The Australian Trucking Association has backed the Coalition’s proposed Fuel Price Shield, saying an automatic reduction in fuel taxes would give transport operators greater certainty during periods of soaring global oil prices.
Under the proposal, fuel excise would be halved automatically when the two-week average price of Brent crude remained above US$100 a barrel. The heavy vehicle road user charge would also fall to zero while the measure was operating.
ATA Chair Mark Parry said the automatic trigger was an important feature because operators would know when assistance would begin without waiting for the government to announce an emergency response.
“Trucking operators are doing it extremely tough right now, with the average retail price of diesel exceeding 270 cents per litre last week,” Parry said.
“For an industry that’s integral to keeping Australia’s economy going, it’s unacceptable.”
Fuel remains one of the largest and most volatile operating expenses for heavy vehicle fleets. Rapid increases can place immediate pressure on cash flow, particularly where freight contracts do not allow operators to adjust rates or fuel levies quickly.
“Operators need certainty. If fuel prices spike, they shouldn’t be left in the dark wondering what support will be available to them and when it will take effect,” Parry said.
“An automatic trigger would give that certainty. Operators would not have to wait for a government to make on-the-fly decisions.”
According to the ATA, trucking businesses would save about 27 cents per litre at the pump under the proposal. Their fuel tax credits would also increase from 21.3 cents to almost 27 cents per litre, with the additional credit claimed through their business activity statements.
The Fuel Price Shield would remain in place until the eight-week average Brent crude price fell below US$100 a barrel or the measure had operated for three months.
While supporting the proposal, Parry warned that temporary tax relief would not remove all the additional costs facing transport businesses.
He said operators needed to speak openly with customers about increasing freight rates or adjusting fuel levies to recover higher diesel costs.
For fleet operators, the situation highlights the importance of having transparent fuel-adjustment mechanisms in customer contracts. Without them, businesses can be forced to absorb sudden cost increases while waiting weeks or months to receive payment.
The ATA is also asking the Fair Work Commission to reactivate its fuel cost recovery order, which would help eligible operators recover rising fuel expenses.
In a separate case, the association is arguing that trucking businesses should be paid within 30 days of issuing an invoice.
“At a time when fuel prices are skyrocketing, operators can’t afford to wait months to be paid,” Parry said.
“Delays in payment from large customers place significant cashflow pressure on even medium-sized trucking businesses.”
Although the Fuel Price Shield remains a Coalition proposal, the ATA’s support reflects the scale of the pressure facing road transport businesses and the need for predictable mechanisms that respond quickly when global oil prices surge.
