Australia’s 60,000 trucking businesses face financial collapse within weeks as diesel prices soar over 105 cents per litre amid the war with Iran. That is according to the Australian Trucking Association, which released an emergency rescue plan on March 18 following a meeting of its member council.
ATA chair Mark Parry said the crisis demanded an immediate government response on multiple fronts — beginning with the activation of the Disaster Recovery Funding Arrangements, a mechanism that provides cash grants and concessional loans to businesses with fewer than 20 employees.“The fuel crisis is a DRFA trigger because it is due to terrorism against commercial shipping in the Gulf,” Parry said.
The ATA is also pressing the federal government to temporarily suspend the industry’s road user charge. Businesses operating heavy vehicles on the road network receive fuel tax credits for each litre of fuel consumed, adjusted down by a notional charge currently set at 32.4 cents per litre. Removing it would cost the government $248 million per month, with the savings flowing through to trucking businesses as larger BAS refunds or offsets against BAS payments.
“The government must temporarily reduce the charge without delay and review its status monthly to ensure timely support for the industry.”
ATA chair Mark Parry on the changes that the govenrment must make in order to save the industry.
Beyond immediate cash relief, the ATA wants the Fair Work Act amended to give the Fair Work Commission power to issue urgent fuel price contractual chain orders. The existing TWU application cannot take effect until late 2026, even if expedited — and for owner-drivers already burning through reserves, that is too late. Only the minister could apply for such an order, with mandatory consultation through the Road Transport Advisory Group required before it could be made.
The ATA is also pushing the National Heavy Vehicle Regulator and state governments to allow longer, high-productivity vehicles on key freight routes. A 36.5-metre A-double with two trailers can move 1,000 tonnes of payload in 21 trips compared with 42 trips for a standard semi-trailer, whilst burning just 72 per cent of the fuel. Western Australia has already moved — announcing 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.
The TWU and the road transport employers’ body ARTIO have also applied to the Fair Work Commission for a formal conference with major industry customers to discuss fuel levies, with the ATA attending the directions hearing on March 18. At $248 million per month, the temporary removal of the 32.4-cent road user charge represents the fastest cash injection available to the sector — and the ATA says the government should be moving on it now.
