The ATA has welcomed the Government's announcement that trucking businesses will be able to apply for zero interest loans to help deal with their skyrocketing fuel costs.
The loans will be available from this morning under the Government's $1 billion Economic Resilience Program.
Manufacturing or logistics businesses with an annual turnover of up to $100 million will be able to apply directly to their participating bank for a loan capped at $5 million.
Businesses with an annual turnover in excess of $100 million or that are seeking a loan of more than $5 million will need to apply directly to the National Reconstruction Fund Corporation.
ATA CEO Mathew Munro said the zero interest loans would help trucking businesses finance the extra cost of the fuel they have purchased since the start of the Iran war.
"Trucking businesses have run up enormous additional costs over the last 50 days. Those bills are falling due, and many businesses have no immediate way of repaying them," Mathew said.
"The zero interest loan scheme will enable businesses to pay off those extra costs over two years.
"The scheme will be a lifeline for businesses that have done everything right, but have not been able to renegotiate their contracts or adjust their fuel levies fast enough to deal with the rising cost of fuel. Even businesses with fuel levies are experiencing significant cash flow problems.
"The ATA has argued before the Fair Work Commission that it should issue an effective and workable emergency order to help businesses past on their fuel costs.
"But the order would apply to their future fuel costs, not the costs they have already incurred. These loans will bridge the gap."
Mr Munro said the announcement followed discussions between the ATA and the National Reconstruction Fund Corporation last week.
"To be eligible for a loan, a business must fall within the list of eligible Australian and New Zealand Standard Industrial Classification (ANZSIC) codes," Mr Munro said.
"I can confirm this morning that road freight transport businesses (ANZSIC class 4610) are eligible."
Each bank administered loan will be subject to the issuing bank's standard fee structure and default practices.
