Tax on drivers to ease traffic congestion

The New South Wales and Victorian Governments are being urged to consider a congestion fee for motorists to cut down traffic.

Traffic congestion in Melbourne Source: AAP

Researchers at the Grattan Institute say this tax is the most effective way to ease road congestion that's costing billions of dollars in lost productivity.

In London, a congestion fee has been in place at peak hours in the city for a decade, as well as in Singapore and Stockholm.