The Australian Trucking Association (ATA) has rejected a fourth consecutive 6 per cent increase in heavy vehicle charges proposed for the next financial year.
Speaking in support of the ATA’s submission to the National Transport Commission’s (NTC) consultation on heavy vehicle charges, ATA CEO Mathew Munro has warned that the industry is at breaking point.
“Trucking operators are already facing extreme financial and operational pressures including inflation, high interest rates, severe driver shortages, low freight rates and the rapid rise of sham contracting,” Munro said.
“In 2025, insolvencies reached record levels, with one in every 12 road transport businesses closing their doors.
“Three years of 6 per cent charging increases has contributed to this dire situation. The trucking industry simply cannot absorb another steep charging increase.”
The ATA submission argues that governments should instead apply a more moderate increase, not exceeding 4 per cent.
The association said this is necessary to provide some financial relief to operators and to assist in rebuilding trust in fair and reasonable charging decisions as governments prepare to transition to an alternative method for calculating heavy vehicle charges – a forward looking cost base (FLCB).
The FLCB model sets truck charges based on the projected future cost of building, maintaining and operating the road network, rather than on what governments have spent in the past.
Beyond charges, the ATA has also called for a renewed commitment to supply-side reforms, continual staged improvements to the Heavy Vehicle National Law, and the protection of fuel tax credits.
“The message is clear: with road freight essential to every Australian household and business, governments must choose a fair and sustainable path forward.”
The National Road Transport Assocation (NatRoad) also warned that Australian families could pay more for groceries and everyday essentials if governments push ahead with a proposed increase to truck fuel charges which is already pushing freight businesses to the brink.
In its submission to the NTC, NatRoad said the proposed six per cent increase for 2026–27 – double the rate of inflation -would lift the diesel charge paid by trucks from 32.4 cents to 34.3 cents per litre.
NatRoad CEO Warren Clark said the impact of the proposal goes far beyond trucking companies and will be felt directly by households.
“Every loaf of bread, every carton of milk and every box of fruit you see in a supermarket has arrived on a truck,” Clark said.
“When governments increase the cost of running those trucks, the price pressure doesn’t stop at the depot gate. It flows straight through to the checkout.”
Clark said the proposed increase is particularly damaging because it comes at a time when freight businesses are already being squeezed from every direction.
He estimated that increasing the charge to twice that of inflation would cost the average truck using 100,000 litres of fuel an additional $2000 each year on top of rising costs for insurance, WorkCover, parts and maintenance.
“These are not optional costs. They’re unavoidable, and they’re hitting businesses that are already running on margins of less than three per cent,” he said.
“For a lot of owner-operators, this could easily be the straw that breaks the camel’s back. They’re not sitting on cash reserves. They’re working week to week, truck to truck, just to keep the doors open.
“When trucking businesses go under, competition disappears, particularly in regional areas. That means fewer operators, longer delivery times and higher prices. Regional Australians feel it first, but everyone feels it eventually.
Clark said frustration among owner operators is made worse by continued poor road conditions, bottlenecks and safety risks on key freight routes.
“No one is arguing against paying a fair share for roads, but before governments ask for more money, they need to show that the money already collected is being spent efficiently and delivering real improvements,” he said.
“Fairness also means recognising capacity to pay. You don’t fix a budget gap by pushing small businesses over the edge and hoping consumers won’t notice.”
NatRoad is calling for the increase to be capped at inflation for 2026–27, with broader reform considered through the upcoming FLCB process.
“That process is supposed to properly assess costs, priorities and value for money,” Clark said.
“Rushing through an above-inflation hike now is the wrong move at the wrong time.”
Following the consultation period that closed on December 12, the NTC said it will analyse stakeholder feedback and relevant data to inform recommendations for Australia’s transport ministers.
At this year’s August Infrastructure and Transport Ministers’ Meeting, ministers supported a preferred 6 per cent increase for heavy vehicle charges for 2026-27 under the current Pay As You Go charging model.
At the same meeting, the ministers agreed for the NTC to consult on a FLCB model as an alternative way to set heavy vehicle charges. The NTC said it will start consultation in early 2026.
Governments tax things highly because they want to get rid of it like smokes and alcohol. Do they want to get rid of the trucking industry?
Well they started on the drivers a long time ago