Trucking businesses win from tax decision

Every trucking business will benefit from the Australian Government’s decision to cancel a proposed increase in the tax on truck fuel, Australian Trucking Association Chair Geoff Crouch said today (May 1).

Deputy Prime Minister Michael McCormack and Assistant Minister for Road Safety and Freight Transport Scott Buchholz announced the decision early this morning.

The Government was looking at increasing the tax on truck fuel, known as the road user charge, by 2.5 per cent from July 1 this year and another 2.5 per cent from July 1, 2021.

Mr Crouch said the decision recognised that 2020 is not the time to increase taxes on the businesses delivering Australia’s essential food, medicine and other goods.

“As a result of the pandemic, Australia is likely to experience the biggest contraction in national output and income since the Great Depression,” Mr Crouch said.

“Australia’s 50,000 trucking businesses simply could not afford to pay more in taxes and charges.

“The Australian Government has listened to what our members are saying and have acted. We applaud the Deputy Prime Minister’s leadership on this issue.”

Mr Crouch said the ATA and its network of member associations had taken a united and effective approach to lobbying on the issue.

“In November 2019, ministers rejected officials’ advice that truck taxes and charges should increase 11.4 per cent, after the ATA and member association representatives briefed them on the cost and demand pressures faced by trucking businesses.

“Ministers then identified a preference for two increases of 2.5 per cent, but this was before the double hit of the bushfires and the epidemic.

“As a result of today’s decision, the road user charge will remain at its current level, 25.8 cents per litre,” he concluded.

You can read the ATA submission on the proposed charge increase here.