VICTORIA'S freeways would be turned into German-style autobahns under a radical new plan for the state's roads.

Liberal Democratic Senator David Leyonhjelm has called for speed limits to be removed and reset by motorists rather than "anonymous unelected bureaucrats".

Under the proposal, Mr Leyonhjelm wants all states to adopt the 85th percentile formula which involves speeds being monitored then reset at the speed that 85 per cent of drivers travel at.

The method is based on the assumption that the majority of drivers are reasonable and do not want to crash.

Police and VicRoads would be tasked with monitoring speeds over a one to two- month period.

Suburban streets would be exempt from the rule change.

"Instead of being treated like sinful children and a source of revenue, motorists should be the ones who decide what the limits are," Mr Leyonhjelm said.

The New South Wales senator-elect said the National Road Safety Strategy was lying to the public by claiming "no person should be killed or seriously injured" while driving.

"That's only achievable if speeds are reduced to about 20km/h …. fairly obviously that's unacceptable to the community," he said.

His plan would abolish some 40km/h zones.

"If there were no police, no speed cameras anywhere near them (motorists), nobody would travel at 40km/h."

He believed speeds of 140km/h would probably be set on the state's freeways.

"I think the public would travel at that speed if speed limits were removed."

A spokesperson from the Department of Infrastructure and Regional Development stood by their comment that "no person should be killed or seriously injured on Australia's roads".

"Since the introduction of the National Road Safety Strategy, road deaths across the nation have declined by 16 per cent," the spokesperson said.

Mr Leyonhjelm has formerly argued that the public should carry weapons to help curb gun crime.

He also proposed a plan to charge asylum seekers $50,000 to come to Australia "through the front door".

christopher.gillett@news.com.au