Tolls should be placed on more Australian roads to cover rising maintenance costs, a new report has recommended.

The Competition Policy Review released on Monday lamented the state of Australian roads, labelling them the “least reformed of all infrastructure sectors”.

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“Lack of proper road pricing leads to inefficient road investment and distorts choices between transport modes, particularly between road and rail freight,” says the report.

Currently, road users are indirectly charged for road use through fuel excise and vehicle registration charges, but this could be replaced by more tolls on major roads and other popular routes.

Toll rates would vary between different routes and times of day, making road investment “more responsive to the needs and preferences of road users”.