National transport regulatory reform
Inquiry report
Released 01 / 10 / 2020
The Australian Government asked the Productivity Commission to assess the economic impact of reforms to transport regulation agreed to by the Council of Australian Governments (COAG) in 2008-09. Those reforms relate to heavy vehicle safety and productivity, rail safety and maritime safety.
The Government also asked the Commission to recommend further reforms towards a more integrated national market for transport services.
This report was sent to Government on 7 April 2020 and publicly released on 1 October 2020.
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- National transport regulatory reform (PDF - 4624 Kb)
- National transport regulatory reform (Word - 6048 Kb)
- Key points
- Contents
- Supporting data
- COAG’s harmonisation reforms established national laws and national regulators for heavy vehicles, rail, and domestic commercial vessels.
- After almost a decade, the transition is nearly complete, albeit with some unfinished business:
- Western Australia and the Northern Territory do not participate in the national heavy vehicle regime
- unnecessary derogations from the Heavy Vehicle National Law (HVNL) and Rail Safety National Law (RSNL) continue
- some grandfathering provisions applying to domestic commercial vessels pose safety risks
- approval processes for heavy vehicle access to local roads still lag in some areas.
- By most measures, heavy vehicle and rail safety continue to improve, largely due to new technology and infrastructure investments.
- Safety regulation across the three modes is a mix of prescriptive and outcomes based regulation. Amending safety regulation to create a more flexible, outcomes-based approach should improve safety and lift productivity.
- The COAG reforms were expected to unlock large efficiency gains for heavy vehicle operators. While gains have been made, the forecasts were optimistic and have not been achieved.
- Road access for larger, more efficient trucks has improved, but significant bottlenecks remain on some major freight corridors.
- There are significant opportunities for COAG, regulators and industry to further promote safety and productivity.
Striking a balance between prescription and outcomes-based approaches in safety regulation:
- amending the HVNL to allow further progress to a tiered system, where operators can choose to follow prescriptive regulation or to develop more flexible and efficient ways to manage safety risks with the regulator’s approval
- removing unnecessary prescriptive detail from the HVNL.
Emphasising risk-based approaches to improving safety and consistency:
- removing unjustified derogations (road and rail) and grandfathering (maritime)
- ensuring effective oversight of Hire and Drive vessels in the maritime sector
- streamlining Australian Design Rule processes for heavy vehicles.
Improving infrastructure provision and management:
- progressing Heavy Vehicle Road Reform
- ensuring that investment decisions on major freight corridors are based on transparent cost-benefit analysis, which includes consideration of intermodal options
- encouraging more ‘as-of-right’ access for vehicles (where appropriate) and more efficient processes for assessing permit applications
- creating more consistent network rules for rail services.
Improving the evidence base for policy and regulatory decisions:
- establishing ‘no-blame’ incident investigation across the transport modes
- harnessing telematics data to inform infrastructure investment and access management
- ensuring that regulators improve their collection, analysis, and reporting of data, particularly in relation to safety outcomes and compliance costs.
- Cover, Copyright and publication detail, Letter of transmittal, Terms of reference, Acknowledgments, Contents and Abbreviations.
- Key points
- Overview
- Findings and recommendations
- Chapter 1 About this inquiry
- 1.1 National transport regulatory reform
- 1.2 What was the Commission asked to do?
- 1.3 What does the transport sector look like?
- 1.4 The Commission’s approach
- Chapter 2 Assessing transport safety regulation
- 2.1 A framework for transport safety regulation
- 2.2 A ‘tiered’ model of transport safety regulation
- Chapter 3 Harmonising transport regulation
- 3.1 History of transport regulation
- 3.2 The 2009 COAG national transport reforms
- Chapter 4 Is transport safety regulation nationally consistent?
- 4.1 Introduction
- 4.2 The harmonisation task in transport
- 4.3 Moving towards national regulation
- 4.4 How ‘national’ are the national laws?
- 4.5 National consistency of application and enforcement
- Chapter 5 Assessing the national regulators
- 5.1 Introduction
- 5.2 The National Heavy Vehicle Regulator
- 5.3 The Office of the National Rail Safety Regulator
- 5.4 The Australian Maritime Safety Authority
- Chapter 6 Has harmonisation of transport regulation improved safety?
- 6.1 Introduction
- 6.2 Heavy vehicle transport safety
- 6.3 Rail transport safety
- 6.4 Domestic commercial vessel transport safety
- Chapter 7 Have the COAG reforms raised productivity?
- 7.1 Introduction
- 7.2 Compliance costs and regulatory burden
- 7.3 Administrative costs
- 7.4 Access management of heavy vehicles
- 7.5 Examining changes in heavy vehicle productivity
- 7.6 Improving heavy vehicle access
- Chapter 8 Transport technology and data
- 8.1 Transport technologies
- 8.2 Transport data
- 8.3 Automation
- Chapter 9 Further reforms to improve transport safety
- 9.1 Introduction
- 9.2 Evolution of transport safety regulation
- 9.3 Safer freight routes, vehicles, and equipment
- 9.4 Harnessing data to improve safety
- 9.5 Improving incident investigation
- Chapter 10 Further reforms to improve transport productivity
- 10.1 Introduction
- 10.2 Driving productivity through safety regulation
- 10.3 Improving infrastructure provision and management
- 10.4 Heavy vehicle access management
- 10.5 Harnessing data and technology to improve productivity
- Appendix A Public consultation
- Appendix B Analysing transport safety outcomes and heavy vehicle productivity
- References
This spreadsheet contains data underlying charts in the Productivity Commission's inquiry report on National Transport Regulatory Reform. Data underlying maps are not included.