Australia’s road freight sector is heading into the 2026–27 Federal Budget under intense financial and regulatory pressure, with margins below three per cent and insolvencies rising across the industry.
In its pre-Budget submission to the Treasury, the National Road Transport Association (NatRoad) argues that the Budget must prioritise productivity-enhancing reform and targeted infrastructure investment, rather than adding new costs to operators already absorbing sharp increases in insurance, labour, fuel, parts, and compliance.
NatRoad warns that, without decisive action, inefficiencies in access approvals, infrastructure investment gaps, and poorly sequenced decarbonisation policies risk undermining freight reliability and pushing more operators out of the market.
Why automated access reform matters for freight
At the centre of NatRoad’s submission is a call to fund and accelerate the National Automated Access Scheme (NAAS), which would replace most heavy vehicle permits with automated, nationally consistent access decisions.
Under the current system, restricted access vehicles face fragmented, manual approvals that vary by jurisdiction and road manager. NatRoad estimates that these access and permit constraints are costing the economy between $4 and $5 billion a year and creating unnecessary compliance burdens for operators.
A nationally implemented NAAS, with governments already piloting automated access in states such as Queensland, New South Wales and Tasmania, could eliminate up to 90 per cent of permits. NatRoad estimates this would remove around $54 million in annual administrative fees and deliver productivity gains of up to $700 million by reducing back-office time and vehicle downtime.
NatRoad is seeking $30 million over four years to complete national digital road mapping, integrate state and local government data, and automate access for PBS and other higher productivity vehicles.
PBS approvals remain a major bottleneck
Performance-Based Standards (PBS) vehicles have been proven to deliver safer, more productive, and lower-emissions freight outcomes, yet NatRoad argues that the current PBS approval process remains slow, complex, and inconsistent.
While PBS uptake is growing, with more than 4,000 approvals issued in 2023–24, each vehicle still faces lengthy design, certification and access processes that can stretch beyond six months. NatRoad estimates delays cost operators tens of millions of dollars each year, with idle trucks costing up to $1,200 per day.
To address this, NatRoad is calling for a nationally consistent PBS Approval Program, backed by $20 million over four years, to digitise assessments, reduce duplication between jurisdictions and integrate PBS approvals with automated access systems.
Decarbonisation must reflect commercial reality
NatRoad strongly supports emissions reduction but warns that the heavy vehicle sector faces unique challenges due to long distances, heavy loads, and continued reliance on diesel.
Drawing on findings from the International Road Union’s Green Compact Survey, NatRoad highlights that more than 70 per cent of Australian operators are worried about decarbonisation, with cost recovery and infrastructure readiness the biggest barriers.
NatRoad is calling for an additional $2.4 billion to complete the Clean Transport Fund, with support targeted at practical, proven technologies such as low-rolling-resistance tyres, Euro VI engine retrofits, eco-driver training, and low-carbon liquid fuels. The association stresses that electrification will not suit all freight tasks and that a technology-agnostic approach is essential.
Crucially, NatRoad is urging the Government not to make pre-emptive changes to the Fuel Tax Credit Scheme until a viable Forward-Looking Cost Base and equitable Road User Charge framework is in place.
Infrastructure investment where it delivers the most value
NatRoad’s submission also calls for a dedicated Freight Productivity and Safety Infrastructure Package of $300 million per year over four years, focused on high-risk freight corridors and first- and last-mile routes controlled by local governments.
With councils managing around 77 per cent of Australia’s road network, NatRoad argues targeted funding is needed to upgrade bridges, pavements and safety features, while also improving asset data and access decision-making.
The association is also calling for continued funding of the Black Spot Program and further expansion of the Heavy Vehicle Rest Area Program, citing strong safety and productivity returns from corridor-based investment.
A Budget test for freight reform
NatRoad’s message to Treasury is clear. In a fiscally constrained environment, the most effective reforms are those that cut red tape, unlock access to safer, more productive vehicles, and support decarbonisation without undermining business viability.
Without these changes, the association warns Australia risks higher freight costs, weaker supply chains and reduced resilience at a time when demand for freight continues to grow.