Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Joel Robinson

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Seasoned Victorian apartment developer <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a> has logged more than $400 million in sales in its luxury apartment project Palmera Residences at Northcliffe on the Gold Coast.&nbsp;

Central Equity Director Karl Kutner said the sales result reflected a combination of location, product quality and delivery certainty with the project already under construction by building powerhouse Multiplex.&nbsp;

"Surpassing $400 million in sales since launch is a significant milestone and an outstanding endorsement of <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera Residences</a>,” he said.&nbsp;

"We believe one of the key reasons for this strong result is the confidence purchasers have in knowing the project is under construction with Multiplex. Buyers are increasingly looking for certainty. They want to know that the project they commit to today will be delivered by an experienced team with a proven track record."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365782]

Kutner said it was clear there was still high demand for luxury projects that offered certainty of delivery.&nbsp;

“We are in a market where many residential developments have faced delays due to rising construction costs, labour shortages and financing challenges,” said Kutner.&nbsp;

"But having construction underway has provided our buyers with resounding confidence backed by more than 40 years of development delivery by Central Equity combined with construction by one of Australia's most respected construction companies."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365785]

Central Equity is one of Australia's most experienced privately-owned property developers. Over more than four decades, the company has delivered in excess of 85 residential developments including 10,000 apartments and many thousands of stand alone homes.&nbsp;

Located on Garfield Terrace at Northcliffe, between Surfers Paradise and Broadbeach, Palmera Residences occupies one of the Gold Coast's most sought after beachside locations. The development has been designed to appeal to owner occupiers seeking premium residences that combine generous living spaces and resort style amenities.&nbsp;

Palmera Residences will feature an exceptional collection of resort style amenities, including two swimming pools: a generously sized family pool with safe shallow zones for relaxed recreation, and a 20 metre lap pool positioned to maximise all day sunlight.&nbsp;

Residents will also enjoy exclusive access to wellness and recreational facilities including a magnesium pool, sauna, yoga studio, expansive fitted gymnasium, resident lounge, outdoor BBQ’s&nbsp;and indoor and outdoor dining areas, together with a dedicated concierge and luxurious hotel inspired entrance foyer.&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365767]

A unique feature at Palmera Residences has been designed to enhance the Gold Coast lifestyle which includes both indoor and outdoor gymnasium facilities, together with thoughtfully designed indoor and outdoor dining and entertaining areas. A corner café has also been incorporated to provide residents with a destination for their everyday needs.&nbsp;

Kutner said buyer demand had been broad based with purchasers attracted from interstate as well as throughout South East Queensland.&nbsp;

"We're seeing strong interest from owner occupiers, lifestyle buyers and people relocating to the Gold Coast. Many purchasers have been searching for a premium beachside residence where quality, design and delivery are equally important."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365771]

Kutner said the sales milestone was an important achievement, but the focus remained firmly on delivering an exceptional development.&nbsp;

"While reaching $400 million in sales is an important milestone, our priority remains delivering a project that exceeds purchaser expectations,” he said.&nbsp;

"Palmera Residences has been designed to become one of the Gold Coast's landmark residential addresses, and we look forward to welcoming our purchasers to their new homes."&nbsp;

There are a limited number of residences remaining in selected configurations with pricing from $2,950,000 to $8,950,000. Palmera Residences is also crowned by expansive penthouses with wrap around views.

[smartcode_project_cta:default project_id=108274]

Construction certainty and strong buyer demand drive major sales result for luxury Gold Coast development

Palmera Residences fly out the door as sales pass $400 million

National property developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has appointed BINAH as its construction partner for Quartet, its new Brisbane apartment development in the undersupplied suburb of <a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>.

Located just two kilometres from the Brisbane CBD and moments from key 2032 Olympic precincts, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet</a> will deliver 131 one, two, three, and four-bedroom apartments priced from $1 million to $4.2 million, combining elevated design with a wellness-focused lifestyle offering.&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=368000]

Goldfields’ Chief Executive Officer, Lachlan Thompson, said the appointment of <a href="https://www.apartments.com.au/builders/binah-constructions">BINAH</a> marked an important milestone for the project.&nbsp;

“Bringing BINAH on board as our construction partner will allow us to bring our vision for Quartet forward with a team that has a proven track record of delivering high-quality residential projects,” Thompson said.&nbsp;

“We’ve taken a considered approach to progressing the site because we wanted to deliver the whole package. Buyers ultimately back great developers, great projects and great builders, and with Quartet, we’ve made sure all three line up.

