ATA calls for urgent cut to road user charge

The Australian Trucking Association and its member associations are calling on the Federal Government to reduce the road user charge, in response to the difficulties being imposed on road freight operators by the recent halving of the fuel tax excise from 44.2 cents per litre to 22.1 cents per litre.

The ATA says the fuel tax cut, which will be in place for six months, has caused chaos for trucking businesses who, until March 29, paid an effective fuel tax rate of 26.4 cents per litre, as dictated by the Federal Government’s road user charge.

Trucking businesses normally receive the difference between the fuel tax rate and the road user charge as fuel tax credits on their activity statements. But trucking businesses will not receive fuel tax credits for their on-road fuel use during the period of the reduction.

As a result, the effective fuel tax reduction for trucking businesses is 4.3 cents per litre (26.4 cents per litre minus 22.1).

Related reading:
ATA backs zero-emissions push
Hot topics at Trucking Australia 22
ATA welcomes new developments on HVNL

The ATA says this has created several issues for the trucking industry. While fuel levy formulas in industry contracts may need to be renegotiated, freight company customers are now looking to see a reduction in freight rates based on the 22.1 cents per litre reduction, rather than the actual 4.3 cents per litre reduction. And truck businesses are also having to focus on managing their cash flow, given they will be paying less at the pump but will not receive on-road fuel tax credits on their activity statements to offset their other tax liabilities.

The ATA says the only way to resolve these issues efficiently is for the Federal Government to reduce the road user charge by 22.1 cents per litre, giving road transport operators the same benefit from the fuel tax reduction as light vehicle operators.