Road Freight NSW is calling for a nationally consistent road-user charging framework, warning that a patchwork of State-based systems would add cost, complexity and uncertainty for freight operators.
The peak industry body has outlined its position to the NSW Legislative Council's Public Accountability and Works Committee review of the Electric Vehicles (Revenue Arrangements) Act 2021, arguing that while governments must plan for the long-term decline in fuel excise revenue, any future road-user charging model must be practical, nationally consistent and designed with the freight task in mind.
Road Freight NSW Chief Executive Officer Simon O'Hara said RFNSW supported sustainable road funding reform in principle, but not a fragmented model that forces operators to navigate different rules across different jurisdictions.
"Road freight does not stop at the border and neither should road funding reform," Mr O'Hara said.
"If governments are serious about reform, they need to start with a nationally consistent framework rather than expecting operators to deal with a different set of charges, reporting rules and compliance obligations every time they cross into another state.
"Freight operators move food, fuel, construction materials, containers, refrigerated goods, waste, retail freight and essential supplies across metropolitan, regional and interstate supply chains every day. A state-by-state model simply does not reflect how the freight industry operates."
While heavy vehicles are excluded from the current NSW Act, RFNSW said the review remained highly relevant to the freight industry because it could shape the future road-user charging models.
"Heavy vehicles may be excluded from the current Act, but freight cannot be excluded from the road funding conversation," Mr O'Hara said.
"This review should not allow a passenger vehicle charging model to become the default template for freight. Heavy vehicles operate under completely different commercial, infrastructure, safety, access and compliance arrangements and require a separate national approach."
RFNSW said future framework should also ensure revenue is transparently allocated back to States and Territories for the infrastructure priorities that road users rely on.
"NSW should be able to invest in NSW infrastructure, but the charging system itself needs to be nationally consistent," Mr O'Hara said.
"We don't want operators facing different charges or rules depending on where they work."
RFNSW warned that any future extension of road-user charging to electric heavy vehicles must not occur before a national framework, supporting infrastructure and clear industry safeguards are in place.
"Governments should support the transition before charging it," Mr O'Hara said.
RFNSW said any future model must also avoid additional charges for heavy vehicles that cannot be recovered through the supply chain.
"Freight operators are prepared to pay their fair share, but they will not support a system that simply adds another cost without delivering better infrastructure and a better freight network in return," Mr O'Hara said.
"Any reform must take account of existing heavy vehicle charges, registration, tolls, electricity network costs, depot infrastructure costs and the ability of operators to pass unavoidable government charges through the supply chain."
RFNSW said NSW should use the review to help lead a national conversation on road funding reform, rather than proceeding alone with a fragmented State-based approach.
"The goal should be a fair national system that funds better roads, stronger bridges, safer rest areas, more productive freight corridors and the infrastructure needed for future low and zero-emission freight vehicles."
About us:
About Road Freight NSW Originating in 1893, Road Freight NSW (RFNSW) is the peak industry organisation for the road and freight industry in NSW and engages in advocacy, government and media relations on behalf of members.
