Road transport is an element of the Australian transport network, and contributes to the Australian economy. Australia relies heavily on road transport due to Australia's large area and low population density in considerable parts of the country.

Another reason for the reliance upon roads is that the Australian rail network has not been sufficiently developed for a lot of the freight and passenger requirements in most areas of Australia. This has meant that goods that would otherwise be transported by rail are moved across Australia via road trains. Almost every household owns at least one car, and uses it most days.

Victoria is the state with the highest density of arterial roads in Australia.

The total annual cost of the vehicle economy is A$316.12 billion. Less than half of this figure (including externalities) is paid for by motor vehicle users, which challenges "the belief that drivers fully bear automobility costs".

Costs and funding

Funding and responsibility for Australia's road network is split between the three levels of government; Federal, State and Local. Because of long distances, low population densities, and widely separated major settlements, the costs of and funding for roads in Australia has been, historically, a major fiscal issue for all levels of government, especially Federal and State. The popular phrase 'the tyranny of distance', also the title of a famous historical work, captures the central role of transport in Australian policy, producing many conflicts. It was not until the Bland enquiry in VictoriaSir Henry Bland, Reports of the Board of Inquiry into Victorian land transport, Government of Victoria, 1972 that there was an attempt to outline the complex questions in economic theory and practice of determining and measuring road costs and their allocation. In 1978-80 the McDonell Enquiry reviewed road and rail freight transport in New South Wales and its affected cities and regions, (the 'hub' of the Australian freight transport system). It was set up because of the 'truckies' blockades and national disturbances which disrupted access to all mainland capitals. These were largely sparked by the levels of road taxes. This enquiry developed the first comprehensive theoretical and measurement system for assessing and allocating road costs. This system was subsequently applied more widely, and then extended, with later studies, for the establishment of current national policy and principles. Fuel tax is around 50 cents per litre. Fuel sales in Australia (per year) are around 16 billion litres of gasoline, and 32 billion litres of diesel.

The Federal government provides funds under the AusLink programme for several funding programs including: National Projects National Network Maintenance, essentially the National Highway, comprising the main freeways and highways linking the major cities of Australia Roads to Recovery Program - provides funding allocations to councils in each State or Territory Black Spot Program (improvements to high accident risk spots) Strategic Regional Program Innovation and Research Funding for Local Roads

Other highways and main roads linking regional centres are funded by the respective state governments. Local and minor roads are generally funded by the third tier of government, local councils.

The Business Council of Australia in its Infrastructure Action Plan, estimated that in 2004, road infrastructure was under funded by A$10 billion.

Roads and highways

Different standards of roads are generally called by various names. With wide variations in population across the nation, the name of a road does not always reflect the construction or capacity of a particular road.

Freeways, motorways, expressways and tollways

Freeways are major roads with more than one lane of traffic in each direction designed for higher speed operation. They have barriers or wide median strips separating traffic travelling in opposite directions, and grade-separated intersections without roundabouts or traffic lights in the main route. Some toll roads are called motorways or tollways to avoid perceived difficulties with charging people to use a freeway. Most Australian capital cities have one or more freeways across, past, or leading to them.

When limited-access highways began to be built in Sydney in the 1950s, beginning with the Cahill Expressway, they were provisionally named expressways, but in the 1960s Australian transport ministers agreed that they be called freeways (like in the United States and other countries). The Cahill Expressway has kept its original name. Melbourne's South Eastern Freeway (now called the 'Monash Freeway') was the second freeway to be opened in Australia, in 1962. However, it was originally only a short road.

Victoria has the most extensive major arterial (freeway) network in the country, including tollways.

Highways

There is an Australian national highway network linking the capital cities of each state and other major cities and towns. The national highway network is partly financed by the Australian Federal Government, but the bulk of funding comes from the individual states.

Each Australian state government maintains its own network of roads connecting most of the towns in the state. Highways and major roads include Metroads, National Routes, State Routes and routes numbered according to the Alphanumeric Route Numbering System.

Some highways in remote areas of Australia are not sealed for high traffic volumes and are not suitable for the whole range of weather conditions. Following heavy rains they may be closed to traffic.

