ATA calls to delay truck tax increase

Now is "not the time" to be raising taxes and charges on those who transport the majority of Australia's freight, says representative body

The Australian Trucking Association has called for the Government to delay a proposed increase in the truck fuel tax and registration charges until July 1, 2021.

"In November, transport ministers identified a preference for the truck fuel tax and registration charges to rise 2.5 per cent from July 1, 2020, and then another 2.5 per cent from July 1, 2021," said ATA CEO, Ben Maguire.

"In total, this would see the effective tax on fuel increase 1.3 cents per litre. The national registration charge on a six-axle articulated truck would increase by $287.

"Ministers rejected officials' advice that charges needed to increase by 11.4 per cent, after industry representatives briefed them on the cost and demand pressures faced by trucking businesses.

"Since November, the economic outlook for the trucking industry has got even worse.

"The unprecedented bushfires in late 2019 and early 2020 significantly affected the revenue of many trucking operators and will continue to affect them into the future. And now the coronavirus is expected to have a greater impact on the Australian economy and supply chains than the bushfires.

"This year is not the time to be raising taxes and charges on the people who transport two thirds of Australia's domestic freight.

"In our submission to the National Transport Commission on the proposal, the ATA has recommended that the increases be deferred to July 1, 2021. Charges should then increase 2.5 per cent in 2021-22 and 2.6 per cent in 2022-23.

"Governments have directed the National Transport Commission to prepare a new heavy vehicle charging determination. The submission sets out the issues that the NTC should consider, including the need to exclude the cost of rebuilding bushfire affected roads from future charging calculations."

The ATA submission was approved by its Transport and Economics Committee, following a unanimous vote by the ATA General Council last year.

"The submission shows how ATA members are working together to advocate on behalf of the trucking industry nationally," Mr Maguire said.

ATA calls to delay truck tax increase

Tags