Most federal transport funding into passenger and freight rail for the next term, making up for decades of neglect: standard gauge nationwide via gauge-convertible concrete sleepers, single lines duplicated where feasible, train control systems upgraded, inland rail ports modernised, and short high-volume fast links such as Melbourne–Geelong or Sydney–Newcastle.
Science & TechnologyTransport
Transport · The Democrats' planThird-largest source of emissions today. Largest by 2030.
Transport is currently the third-largest source of greenhouse emissions in Australia, and is set to have the highest share of emissions by 2030. Electric vehicles reached around 12% of new car sales in 2025 when the net-zero path needs 52% within five years — while diesel was subsidised by $10.2 billion in 2024, 90% of our liquid fuel is imported, and road deaths have been rising since 2020. Our plan puts federal funding into rail, vehicle emission standards aligned with Europe and electrification instead of more freeways.
52% EV share of new cars needed within five years Australia reached around 12% of new car sales in 2025.
10.2bn Dollars of diesel subsidy in 2024 Leaving Australia with the lowest fuel taxes in the OECD.
54days Liquid fuel held onshore Australia imports 90% of the liquid fuel it uses.
1,314 Road deaths in 2025 Rising since 2020, after 30 years of decline.
Bend the EV curve
Slide the EV share of new sales — see what each level means for the net-zero path.
The plan at a glance
Align Australia's vehicle emission standards with Europe and use concessions to drive uptake: incentives for EV chargers including in apartment buildings, kerbside charging integrated with the grid using solar and vehicle batteries, cheaper and smaller electric cars, ongoing FBT concessions for plug-in hybrids, and removal of the five per cent import tariff on light commercial EVs.
More than half the people in our five largest cities have no access to frequent, all-day public transport. Fund the services and lanes that give them a choice — electric buses, dedicated transit lanes, elevated trains and trams, bike paths, off-road bike lanes and shared walkways.
A transport system this dependent on imported fossil fuels and imported vehicles means any serious disruption to supply threatens the production and delivery of everything we rely on, including essential food supplies. Electrified transport, domestic renewable energy, consideration of biofuel made from feedstock such as non-edible oilseeds, and support for electric-hybrid aircraft build the resilience the 2026 Strait of Hormuz closure showed we need.
One hundred and twenty years after federation, licences and registration are still fragmented. Unify them federally and replace both flat taxes with charges on actual vehicle usage — alongside better vehicle safety and a phase-out of diesel in passenger vehicles to cut dangerous particulate pollution.
Two ways to move a country
Where Australia's transport settings sit today, and where our plan points them.
Today
- Third-largest source of emissions, heading for the largest share by 2030, with light vehicles alone responsible for 60% of transport emissions
- Diesel subsidised by $10.2 billion in 2024; more than half of new cars are SUVs and 30% run on diesel
- 90% of liquid fuel imported and just 54 days held onshore, with the resilience opportunity of the 2026 Strait of Hormuz closure not taken
- More than half of big-city residents without frequent all-day public transport, and 1,314 road deaths in 2025
Our plan
- Emission standards aligned with Europe, disincentives for big emitters and EV sales lifted from 12% toward the 52% net-zero path
- The Fuel Tax Credit to mining companies removed, saving $4.8 billion, and diesel phased out of passenger vehicles
- Electrified transport, domestic renewables, consideration of biofuel from non-edible oilseeds, plus support for electric-hybrid aircraft
- Frequent all-day services, electric buses, transit lanes, off-road bike lanes and shared walkways, and better vehicle safety
The change that moves everything else
Federal transport funding still shaped around more roads and freeways
Most federal transport funding into rail — a two-track railway costs about a third as much as a six-lane freeway and carries more than three times the passengers
A two-track railway costs around one-third as much as a six-lane freeway but can carry more than three times as many passengers. Rail freight generates 16 times less carbon pollution than road freight per tonne-kilometre, and road accident costs are 20 times higher than rail for every tonne-kilometre moved. That is why most federal funding should go towards rail for the next term of office — to make up for decades of neglect of the rail network.
The full policy
Word for word — the platform as our members wrote it.
The Issues
The transport sector is currently the third-largest source of greenhouse emissions in Australia and will have the highest percentage share of emissions by 2030. Not enough is being done to achieve the target of net zero by 2050.
Vehicle emissions standards finally came into force on 1 Jan 2025, years after most other countries. The standards should encourage uptake of electric vehicles by forcing manufacturers to lower emissions, however, despite the growing uptake, Australia has gone backwards. More than half of all new car sales were SUVs and 30% of new cars run on diesel. While EV sales have increased to represent around 12% of new car sales in 2025, this must rise to 52% in the next five years to be on track to reach net zero by 2050.