“People want certainty, they want to know the project will be built, that the homes will be delivered as promised, and that the developer stands behind the quality of what they create. That’s something Goldfields has built its reputation on over many years.”&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=367993]

BINAH’s Managing Director, Khalil Hafza, said the company was proud to be partnering with Goldfields to deliver Quartet.&nbsp;

“Quartet is an exciting project to bring to life, particularly given the level of detail in the residences and the extensive rooftop amenity planned for the building,” Mr Hafza said.&nbsp;

“Our focus is on delivering a high-quality build that brings that design vision to life and creates homes residents will enjoy for many years.”&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=367999]

The facilities at Quartet have been feared towards the roof, with a&nbsp;25 metre lap pool, spa, sauna and cold plunge, and a communal barbecue area and alfresco.

Town planning was designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by Melbourne-based architecture firm Cera Stribley.

<a href="https://www.apartments.com.au/interior-designers/cera-stribley">Cera Stribley</a> Co-Founder and Managing Principal, Dom Cerantonio, said the project responds to both its riverside setting and Brisbane’s evolving urban character.&nbsp;

“Quartet has been designed to sit comfortably within its riverside context, offering a refined take on urban living through well-planned, generously proportioned residences that will stand the test of time,” Mr Cerantonio said.&nbsp;

“An emphasis on natural light, natural textures and carefully selected finishes from timber and marble to premium appliances, creates calm, considered interiors designed for comfort and long-term liveability.”&nbsp;

Construction of Quartet will commence in July 2026, with completion anticipated in Q4 2028.

[smartcode_project_cta:default project_id=108736]

Construction to commence on 131-residence tower designed around wellness-focused living

Goldfields appoints BINAH for Quartet apartments in Milton

Peak Hour

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EXPERT OBSERVERS
Congestion charging should be introduced in Australia’s largest cities, as Grattan Institute’s <a href="https://grattan.edu.au/report/why-its-time-for-congestion-charging" target="_blank">latest report</a> shows. Our analysis also finds that the people who commute to the Melbourne and Sydney CBDs by driving are two to three times as likely to earn six-figure salaries as other Australian workers.
One of the main concerns about charging drivers who use the busiest roads at the busiest times has been about fairness. But sensible congestion charges could be designed to avoid burdening financially vulnerable people who lack alternatives to using particular roads at busy times.
Congestion charging is gaining traction in cities around the world as a proven method to manage congestion. <a href="https://ops.fhwa.dot.gov/publications/fhwahop08047/02summ.htm" target="_blank">London, Singapore, Stockholm</a> and <a href="https://www.citylab.com/transportation/2015/09/milan-abruptly-suspended-congestion-pricing-and-traffic-immediately-soared/404521/" target="_blank">Milan</a> all have congestion charging schemes. New York City legislators have approved plans to introduce it in <a href="https://www.pri.org/stories/2019-05-30/new-york-city-gets-nations-first-congestion-pricing-plan" target="_blank">Manhattan</a>.
<h2>It’s better than building new infrastructure</h2>
Sydney and Melbourne are big, global cities, but with growth and prosperity comes congestion. The solution from the <a href="https://theconversation.com/transport-promises-for-election-2019-the-good-the-bad-and-the-downright-ugly-115138" target="_blank">federal</a>, <a href="https://theconversation.com/how-the-nsw-election-promises-on-transport-add-up-112531" target="_blank">New South Wales</a> and <a href="https://theconversation.com/how-much-will-voters-pay-for-an-early-christmas-eight-charts-that-explain-victorias-transport-election-106782" target="_blank">Victorian governments</a> has been to throw money at huge infrastructure projects. Politicians like promising infrastructure because large benefits can be targeted at key voters, while <a href="https://grattan.edu.au/report/roads-to-riches/" target="_blank">the costs are spread across all taxpayers</a>.
But this means many people are paying to alleviate some people’s congestion. And the relief from new infrastructure tends to be short-lived. In Australia’s fast-growing cities, extra public transport capacity at peak times gets chewed up quickly, while new freeways tend to fill with new traffic soon after opening.
This doesn’t mean governments should stop investing in infrastructure. But it does raise the question of whether spending billions of taxpayer dollars is the best or fairest way to tackle congestion.
We usually think of congestion as a force that slows us down, without thinking about how we slow everyone else around us. Congestion charging fixes this by charging a modest fee to use the busiest roads. Drivers then have to decide whether it’s worth making their trip at that time on that road.
Drivers who need to travel at peak times are always able to do so – they just need to pay a fee. Heavy users will end up paying more for using an in-demand resource. The most flexible drivers will save money by travelling later, or elsewhere, or by another mode. And this means getting out of everybody else’s way.
Charging is also fairer than the licence-plate approach of Mexico City or Beijing, where cars are banned from driving on certain days depending on their licence plate numbers. These heavy-handed restrictions ignore the fact that people’s travel needs vary from day to day. Why ban a driver on the day of a job interview?
<h2>But what about all the drivers on low incomes?</h2>
It’s fair to ask whether congestion charging will burden the most vulnerable people in society. And the answer depends on the design of the scheme.
First, the people who we should really worry about are those who: are struggling financially; frequently or urgently need to travel on charged roads or to a charged area; and lack good alternatives to driving at that time on those roads.
A sensible congestion charge would target only the busiest roads and areas – think central business districts (CBDs), major freeways and key arterial routes – and only at times of high demand such as peak hour.
So if Sydney or Melbourne were to introduce a peak-period congestion charge around their CBDs, how many vulnerable people would be affected? Hardly any.
Our research shows the drivers who would pay the charge tend to be doing just fine. It’s mostly commuters and people driving as part of their job – think tradespeople and couriers. Those travelling for work could pass the cost on to their customers – every tradie driving to the CBD would face the same charge, so no one would gain or lose a competitive advantage.
 
