The Australian Competition and Consumer Commission notes the announced rises in Victorian transport fares due to the Goods and Services Tax of around 5 per cent for metropolitan and 2 per cent for country tickets.
"While no fare increase is ever welcome, the ACCC notes that the rises are substantially below 10 per cent because of cost savings. This is due especially to wholesales sales tax reductions and to diesel fuel reductions (which principally affects country fares) and a range of other factors having been taken account of", ACCC Chairman, Professor Allan Fels, said today.
"The Victorian Director of Public Transport has made a public compliance commitment to the ACCC confirming that cost savings from the New Tax System will be passed on to Victorian consumers. "The Director of Public Transport, Mr John Taylor, has consulted with the ACCC about its methodology. The ACCC is of the view that the methodology is consistent with its Pricing Guidelines and the Trade Practices Act 1974".