The ATA has released a plan to save Australia's 60,000 trucking businesses from the crippling fuel prices caused by the Iran war.
ATA Chair Mark Parry released the plan after a meeting of the ATA's member council today.
The terminal gate price of diesel has increased more than 105 cents per litre since the start of the war. Diesel is one of the largest costs faced by trucking businesses. Owner drivers and small trucking businesses are facing potential ruin within weeks.
"The ATA is calling on the Australian and state governments to activate the Disaster Recovery Funding Arrangements immediately to help small trucking businesses. The DRFA typically offers cash grants and concessional loans to businesses with fewer than 20 employees," Mr Parry said.
"The fuel crisis is a DRFA trigger because it is due to terrorism against commercial shipping in the gulf.
"The DRFA is a mechanism that can be used to help small businesses quickly," he said.
Mr Parry said the Government should temporarily reduce the industry's road user charge to zero.
Businesses that operate heavy vehicles on the road system receive fuel tax credits for each litre of fuel they use. These fuel tax credits are adjusted down by a notional road user charge, currently 32.4 cents per litre. The charge aims to recover the cost of the industry's use of the roads.
"The Government should temporarily reduce the charge and review the reduction on a month-to-month basis," Mr Parry said.
"This would cost the Government $248 million per month, and it would flow through to trucking businesses as larger BAS refunds or offsets to their BAS payments, once their activity statements are due and processed," he said.
Mr Parry said that trucking businesses needed help to recover the cost of fuel from their customers.
"Trucking businesses need immediate help to get through our cashflow crisis, but we also need to address the underlying problem: many trucking businesses cannot pass their fuel costs on to their customers," he said.
"The Government has empowered the Fair Work Commission to issue contractual chain orders that cover the whole of the road transport contract chain, including industry customers.
"The commission is considering a TWU application for an order that would require rate reviews, but the order could not come into force until late 2026 at the earliest, even if it was expedited.
"We propose that the Government immediately amend the Fair Work Act to empower the FWC to make urgent fuel price contractual chain orders.
"Only the minister would be able to apply for such an order, and it would be subject to expedited consultation and hearing requirements, including mandatory consultation with the Road Transport Advisory Group.
"A fuel price order would only be able to deal with fuel levies, rate reviews involving fuel or charges involving fuel," he said.
Mr Parry said the TWU and the road transport employers' association, ARTIO, had applied to the Fair Work Commission for a formal conference with major industry customers to discuss the need for fuel levies.
"The ATA has been invited to participate in the conference and is attending the directions hearing this afternoon," he said.
Mr Parry said the National Heavy Vehicle Regulator (NHVR) and state governments should urgently allow longer, high productivity trucks on key freight routes.
"A 36.5 metre long A-double with two trailers can transport 1,000 tonnes of payload in 21 trips compared to 42 trips for a standard semi-trailer, while using only 72 per cent of the fuel," he said.
"Allowing more high productivity vehicles on major routes like the Hume and Pacific highways would save fuel and reduce costs for trucking businesses and their customers," he said.
The Western Australian Government has already announced that it will allow 27.5 and 36.5 metre road trains to carry an extra 10 tonnes of diesel, petrol and fertiliser to priority regions in the state.
A summary of the ATA plan is below.
THE ATA'S PLAN TO SUPPORT TRUCKING BUSINESSES
- The Disaster Recovery Funding Arrangements (DRFA) should be activated immediately to help small trucking businesses
- The Australian Government should temporarily remove the road user charge and review the removal on a month to month basis.
- The Fair Work Act should be amended to empower the FWC to issue urgent fuel price contractual chain orders
- The NHVR and state governments should issue urgent notices to allow the increased use of high productivity freight vehicles on major freight routes
- State-level owner-driver cost orders and price guidance should be updated to reflect current fuel prices.
The ATA will-
- Provide members with communications material about how small trucking businesses can move from quarterly to monthly activity statements
- Provide members with communications material for small trucking businesses to use to explain the need for increased fuel levies / freight rate increases to their customers
- At the request of the TWU, participate in the directions hearing for the FWC conference proposed by the TWU and ARTIO.
