Australia, Transport News

ATA celebrates rejection of FTC plan

The ATA says it worked hard with the industry to convince the federal government not to adopt the Grattan Institute’s proposal

In its weekly newsletter, the Australian Trucking Association (ATA) has celebrated the federal government’s decision to not adopt the Grattan Institute’s fuel tax credit (FTC) proposal.

Recently the Grattan Institute called to reduce FTC payments for the transport industry, with the Transport Workers’ Union (TWU) leaping to slam the idea.

The ATA also spoke about the plan, saying it would devastate the trucking industry if truck drivers and operators were forced to pay more tax.

“If adopted, the report would increase the effective fuel tax paid by trucking businesses by 20.5 cents per litre, from 27.2 cents per litre to 47.7,” the ATA chair David Smith says.

“There is no way that any transport business could survive this. Diesel is our biggest cost. We’re already fighting ridiculous fuel prices; this would be straw that breaks the camel’s back.

“Ultimately, our customers would have to pay the extra cost. But on the way through, many trucking businesses would fold and costs in rural and remote areas would go up even more.”

RELATED ARTICLE: TWU slams idea to halve fuel tax credits

As part of a list of facts about the FTC, the ATA says its research shows that only 34 per cent of trucking businesses can pass on increased fuel costs, meaning many would have to lose money or close.

The association says the plan would impose higher costs on rural and remote communities where the cost of transport is higher.

After this campaign, the ATA says it worked with state-based member associations to argue against the federal government adopting the proposals.

Within 48 hours, Prime Minister Anthony Albanese announced the government wouldn’t adopt the proposal.

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