NatRoad has both supported and condemned the federal government’s multi-faceted fuel rate scheme
The National Road Transport Association (NatRoad) says the federal government’s move to restore the fuel tax credit scheme (FTC) while increasing the Road User Charge is like giving with one hand and taking with the other.
NatRoad says confirmation that FTCs are being restored on September 29 cannot come too soon.
But NatRoad says the long anticipated rise in the Road User Charge is not so welcome and will add to the financial and regulatory burden that is already contributing to the exit of drivers from the road transport industry.
Federal Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, formally announced restoration of the FTC at 18.8 cents per litre earlier this week.
King simultaneously announced the new Road User Charge will be 27.2 cents per litre and the fuel excise 46 cents a litre.
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“This increase in the road user charge is from 26.4 cents per litre and is consistent with the NTC’s recommendations earlier this year,” says NatRoadCEO Warren Clark.
“While we acknowledge that the 3 per cent rise is less than half the inflation rate for 2021-22, it will still make life tough for truck operators.”
The previous federal government’s halving of fuel excise ends at midnight September 28 and NatRoad has warned the spike in diesel prices will be significant.
NatRoad has a forthcoming webinar on September 21, 2022 to explain the new arrangements to members and others.