Truckies’ fuel tax rise offset by safety measures

22 May 2012 – Heavy road transport is set to be hit with a $698 million fuel tax rise come July 1, 2012 but will benefit from an injection of funds into truck rest areas and bridge upgrades announced in the recent Federal Budget.

• have a gross mass of 4.5 tonne or more but less than 20 tonne
• are designed for transporting passengers or goods, and
• are undertaking an 'eligible trip' or journey on a road.

The fuel tax rise coincides with the government's decision to increase many truck and trailer registration charges, partially offset by a reduction in A-trailer fees. Registration charges for many rigid trucks however will increase substantially, with the charge on a 4.5 tonne two-axle truck increasing from $418 in The Road Use2011-12 to $542 in 2012-13.

Chairman of the Australian Trucking Association (ATA) David Simon warned that trucking businesses will continue to experience tough times in 2012-13 in face of subdued household consumption and investment conditions, causing fewer goods to be bought and in turn, fewer trucks needed to transport these goods.

'Trucking businesses are under continued pressure from their customers to cut costs. In addition, many are facing deteriorating payment terms, with customers not paying their bills for 60 days or more,' Simon said.

Transport ministers met on May 18 as part of the Standing Council of Transport and Infrastructure (SCOTI) where the trucking industry lobbied for them to rethink the increase in fuel and registration fees. Although the meeting saw further advancements in the national heavy vehicle, rail safety and maritime safety regulations, no mention was made of the increase in fuel and registration fees.

Despite the rise in costs, Simon welcomed the extra $140 million the government has pledged to spend on truck rest areas and other productivity measures. He said the cash injection would help reduce the shortfall in the number of truck rest areas on the road.

'The fatigue laws require truck drivers to take regular breaks, but there simply aren't enough rest areas. The government has built or upgraded more than 70 rest areas under its existing funding program, which expires in June, but there is still a long way to go.'

'The program will also fund productivity measures like bridge upgrades to enable us to use vehicles like B-doubles and B-triples on more routes. These trucks carry more freight than conventional semitrailers, so you can do the same job with fewer trucks, leading to safer, more productive and more environmentally friendly outcomes,' Simon added.

The Road User Charge will affect fuel tax credit rates that can be claimed for heavy vehicle use. For new fuel tax credit rates from July 1, 2012, click here.

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