<h2>Most CBD drivers are well-off</h2>
And the CBD commuters? They tend to earn much more than the typical Australian.
Grattan Institute analysis shows most people driving to the Sydney CBD for work each day earn six-figure salaries. Their median income is nearly A$2,500 a week – about A$1,000 a week more than the typical income for full-time workers in Sydney.
It’s a similar story in Melbourne. The median full-time worker driving to the CBD earns nearly A$2,000 a week – about A$650 more than the typical full-time worker in Melbourne.
<a href="https://images.theconversation.com/files/296601/original/file-20191011-188835-frfve2.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/296601/original/file-20191011-188835-frfve2.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
And these CBD commuters are also generally well-served by public transport. The CBD is the most accessible location in Sydney and Melbourne, with multiple train lines and bus or tram routes running through it.
That’s why most people travel to the CBD by public transport. In Sydney, barely one in six full-time CBD workers actually commute by private vehicle. In Melbourne, it’s only a quarter. But these workers typically earn a lot more than the people on CBD-bound buses, trams and trains.
<a href="https://images.theconversation.com/files/296358/original/file-20191010-188823-11gu703.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/296358/original/file-20191010-188823-11gu703.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> <a class="source" href="https://grattan.edu.au/report/why-its-time-for-congestion-charging" target="_blank">Grattan Institute</a>, Author provided
Perhaps surprisingly, drivers to the CBD are more likely to come from inner, richer parts of the city – think Mosman and Double Bay, not Penrith or Parramatta. It’s the same in Melbourne: more people drive from Kew and Richmond than Broadmeadows or Dandenong. Even those driving in from lower-income areas typically earn more than most of their neighbours.
This means the number of genuinely disadvantaged people who would be burdened by a congestion charge is small. As for one-off trips to the CBD – maybe for a specialist appointment – these are by definition infrequent and can often be rescheduled to the middle of the day.
State governments should consider discounts for low-income people with impaired mobility. However, wide-ranging exemptions would badly undermine the effectiveness of the congestion charge – <a href="https://www.citylab.com/transportation/2018/04/londons-congestion-charge-needs-updating/557699/" target="_blank">as happened in London</a>.
<a href="https://images.theconversation.com/files/296357/original/file-20191010-188792-2qbjjm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/296357/original/file-20191010-188792-2qbjjm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> <a class="source" href="https://grattan.edu.au/report/why-its-time-for-congestion-charging" target="_blank">Grattan Institute</a>, Author provided
Congestion charging is a smarter way to improve Australia’s largest cities and fears that it would be unfair are overblown. It should be the centrepiece of a mixed strategy to tackle congestion. The NSW and Victorian governments should introduce <a href="https://www.jstor.org/stable/10.7249/mg748jat-metro-mcla.36?seq=1#metadata_info_tab_contents">cordon charging</a> around the CBDs of their capitals within the next five years.
<a href="https://theconversation.com/profiles/marion-terrill-169480" target="_blank">Marion Terrill</a>, Transport and Cities Program Director, <a href="http://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a> and <a href="https://theconversation.com/profiles/james-ha-596825" target="_blank">James Ha</a>, Associate, <a href="http://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/three-charts-on-why-congestion-charging-is-fairer-than-you-might-think-124894" target="_blank">original article</a>.
</body></html>

