The Australian Trucking Association has urged the Federal Government to extend its current fuel tax relief for heavy vehicle operators until at least the end of August, warning that rising diesel prices could place further pressure on already vulnerable transport businesses.
Fuel excise and the road user charge on truck fuel are scheduled to return to their normal rates on 3 August.
Under the Government’s stepped restoration plan, the road user charge is set to rise from 16.4 cents per litre to 32.4 cents per litre.
The charge is used to calculate the fuel tax credits received by operators of on-road heavy vehicles through their monthly or quarterly business activity statements.
ATA CEO Mathew Munro said maintaining the current rate until 31 August would provide essential support as global fuel market uncertainty continued.
“Trucking was already in a precarious position before the war, and it is clear that the crisis isn’t over,” Munro said.
He pointed to the collapse of the ceasefire, renewed disruption in the Strait of Hormuz and attempts by Houthi rebels to restrict oil shipments from the west coast of Saudi Arabia as signs that fuel supply risks remained elevated.
According to the ATA, the average terminal gate price for diesel has now climbed above $2 per litre in every Australian capital city.
Munro warned trucking operators could soon face the combined impact of higher pump prices and lower fuel tax credits.
“It will be difficult for many trucking businesses to pay more for fuel and at the same time receive less in tax credits as the 16 cents per litre increase in the road user charge begins to bite,” he said.
The ATA has proposed that the road user charge remain at 16.4 cents per litre until 31 August, followed by a review later that month to determine whether the relief should continue.
The association said the Government’s fuel relief measures introduced since the conflict began had helped many transport businesses remain viable.
