Fuel excise freeze welcomed but industry vulnerable to other hikes, Robins says
Australia’s livestock transport sector has greeted news that the fuel excise will be frozen next financial year, but has taken a shot at state and territory governments for jacking up vehicle registration fees.
The Federal Government announced yesterday the excise will remain at 26.14 cents per litre in the 2015-2016 financial year, despite the National Transport Commission (NTC) recommending a 0.6 per cent increase to heavy vehicle charges.
Australian Livestock and Rural Transporters Association (ALRTA) president Grant Robins says it is great news for transport operators and regional economies and will save the industry $11 million next financial year.
“While state and territory governments have gone ahead and increased heavy vehicle registration charges in line with the NTC’s recommendation, the Federal Government has done the right thing by industry and frozen the road user charge at the current level for another year,” Robins says.
Along with the Australian Trucking Association (ATA), the ALRTA sought a freeze to truck charges on the basis the system used to calculate them is flawed.
Australia’s transport ministers agreed last year the system had led to overcharging and that a new methodology would be introduced from 2016-2017.
“It is a sad fact that Australian governments have chosen to continue overcharging industry for the past two years – by more than $200 million during 2013-14 and $117 million in 2014-15,” Robins says.
Federal infrastructure minister Warren Truss says the excise freeze will reduce business costs for trucking operators.
He says the Federal Government decided to freeze the excise after consulting extensively with the trucking industry.