Road plan hits dead end

Tony Abbott has sought to head-off proposals to charge motorists for every kilometre they drive.

The Prime Minister signalled there would be no support for a plan floated by the Productivity Commission in a draft report into better funding the nation's infrastructure needs.

The commission has backed a plan under which fuel excise would be dropped but motorists, monitored by GPS or wi-fi systems in their cars, would pay for every kilometre they drove.

Motorists would also pay more if they drove on roads during peak periods.