Minor roads

Local governments maintain the vast majority of minor roads in rural areas and streets in towns and suburbs.

Urban Urban minor roads in Australia are generally sealed, have a 50 km/h speed limit and most are illuminated at night by street lighting.

Rural Many rural roads are not sealed but are built with a gravel base or simply graded clear and maintained from the available earth.

Outback

Driving on minor outback roads off a sealed road can be dangerous, and motorists are generally advised to take precautions such as: seeking local advice ensuring that someone is aware of your travel plans remaining with vehicle in case of a breakdown awareness of animals such as kangaroos, especially at night travelling with an adequate supply of drinking water

Failure to observe these precautions can result in death. Much of Australians outback is in the mostly unpopulated area in the centre of the Australian mainland. Much of the outback roads are unmaintained or unpaved dirt roads. With potentially high heat in the summer, muddy ground after rainfall, and distance from services, it is often advised not to travel these rugged routes without caution.

Ferries The Spirit of Tasmania is a service operated by TT-Line with two ocean-going ferries providing a "road" link between Tasmania and the mainland. There is also a Searoad ferry service across the opening of Port Phillip connecting Sorrento and Queenscliff. Kangaroo Island is connected to Cape Jervis by the SeaLink service.

Many of the road crossings over the lower Murray River are provided by government-operated cable ferries.

Road rules and regulation

Economic regulation Although trucks had played important local carriage tasks since their introduction to Australia, it was not until the 1970s that improved highways and larger trucks allowed the rapid development of long haul operations and intense competition with rail transport. This situation led to the industry disturbances (see section Costs and funding above) on the causes of which the Commission of Enquiry into the NSW freight industry reported. The Enquiry made a series of recommendations for reform involving economic principles, legal provisions, financing, economic regulation and safe operating conditions but found that effective action could not be taken at the State level. It would require re-examination of the central issue of freedom of interstate transport as embodied in Section 92 of the Constitution of Australia, and the development of appropriate national responses. With this basis, the National Freight Inquiry, completed a comprehensive survey of the national industry with major proposals. This resulted in long running development of new governance arrangements and policy for economic regulation of both road and rail freight transport. As a result, following the cooperative Federalism initiative of the 1990s, these matters are the responsibility of the National Transport Commission, within the general oversight of the Australian Transport Council of Ministers.

Operating regulation

Vehicles in Australia are right-hand drive, and vehicles travel on the left side of the road. The laws for all levels of government, have been mostly harmonised so that drivers do not need to learn different rules as they cross state borders. The usual speed limits are 100 km/h outside of urban areas (110 km/h on some roads where signposted). Major routes in built up areas are 80 km/h and 60 km/h, with streets generally limited to 50 km/h, often not separately signposted. Until the end of 2006, major highways in the Northern Territory had no speed limit, but now the maximum speed there is 130 km/h where signposted on the Stuart, Barkly, Victoria and Arnhem Highways, with a default of 110 km/h on all other rural roads where not otherwise signposted.

Speed limits are enforced with mobile and fixed cameras as well as mobile radar guns operated by police and state road authorities such as VicRoads. Heavy transport operators must record their driving time in a log book and take regular rest periods and are limited in how long they can drive without longer sleeping time.

If two roads with two lanes each way meet at a roundabout, the roundabout is marked with two lanes as well. Traffic turning left must use the left lane, and traffic turning right must approach in and use the right lane, travelling clockwise around the island in the centre. Traffic going straight through may generally use either lane. Vehicles must indicate their intended direction when approaching the roundabout, and indicate left when passing the exit before the one they intend to leave on. Vehicles entering the roundabout must give way to vehicles already on it.

Licensing

Typically, the first stage of licensing is gaining a learners permit. The minimum age to get this in most states is 16, and it requires:

passing a test of knowledge of the road rules special L plates to be displayed, typically displaying a black L on a yellow background reduced blood alcohol limits compared to unrestricted drivers (acceptable BAC varies by state) a fully licensed driver to be in the car with the learner at all times, who must also be under the legal alcohol limit (0.05 BAC in most states) some states will impose maximum speeds for learner drivers (for instance, New South Wales learners are limited to 90 km/h) There is No requirement for professional training during the Learning or Probationary licensing periods.