Current projects / Review of heavy vehicle cost base allocators

We are conducting a review of the cost base allocators to provide assurance that current and future pricing systems are built on a sound understanding of how heavy vehicle use affects road construction and maintenance costs.

Review of heavy vehicle cost base allocators

  • Scoping > 
  • Analysing issues > 
  • Analysing options > 
  • Implementing

Purpose

Cost allocation is a central part of the PAYGO methodology which is used to calculate heavy vehicle charges.

The cost base allocators determine the share of total expenditure allocated to heavy vehicles and how expenditure is attributed to different types of heavy vehicles.

The accuracy of cost allocation is fundamental to heavy vehicle user confidence and the efficiency of road pricing.

We are conducting a review of the cost base allocators to provide assurance that current and future pricing systems are built on a sound understanding of how heavy vehicle use affects road construction and maintenance costs.

Outcomes of the review will also be considered as part of the development and testing of the Forward Looking Cost Base prototype.

Next steps

We commenced the review in December 2016. It involves identifying and analysing primary research on the causes of road wear, and carefully considering whether the evidence supports any change to how costs are allocated to heavy vehicles.

We will present findings and any recommendations to the Transport and Infrastructure Council by the end of 2017. 

Background

On 4 November 2016, the Council agreed to a number of actions to support the next phase of heavy vehicle road reform.

The Council asked the NTC to:

  • provide technical advice to governments following a detailed review of the heavy vehicle cost base allocators
  • a working prototype model for a forward-looking life cycle cost base for heavy vehicle charges.

Get involved

Contact us

Project Manager Brook Hall
Last Updated: 13/2/2017