The Cycling Promotion Fund has just released research which suggests that tax incentives are considered an effective motivation to encourage more Australians to cycle to work. The CPF has made a submission to the Henry Tax Review calling for changes to the current tax system including considering tax incentives for bicycles.
The CPF says it’s terrific to see that the ACT Government is considering allowing public servants choose to purchase a bike or bus ticket instead of a car, as part of their salary package. The City of Sydney is also calling for a review of the current tax system which actively encourages people to drive and does not reward those who make sustainable transport choices by cycling or catching public transport.
According to the Lord Mayor “people who contribute towards reducing congestion and pollution and the burden on our health system should be rewarded”. After months of public consultation, the Henry Tax Review panel is currently finalising its recommendations which will be presented to the Treasurer by December 2009.
Whilst I am normally too shy to blow my own horn, I still wonder if the BTA had a small amount of influence here. At the community cabinet in Perth in April 2009 we asked Peter Garret this questions:
“In Australia, bicycles outsell cars . The use of bicycles for commuting reduces pollution and is the most effective way to spend public health money.
Will the government consider fiscal measures that provide disincentives for the use of cars and encourage cycling for commuting, for instance via taxation and increased spending on bicycle related infrastructure?”
The submission from the Cycling Promotion Fund to Ken Henry can be found here:
http://www.cyclingpromotion.com.au/images/stories/downloads/FinalSubmissionSTC16Oct08.pdf
[280Kb PDF download]