Rego and fuel charges to rise

Governments agree to raise registration and fuel charges by 4.2 percent from as early as July 1

Rego and fuel charges to rise
Rego and fuel charges to rise

By Brad Gardner | April 30, 2010

Trucking operators will pay higher registration and fuel charges from as early as July 1 this year after the Australian Transport Council decided to increase fees by 4.2 percent

The ATC, which brings together the nation’s transport ministers, voted in favour of a proposal from the National Transport Commission (NTC) to raise the fuel excise from 21. 7 cents to 22.6 cents a litre, cutting almost one cent off the diesel rebate.

B-double registration will rise to $15,340, while a semi-trailer will cost $5612 – a more than $300 increase.

It is unclear if charges in all jurisdictions will increase at the beginning of July as proposed by the NTC.

NSW last year delayed increases for six months and is again looking at whether to defer them and the ATC says timing will depend on "the regulatory timetables in the separate jurisdictions".

The ATC also ordered the NTC to provide cost adjustment proposals by the end of January after the industry complained there was not enough time given to allow operators to factor the costs into their budgets.

"The National Transport Commission will provide the result of future annual adjustment calculations to ATC members no later than 31 January each year," the ATC communiqué reads.

The NTC this year made its proposal in late March and conducted a month-long consultation before submitting a final recommendation to the ATC today.

According to the NTC, the 4.2 percent rise is necessary due to a 10.7 percent increase in road expenditure by governments.

It says the industry has benefited from greater access, less congestion and reduced wear and tear on vehicles.

The Australian Trucking Association disputed the NTC, claiming it would overcharge operators by $776 million because its calculations were based on outdated figures.

The Victorian Transport Association earlier this week wrote to the state’s Roads and Ports Minister Tim Pallas urging him not to adopt the NTC’s proposal.

"It is vital for all levels of Government to stop using the transport industry as a revenue source without proper justification. If these increases go ahead, it could send some companies broke," VTA Chief Executive Philip Lovel says.

"These sort of increases put a real financial burden on transport operators who are already under the pump to deliver goods at cheaper than ever prices."

Registration fees were due to rise without the 4.2 percent due to the final year of a three-year plan to recoup money from the industry for past road expenditure.

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