Road user charging is on the tip of the tongue in the transport world this week.
On Tuesday, transport association NatRoad issued a statement urging the Federal Government to continue the current suspension of road user charges beyond the July 1 deadline, until Christmas 2026, to support road transport operators.
It says the current suspension translates to a saving of up to 32.4 cents per litre on the price of diesel, which remains high as a result of the war in Iran and the closure of the Strait of Hormuz.
It argues many road transport businesses continue to struggle with cash flow challenges presented by the exceptional circumstances that have driven the price of diesel well beyond it’s normal fluctuations.
“The threat to global fuel supply and price stability will take months to resolve,” says NatRoad CEO Warren Clark.
“We will already have a jump when fuel excise returns in a few weeks.
“The worst thing the Government could do right now amid so much uncertainty is add another 32.4 cents per litre to trucking costs by reinstating the Road User Charge on July 1.”
The program of charging itself has also been brought into question with Road Freight NSW calling for a nationally consistent road-user charging framework, particularly when it comes to next generation trucks.
In a report to the NSW Legislative Council’s Public Accountability and Works Committee review of the Electric Vehicles (Revenue Arrangements) Act 2021, RFNSW argues that while governments must plan for the long-term decline in fuel excise revenue, any future road-user charging model must be practical, nationally consistent and designed with the freight task in mind.
Road Freight NSW CEO Simon O’Hara says RFNSW supports sustainable road funding reform in principle, but not a fragmented model that forces operators to navigate different rules across different jurisdictions.
“Road freight does not stop at the border and neither should road funding reform,” O’Hara says.
“Freight operators move food, fuel, construction materials, containers, refrigerated goods, waste, retail freight and essential supplies across metropolitan, regional and interstate supply chains every day. A state-by-state model simply does not reflect how the freight industry operates.”
While heavy vehicles are excluded from the current NSW Act, RFNSW says the review remains highly relevant to the freight industry because it could shape future road-user charging models.
“Heavy vehicles may be excluded from the current Act, but freight cannot be excluded from the road funding conversation,” O’Hara says.
“This review should not allow a passenger vehicle charging model to become the default template for freight.
“Heavy vehicles operate under completely different commercial, infrastructure, safety, access and compliance arrangements and require a separate national approach.”
RFNSW warned any future extension of road-user charging to electric heavy vehicles must not occur before a national framework, supporting infrastructure and clear industry safeguards is in place.
It also says any future model must also avoid additional charges for heavy vehicles that cannot be recovered through the supply chain.
“Freight operators are prepared to pay their fair share, but they will not support a system that simply adds another cost without delivering better infrastructure and a better freight network in return,” O’Hara says.
“The goal should be a fair national system that funds better roads, stronger bridges, safer rest areas, more productive freight corridors and the infrastructure needed for future low and zero-emission freight vehicles.”