ATA: Set truck charges over three years

The Australian Trucking Association is calling on the Government to adopt a staged series of truck charge increases over three years from 2022/23, instead of hitting truck business with a one-off increase of 16.5 per cent. 

2021 PAYGO Determination 

The ATA’s recent submission to the National Transport Commission relates to the 2021 PAYGO determination, which is used to calculate the road user charges that businesses with trucks pay on fuel and truck registration in all Australian states and territories bar Western Australia and the Northern Territory. 

The ATA submission highlights how even large truck businesses struggle to increase their rates in line with the Consumer Price Index (CPI), and that a series of smaller increases over several years would be of major assistance. 

“The NTC is looking at three options for truck charges,” says the Acting CEO of the ATA, Bill McKinley (pictured). 

“One option would be to increase charges by 16.5 ?per cent, but this overall figure would include a 22 per cent increase in the road user charge and registration charge increases of 85 per cent for some vehicles. 

“We are arguing that charges should increase 2 per cent in 2022-23, followed by a 3 per cent increase in each of 2023-24 and 2024-25. 

“To maximise certainty for the industry and governments, the charges should be set for the whole three-year period covered by the determination, with the NTC publishing information for the industry and customers about how the charges will change." 

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A fairer go 

The submission argues that trucking businesses should only be charged directly for major road projects that have been endorsed by an independent infrastructure agency such as Infrastructure Australia. 

“At present, the charging system is entirely driven by governments’ spending decisions,” says Mr McKinley. 

“It requires trucking operators to pay an outsize share of the cost of road investments that are not freight priorities and higher costs due to inadequate project assessment and selection.” 

Retain CSO discount 

The submission argues strongly against the NTC’s proposal to remove the community service obligation (CSO) discount in the charging system for double and triple road trains serving remote communities. 

“The CSO for remote communities should not just be retained; it should be expanded as part of a whole of government response to the report of the House of Representatives Indigenous Affairs Committee on food pricing and food security in remote Indigenous communities,” he said. 

“The updated PAYGO model is of great importance to the trucking industry and its members, which is why it is vital the new model achieves effective, value-for-money results for industry, governments and the community." 

To read the full submission click here.