Why fuel levies and surcharges must continue for foreseeable future


This week yet another hot topic for the industry is the announcement of the Consumer Price Index (CPI).

As a follow on from the fuel excise changes the implications of how these increases impact on your business are important as to how you might communicate these impacts to your clients.

It has been very encouraging to hear that plenty of members have been seeking immediate advice from their accountants to understand cash flow variations and the implications for your fuel levies/surcharges following the recent change to fuel excise and the 6-month removal of fuel tax credits.

When the federal government took the decision to reduce the fuel excise we provided a view that clearly articulated the relationship between the excise and the road user charge to indicate the modest benefit to the road freight industry compared to the general motorist.

We are continuing to strongly advocate on your behalf for at least a 50 per cent reduction in the road user charge. If it is fair for a 50 per cent reduction to the excise for the general motorist then the same should apply to road freight.

On Wednesday the consumer price index numbers were released and to assist we have provided a graph below.

During the March quarter the Brisbane transport index rose by 4.2 per cent, with the automotive fuel index rising by 11.9 per cent.

The consumer price index for the Brisbane transport index over the 12 months to the March quarter 2022 has risen by 14.1 per cent (13.7 per cent for the average of the 8 capital cities).

The Brisbane automotive fuel index has risen by 36.7 per cent over the last 12 months (35.1 per cent for the 8 capital cities average) and compares to the overall CPI all group index yearly change of 6 per cent (5.1 per cent for the 8 capital cities).

We have prepared this graph below to assist in discussions with your clients on how continuing inflation is impacting your business and in particular, the absolute necessity for fuel levies/surcharges continuing to apply for the foreseeable future.

Gary Mahon is the CEO of the Queensland Trucking Association.

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