Australia’s largest association for trucking operators has called for the Coalition to protect Fuel Tax Credits under their proposal to halve fuel excise for 12 months.
The National Road Transport Association (NatRoad) said Fuel Tax Credits must remain during any temporary reduction in fuel excise, to ensure the benefits of lower excise are felt by all road users.
“Under the former Coalition Government, the decision to halve fuel excise also meant the suspension of Fuel Tax Credits. This wiped out the benefits of the tax cut, throwing cashflow for small road freight businesses into crisis,” said Warren Clark, NatRoad CEO.
“We welcomed the restoration of Fuel Tax Credits under Labor back in 2022. The Coalition must now commit to protecting Fuel Tax Credits in full.”
NatRoad said the road freight industry is under significant cost pressure and can’t afford another hit to Fuel Tax Credits.
“Diesel, maintenance, vehicles and wages all continue to climb while major transport customers continue to push for lower freight rates,” Mr Clark said.
“About 98% of the road freight industry consists of small businesses. Average profit margins are just 2%.
“Small trucking businesses lack the economic bargaining power to simply pass on higher costs. Fuel Tax Credits have a heavy impact on cashflow management.
“Unless Fuel Tax Credits are protected for the duration of the policy, the benefits of lower excise will not flow on to small trucking businesses. Instead, many in the industry that keeps Australia’s shelves supplied could face financial ruin.”
The current Fuel Tax Credit rate for heavy vehicles on public roads is 20.3 cents per litre (until 30 June 2025). A 25.4 cents per litre reduction in fuel excise will result in a reduction of just 5.1 cents per litre for heavy vehicles (alongside the suspension of Fuel Tax Credits).
