A new report by the Grattan Institute is calling for all major cities in Australia to impose a congestion charge on drivers during peak hours to ease heavy traffic in the CBD.
Lead author and the institute's transport program director, Marion Terrill, said new technology meant the charge was the easiest, cheapest and most effective way to reduce congestion in cities.
The idea behind the charge is that it would encourage people to catch public transport, walk, or ride their bike instead of facing a heavy fee for driving on heavily congested roads.
The report predicted a charge would result in 40 per cent fewer cars on the road during peak hour, and a 1 per cent speed increase across a city's entire road network — which was on par with speed increases from major road projects.