Account or the determination of the charge rate could have potentially led to civil or criminal consequences. However, the Explanatory Statement makes it clear that the charge rate determination for 2004-05 did not adversely affect any person’s rights nor did it impose any liabilities on any person. The determination was purely administrative, ensuring the proper accounting of funds for the final financial year before the ALTD Account was phased out. The maximum penalties for breaches of the ALTD Act are not specified in the Explanatory Statement, but they would typically include fines or other civil penalties for non-compliance with the Act's provisions, as well as potential criminal penalties for wilful or fraudulent breaches.