jrobinson-rf4aSBido9

Three charts on why congestion charging is fairer than you might think

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<img src="https://counter.theconversation.edu.au/content/65027/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Road user charging is probably the best idea we have to reduce congestion and to enable better decisions on road investment. Average travel speeds in our cities are decreasing, and congestion is only likely to worsen as our population continues to grow.
Urban Infrastructure Minister Paul Fletcher recently gave an important speech, albeit largely unnoticed, in which he made the case for a universal road user charging scheme. Charging people to drive has previously been the dream of transport and economic policy wonks – serving politicians tend to see the idea as political poison.
Fletcher trod gently, cautioning his Sydney Institute audience that “there is a lot of work to do” and that any move in this direction would be “a ten to 15-year journey”. It is still remarkable that a federal minister even took these first steps. 
Fletcher warned of the potential impact of electric vehicles on fuel excise revenue, but automated vehicles represent an even bigger change.
The future of road use is made unclear by the looming arrival of these vehicles. Despite predictions that these could be the answer to traffic congestion, complications include the interaction of autonomous and traditional vehicles and the complexities of human behaviour.
Autonomous vehicles could even lead to greater congestion. The ease of travel in these vehicles might encourage travellers to take more trips as they reduce the time cost of being stuck in traffic by being able to read emails and stay connected while the car drives itself. Empty vehicles travelling to pick up goods and passengers could further clog roads.
Thus it is prudent to target road congestion now, especially when current strategies aren’t helping much. Building more road capacity or even improving public transport can’t solve congestion.
The best strategy is management of demand via a pricing mechanism that reflects the cost of the congestion caused by one more vehicle on the road. With prices that vary by location, time of day and distance travelled, such a scheme would encourage people to take non-essential trips at a different time, or not at all.
The charge could be efficient, as the trips that are discouraged are those for which the congestion caused outweighs the benefit derived. And it would be fair: drivers adding to the delay faced by others pay more, while those who drive in non-congested areas or at non-peak times pay less.
The ability to observe road users’ willingness to pay for road space will also give a better signal to planners of where additional road capacity will be of value to the community. 
<h2>Don’t treat it as a revenue raiser</h2>
So Fletcher deserves plaudits for raising the issue. But he got one important thing wrong: he said that the fuel excise tax funds road spending.
Pointing out that fuel excise receipts would fall with the advent of more fuel-efficient vehicles, and electric cars in particular, he argued for a road user charging scheme on the ground that it would raise revenue for road spending.
Linking fuel excise to road funding is a furphy and gets us onto the wrong track at the very start of the road-pricing journey. Fuel excise is merely one source of general government revenue and is not in any way hypothecated, meaning pledged by law to be spent on a specific purpose – in this case roads.
It is no more relevant to say that falling excise revenues will put road funding under pressure than it is to say this will put pressure on health spending or the age pension.
Furthermore, about 75 percent of road funding comes from state and local government revenue, while fuel excise is a federal tax. It is true that falling fuel excise receipts would add to the federal government’s deficit problems. But there is no reason why a loss of fuel excise revenue must be replaced by another charge on motorists, or why motorists alone should fund additional road spending.
<h2>Take care to avoid an inefficient, distorting tax 
</h2>
The government should take a holistic approach to repair its pressured budget. It should restrict the most wasteful spending, wherever it is, and introduce or increase the most efficient, fair and simple taxes. It is not helpful to limit our thinking to motorist-based taxes to solve that part of the budget problem caused by falling fuel excise receipts.
The other problem with introducing road user charging as a revenue raiser rather than a congestion reducer is that a scheme designed on those terms is likely to produce poor results.
If we approach the task asking how we can maximise revenue, we’ll end up with charges on the wrong roads, at the wrong times, priced to maximise financial return rather than optimise congestion. For example, we might charge heavily on major roads, just to increase revenue, when some targeted charges on minor roads might do more to reduce traffic. In short, we’ll have one more inefficient, distorting tax.
So kudos to the minister for opening the debate. Let’s talk about road user charging, but let’s talk about what it should really achieve.
If we start by asking the right questions, road user charging could be the best congestion management policy we’ve seen in Australia. It could improve the driving experience without the need for big spending on more road capacity, and make sure we get the most economic and social value from our roads.
Marion Terrill is transport program director, Grattan Institute and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/marion-terrill-169480" target="_blank">here</a>.
Owain Emslie is associate, Grattan Institute and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/owain-emslie-250445" target="_blank">here.</a>
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jchancellor-FAypfDUnLy

Road user charging belongs on the political agenda as the best answer for congestion management

