PAYGO Charges

What is PAYGO system?

The PAYGO (Pay-As-You-Go) model was created to manage the costs associated with heavy vehicles using the roads. Road costs include all the components which are needed to maintain and keep the roads in good condition. Heavy vehicles, in this case, are those weighing over 4.5 tonnes. The combination of registration charges along with fuel excise charges is what determines the PAYGO charge for a vehicle.

The current PAYGO system has consistent charges for heavy vehicle usage that cover both the expenses of building and maintaining roads and the ongoing costs related to heavy vehicles using them.

In this trial, we are conducting a detailed comparison between two different methods of charging for road usage. The current PAYGO system, where vehicles pay for road usage based on the fuel consumption and other factors against the proposed method which is a distance-based road user charging approach by calculating charges based on the distance covered by each vehicle or the entire configuration.

Charge components of PAYGO charges

Vehicle Registration charges
Net Fuel Excise charges

Example of PAYGO charge calculation

Vehicle A has the following fuel consumption and fuel usage information available

As National Pilot generates mock invoices on a monthly basis, the example below illustrates the PAYGO calculation for one month.

Fuel purchased with excise - 1000 Litres
Public road fuel usage or total chargeable fuel used = 98% (980 litres)
Non-public road fuel usage = 2% (20 litres)

Calculating the Gross Fuel Excise Charge

Total fuel for which excise is paid = 1000 Litres
Fuel excise charge (Diesel) = 0.488 $/L* (Based on ATO charging table)
Gross fuel excise charge = $488.00 (Total Fuel for which excise is paid * Fuel excise charge)

Calculation Fuel Tax Credits (FTC) Claimable

Fuel tax credit for public road = 0.20 $/L* (Based on ATO charging table)
Fuel tax credit for Non-Public road = 0.488 $/L* (Based on ATO Charging table)
Fuel tax credits claimable for public roads usage = $196.00 (Public road fuel usage * FTC for Public road)
Fuel tax credits claimable for non-public roads usage = $9.76 (Non-public road fuel usage * FTC for non-public road)
Total fuel tax credits claimable = $205.76 (Sum of FTC claimable on Public and Non-Public road)

Calculating the Net Fuel Excise

Net fuel excise charge = $282.24 (Gross fuel excise charge - Total fuel tax credits claimable)

Vehicle Monthly Registration Charges

Monthly registration charges for the vehicle configuration = $83.33*

Where can I find my registration charges?

Visit understanding your registration charge code page for more information on state wise registration charges.

PAYGO (Road User Charging)

PAYGO (RUC) charges for the month = $365.57 (Sum of net fuel excise charge and registration charges)

Looking for more information on how PAYGO model works?

Please visit PAYGO Model page from NTC(National Transport Commission) to understand the model in detail.

Note - * Rates change periodically. The rates provided in the examples are solely intended for illustrative purposes and may not reflect current charge conditions.