Roundup: Australia's first CBD car "tax" could help solve Melbourne's congestion

A congestion toll in the central business district (CBD) and new major roads top the Victoria's infrastructure wish list as Melbourne attempts to retain its title as the "most livable city in the world."

Infrastructure Victoria, formed last year as the state's first independent infrastructure body, released its first 30-year strategy on Tuesday, detailing 134 recommendations which, if implemented, would cost an estimated 76 billion U.S. dollars.

Most notable among the recommendations was a radical "tax" on motorists driving in Melbourne's inner suburbs and the CBD, which the report said "could dwarf the effect of any single major transport project."

The levy would charge motorists driving in the inner suburbs 1.5 U.S. dollars for each trip and 2.3 U.S. dollars for journeys into Melbourne's CBD.

Michael Masson, CEO of Infrastructure Victoria, said the levy would make 20 percent of motorists on the road during peak hour for reasons not related to work or education reconsider before travelling.

"If you took 5 percent of those trips off the road, we would feel the same improvement you feel during school holidays," Masson told the ABC on Tuesday.

"Transport network pricing, well designed, will play a much greater role in reducing congestion than any other major roads.

"It's definitely part of our key message when we look at the future. Doing things differently will be equally, if not more, important than adding new assets."

Modeling by consultancy firm KPMG suggested that the levy would reduce inner-city congestion by 35 percent and overall traffic in Melbourne by up to 7.4 percent.

The suggestion is sure to be met with much opposition, however, with Opposition Leader Matthew Guy telling News Limited that it would be "madness."

The Infrastructure Victoria strategy also said that building a freeway linking Melbourne's northern suburbs with the east, dubbed North East Link, was of utmost importance.

The agency estimated that North East Link would generate between 1 and 1.6 U.S. dollars for every 76 U.S. cents spent on the project.

"North East Link provides the greatest benefit for the cost," Masson told Fairfax Media.

East West Link, a controversial road project linking Melbourne's west with its east which Premier Daniel Andrews scrapped upon assuming office - at an estimated cost of 900 million US dollars - should also be investigated to determine if Melbourne needs the road, the report said.

The strategy also recommended that Victoria spend between 2.3 billion and 3.8 billion U.S. dollars on a rail network from the CBD to the Melbourne Airport in the next 15 to 30 years.

Outside of transport solutions, the report also suggested that the state government needs to build 30,000 new affordable houses at a cost of 7.5 billion U.S. dollars in the next 10 years.

Masson said there was already up to 100,000 Victorians living under "extreme financial stress" which he said was having "profound" consequences on productivity. Endit