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GUEST OBSERVER
Most mathematical modelling used to guide our economy is simplified and only modified when it becomes so out of touch that it is dangerous.
When the Atlantic cod fishery collapsed the model being used to set fishing quotas was still suggesting the fishery was healthy. In retrospect it seems a kind of madness to have kept using it.
Traffic modelling in Australia is now similarly out of touch. A recent study by the Bureau of Transport Industry and Resource Economics modelled the future of traffic in Australian cities. If it had been a mere academic study it would not be dangerous, but it is now being used to justify massive road spending.
The report suggests that travel times will blow out and road congestion will cost the economy more than A$50 billion. Congestion, it seems, is out of control and will engulf us all, with terrible economic consequences for Australian cities.
<h2>Modelling relies on heroic growth assumptions</h2>
In order to reach these numbers the report had to make assumptions about growth trends in car use per capita. The high-growth scenario is included in the red box in Figure 1 below.
<a href="/images/2016/01/18/image-20160113-8411-b2a1bi.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/18/image-20160113-8411-b2a1bi.jpg" alt="">
As is common in such modelling, a low-growth scenario is also modelled and then the future is taken to be in the middle.
The high-growth scenario can be seen to reverse a trend in car use per capita that appeared to be well set after a peak in 2003-04. This peak car phenomenon has been found in all developed cities and has been analysed by many commentators including ourselves.
Understanding the peak car phenomenon would appear to be a basic requirement before attempting future scenarios that wipe it out completely. However, this report has not ventured into such questions. Instead, it continues the methodology used for the past 30 years.
<h2>Travel time reality means car use has peaked</h2>
The fundamental problem is that the model does not understand how cities work. Travel time is seen as something that just expands as our cities of car-dependent suburbs grow outwards.
However, the Marchetti travel time budget of just over an hour on average has been found to apply universally across all cities. Some people can go beyond an hour and some much less, but the average everywhere is an hour. This has been found over and over to apply in every city.
If people find it hard to live with so much time “wasted”, they move to somewhere more within their travel time budget. If the overall options in housing, jobs and travel become so dysfunctional that people are forced to travel beyond their time budget then the issue becomes highly political: elections are fought over infrastructure and housing options. Cities adjust; they don’t keep expanding travel time.
It is possible to understand the global peak car phenomenon in terms of cities hitting the Marchetti wall. In our data, cities everywhere began to grow in their traffic congestion whether or not they built freeways or extra road capacity. This was because these just filled very quickly.
<h2>Rail projects unclog the urban arteries</h2>
Rail projects, however, could go around, over or under the traffic. Hence, over the past 30 years, rail lines have become more travel-time-efficient than traffic arteries. Many people, especially the young and wealthy, began to move back into areas where public transport was well provided.
The rejuvenation of central and inner areas is not just because they are cool and trendy but because they offer reduced travel time. Car use per capita goes down when there is less need to travel, especially by car.
This model does not consider this to be significant enough to consider in forecasting scenarios for Australian cities. It crudely projects a totally car-based-and-growing set of futures. It barely considers the remarkable global turnaround in the building of rail systems and the rejuvenation of cities.
Scenarios where these urban trends are considered to continue (rather than suddenly dying as suggested by Figure 1, followed by inevitable growth in car use) would make much more sense. This is the way planning is being done in cities like London.
The evidence in London and other cities – with good public transport alternatives and competitive door-to-door journey times – is that with fixed road capacity traffic volumes stay constant (or slightly decline). All the growth goes on to public transport and the car-based share of travel falls – down from 46% for residents of London in the 1990s to 32% now.
The scenarios for London are therefore all about how best to build public transport and land-use options that can enable economic growth to occur sustainably, rather than trying to increase road capacity. Similar considerations can be seen to be happening elsewhere around the world.
<h2>Did an ‘Abbott effect’ skew the modelling?</h2>
So why have we refused to change our modelling and are still trying to justify massive road capacity increases?
Traffic modelling reports like this take about two years to produce. What was happening around two years ago was the election of Tony Abbott with his commitment to spend some A$40 billion on urban roads and nothing on urban rail.
Huge road projects in Melbourne (East-West Link), Sydney (West Connex), Brisbane (Gateway) and Perth (Freight Link) were all announced before any assessment. Their rationale was very shaky and most of these projects have now either failed or are failing.
Each road project also has large impacts on their urban economies. These are dangerous as they destroy so much of the urban fabric necessary for rejuvenation and take away the ability of governments to pay for the more important urban rail projects on their agendas.
The upturn in the graphs in Figure 1 seems to be an Abbott effect. It is rather amusing now that this report came out just as Malcolm Turnbull took over and began talking up urban rail and urban regeneration.
Such models should be put into the museum and as a better sense of where our cities can be going. This report can be easily passed over, but if the thinking behind it stays the impact on our cities will be very damaging.
 
Peter Newman is professor of sustainability, Curtin University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/peter-newman-1858" target="_blank">here</a>.
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