Budget 2023: Not much for the trucking industry

The 2023–24 financial year Budget, announced last night by Federal Treasurer Jim Chalmers, shows the government is aiming to do precious little for the trucking and transport industry.

The worst of the news in the Budget is that the Federal Government said it will increase the road user rate for heavy vehicles by six per cent per year over the next three years.

The Budget states: “The Government will increase the Heavy Vehicle Road User Charge rate from 27.2 cents per litre of diesel by six per cent per year over three years from 2023–24 to 32.4 cents per litre in 2025–26. This will decrease expenditure on the fuel tax credit by $1.1 billion over four years from 2023–24.

“The change to the Road User Charge was a decision of the Infrastructure and Transport Ministers in April 2023 to contribute to road maintenance and repair.

Commenting on the Budget, Australian Trucking Association Chair David Smith said that while we do have to pay our share, the system of determining what that share is needs to be fixed.

“The Australian Trucking Association has always accepted that it must pay its fair share of road maintenance and improvements,” Mr Smith said.

“But the basis of determining that fair share, the so-called PAYGO system, is broken.

“Road user charge reform is desperately and urgently needed,” he added.

Under the new Budget, if you own a business that turns over less than $50 million a year, you’ll be able to tap into a new federal incentive program that will pay for a fifth of the cost of installing up to $100,000-worth of more energy-efficient electrical appliances such as air conditioners and battery banks in workshops and factories.

The Budget also confirmed that the instant asset write-off for small businesses on items costing up to $20,000 will be extended for at least another year.

The HVIA said the Labor Government’s first full-year Budget presents opportunities for the heavy vehicle industry, however, it “leaves us wanting” in other areas.

HVIA Chief Executive Todd Hacking said the demand for heavy vehicles has been remarkably resilient, but between inflation, supply chain issues and the lack of available skilled workers, our manufacturers have struggled to meet demand.

“Bringing the Budget back to surplus is great, but there are ongoing challenges with inflation that are still a pressing concern in terms of denting business confidence,” he said.

Mr Hacking said announcements around skilled migration quotas is vital to replenish and grow dwindling stocks of trades people.

“We welcome increased focus on skilled migration in the Permanent Migration program, which HVIA called for in the last election; this is a key promise being delivered by the Albanese Government.

“Other positive announcements include investment and programs encouraging women to take up trades, plus plans to expand the number of fee-free TAFE and Vocational Education training packages.”

Mr Hacking said a pipeline of new tradespeople needs to be built and maintained from multiple angles.

“HVIA and our members are proactive in promoting career paths in the heavy vehicle industry to school students.

“In fact, we will be hosting close to 2000 students from around 50 schools to the Brisbane Truck Show next week.

“They will watch the country’s best young automotive technicians compete in the HVIA National Apprentice Challenge, and hear from careers ambassadors who will talk to them about the diverse and rewarding career paths our industry offers.

“On top of that, however, we need to bring in tradespeople from overseas. Australia’s population is growing, our freight task is growing and with that, demand is growing.

“Investment in skilled migration is an investment in Australia’s economic wellbeing and in securing our manufacturing sovereignty, which the Labor Government has highlighted as one of its foundation policies.”