The Federal Government subsidised diesel fuel by $10.2 billion in 2024 making fuel taxes the lowest in the OECD.
More than half of the population living in Australia’s five largest cities do not have access to frequent, all-day public transport, contributing to traffic congestion as people have few options.
Because Australia’s current transport system is highly dependent on the continued importation of fossil fuels and imported vehicles, any significant disruption to that supply threatens the production and delivery of all products including essential supplies of food. The 2026 closure of the Strait of Hormuz and disruption to Persian Gulf hydrocarbon supplies should be a political opportunity for Australia to increase its resilience by investing in domestic fuel sources, especially renewables and electrified transport, but the Labor Government has failed to take advantage of it.
In terms of safety, road fatalities remain a leading cause of accidental death, with 1,314 fatalities recorded in 2025. Road deaths have been increasing since 2020, after declining for 30 years before that.
One hundred and twenty years after federation, driver’s license and vehicle registration taxation remain fragmented across Australia. Unifying these systems at the federal level would benefit all Australians. Both of these taxes are flat and should be replaced by taxes on actual vehicle usage.
Our Plan
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More public transport — Public transit systems, bike paths, dedicated transit lanes, electric buses, elevated trains and trams, ‘shared and active’ transport
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Rail over road — invest much more in passenger and freight rail systems
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Fast inter-city trains — Short high-volume inter-city fast rail links such as Melbourne-Geelong or Sydney-Newcastle
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Electric vehicles — Align Australia’s vehicle emission standards with Europe and drive the transformation to electric transport and use concessions to drive uptake
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Remove the Fuel Tax Credit to mining companies saving $4.8b
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Phase out use of diesel for passenger vehicles to cut dangerous particulate pollution
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Better vehicle safety
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Back the 2-wheel strategy with more off-road bike lanes and shared walkways
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Standardise vehicle registration and driver licenses
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Electric aircraft — Support and encourage electric-hybrid aircraft
The Evidence
The advantages of rail. Most federal funding should go towards rail for the next term of office to make up for decades of neglect of the rail network.
A two-track railway costs around one-third as much as a six-lane freeway but can carry more than three times as many passengers. Trains cost less, use less space, produce little pollution and less noise. Rail freight generates 16 times less carbon pollution than road freight per tonne kilometer traveled, making it the clear choice to reduce emissions. Road accident costs are 20 times higher than rail for every tonne kilometer moved.
Rail projects needed are:
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Standardisation of rail track across Australia, starting with roll-out of gauge-convertible concrete sleepers that allow rapid conversion of the track to Standard Gauge once all the sleepers are in place. Gauge standardisation is critical to allow freight to move across Australia unimpeded by “break of gauge” issues.
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Duplication of single-line tracks where feasible and necessary.
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Upgrading of train control systems.
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Upgrading of inland rail ports to allow rapid movement of freight between trains and trucks.
Transport emissions. Light vehicles are responsible for 60% of all transport emissions and growing. The answer to this problem is not more expensive roads and freeways nor excessively large cars. Governments must drive the changes necessary with tighter vehicle emission standards, disincentives for big emitters like SUVs, incentives for EV chargers, including in apartment buildings, kerbside charging and integration with the power grid using solar power and electric vehicle batteries, and cheaper, smaller electric vehicles. There should be ongoing FBT concessions for plug-in hybrid vehicles and removal of the five percent import tariff on light commercial EVs.
Fuel security. Australia imports 90% of liquid fuel used and holds just 54 days of fuel supply onshore. To overcome the risk of shortage biofuel production should be considered made from feedstock such as non-edible oilseeds.
References
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Australia should grow its own fuel
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Transport sectoral plan: a breakdown of how the transport industry will reach net zero
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2024 Sector Pathways Review: Transport (Climate Change Authority)
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Aurizon Rail — Rail vs. road freight calculator
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Going off-road: Policy shift needed to get freight on rail
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Australian Railway Association
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Consolidated Land and Rail Australia Pty Ltd (CLARA)
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Australia’s fuel stockpile is perilously low, and it may be too late for a refill (The Conversation, 2018)
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PTUA — Myth: Freeways are cheap, and public transport expensive
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Electric vehicle taxes not needed to offset falling fuel excise revenue (The Age, June 2021)
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Federal Chamber of Automotive Industries — Road User Charging (May 2021)
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Liquid fuel security: a quick guide — May 2020 update (APH, May 2020)
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Bio-aviation Fuel: A Comprehensive Review and Analysis of the Supply Chain Components (Frontiers in Energy Research, July 2020)
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The electric car revolution putting Australia and the rest of the world to shame (The Age, October 2022)
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Hydrogen cars won’t overtake electric vehicles because they’re hampered by the laws of science (The Conversation, June 2020)
Make it happen.
Policies like this only become law when enough people push. Push with us.