The National Road Transport Association has warned that the planned return of the Road User Charge and an increase to fuel excise in July will add further pressure to transport operators and flow through to higher costs for Australian households and businesses.
NatRoad said the timing of the change was the wrong call, arguing that the current cost environment remains difficult for small and family-owned transport businesses. The association has called for the Road User Charge to remain suspended until the end of the year, saying the saving has helped some operators keep vehicles on the road during a period of rising business costs.
NatRoad CEO Warren Clark said the decision would place more strain on businesses already dealing with increases in fuel, insurance, finance and compliance costs.
“This is the wrong call and a kick to Australians who are already on their knees,” Mr Clark said.
“We have said over and over – the RUC should be suspended until the end of the year to keep the country going. For many smaller operators, the 32.4 cents per litre saving from cutting RUC was not a bonus — it was the difference between parking up and staying afloat.”
The Road User Charge is currently scheduled to return to 32.4 cents per litre from 1 July. NatRoad said reinstating the charge, alongside an increase in fuel excise, would hit smaller operators hardest because many have limited ability to absorb sudden increases in operating costs.
The association warned that higher road transport costs would eventually be passed through supply chains.
“When trucking costs rise, everything costs more,” Mr Clark said.
NatRoad also raised concerns about proposed changes to trust taxation rules, saying many small transport businesses had structured themselves this way to protect family assets, including the family home.
Mr Clark said the Government needed to properly consult with the road transport sector before progressing changes that could affect small operators.
“These are significant and complex changes,” he said.
“While it is pleasing the Government has provided for a significant transition period, the reality is a lot of our smaller operators have set themselves up this way to ensure that if everything went belly up, their kids would have a roof over their heads.”
While critical of the Road User Charge decision, NatRoad acknowledged some positive measures in the Budget, including the extension of the loss carry back provision and moves to improve diesel fuel security.
Mr Clark welcomed the loss carry back extension but said its timing meant it would not provide immediate support for businesses under pressure this financial year.
“The loss carry back extension is a sensible decision and one we welcome,” he said.
“But the reality is it won’t apply this financial year — which is when businesses are hurting most.”
NatRoad also welcomed the Government’s commitment to increasing diesel storage to 50 days, saying fuel security and resilience were important for the national freight task.
The association said it would continue advocating for practical measures to support road transport operators, including fairer road funding arrangements, better access to working capital, and policies that reduce unnecessary cost pressure on small transport businesses.
