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Federal government restores FTC with a twist

The federal government has finally made a call on the FTC while also announcing changes to other heavy vehicle user fees

The federal government has finally made an announcement on the fuel tax credit (FTC) scheme as it released plans to finally restore the FTC payment for heavy vehicle users.

Yesterday, federal transport minister Catherine King announced she will table the legislation allowing for the restoration of an increased FTC to federal parliament after consulting with infrastructure and transport ministers.

The new FTC rate will jump up to 18.8 cents per litre when it is restored on September 29.

But there’s a twist, as King also released plans to increase the heavy vehicle road user charge by 0.8 cents per litre from midnight September 28.

King says the increased road user charge will be counteracted by the FTC restoration and increase, as the transport minister says the FTC return will help offset the impact for heavy vehicle users. 

RELATED ARTICLE: NatRoad warns operators to brace for fuel price rise

The federal government says the road user charge intends to recover the greater cost of maintenance and repair as a result of heavy vehicles using the nation’s roads.

State and territory governments have also mirrored the decision to raise heavy vehicle registration fees.

The annual change to the heavy vehicle road user charge follows public consultation on the proposed increase which was undertaken by the National Transport Commission.

King says federal, state and territory ministers were mindful that an increase needed to be manageable for the industry.

The National Transport Commission will be consulting in September and October on heavy vehicle charge setting for 2023-24 onwards.

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