Interest rate rise should halt truck price hikes, ATA says

By: Jason Whittaker


Today’s rise in the official interest rate shows the Australian Government should immediately reject the National Transport Commission’s (NTC) plan

Today’s rise in the official interest rate shows the Australian Government should immediately reject the National Transport Commission’s (NTC) plan to increase truck registration charges and the tax paid by trucking operators on diesel, according to the truck lobby.

The Chief Executive of the Australian Trucking Association (ATA), Stuart St Clair, says the plan will increase the cost of household basics for working families reeling from yet another increase in interest rates.

The NTC has recommended increasing the tax paid by trucking operators on diesel from 19.633 cents per litre to 21 cents per litre — an increase of 1.367 cents per litre.

"The commission has also proposed increasing registration charges for more than 60 percent of the heavy vehicles in Australia.

"Trucks carry 75 percent of Australia’s domestic freight, so the increased costs would raise prices for everyone, from cornflakes to building materials, from medicines to school shoes," St Clair says.

"Tonight, many hard working Australian families will have to sit down at the kitchen table to work out how they can cut their costs to keep up their mortgage payments. The NTC’s plan would make it even harder for them to balance their budget.

"The Government has a five point plan to fight inflation and keep interest rates down, but it will be a while before it takes effect. By rejecting the NTC’s plan, the Government could take immediate action to keep some of the pressure off working families."

The Australian, state and territory governments will decide whether to go ahead with the NTC’s plan in the next few months. Under the plan, the tax on diesel would increase truck registration charges would be phased in over three years.

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