Australia’s trucking industry is warning that a proposed increase to the heavy vehicle road user charge could have consequences far beyond the freight sector, with consumers likely to feel the impact at the supermarket checkout.
NatRoad has lodged a submission to the National Transport Commission opposing a proposed six per cent increase to the heavy vehicle road user charge for 2026–27. If approved, the charge paid on diesel would rise from 32.4 cents to 34.3 cents per litre, around double the current rate of inflation.
NatRoad Chief Executive Officer Warren Clark says the cost pressure would not stop with transport operators.
“Every loaf of bread, every carton of milk and every box of fruit you see in a supermarket has arrived on a truck,” Clark says. “When governments increase the cost of running those trucks, the price pressure doesn’t stop at the depot gate. It flows straight through to the checkout.”
The proposed increase comes as many freight businesses are already absorbing higher insurance premiums, rising workers’ compensation costs and ongoing increases in maintenance and parts.
Clark estimates that for a truck consuming around 100,000 litres of fuel each year, the above-inflation increase would add roughly $2,000 in additional annual costs.
“These are not optional costs. They’re unavoidable, and they’re hitting businesses that are already running on margins of less than three per cent,” he says.
“For a lot of owner-operators, this could easily be the straw that breaks the camel’s back. They’re not sitting on cash reserves. They’re working week to week, truck to truck, to keep the doors open.”
NatRoad argues that when smaller operators exit the industry, the impact is felt most sharply in regional and remote areas, where competition is already limited.
“When trucking businesses go under, competition disappears, particularly in regional areas,” Clark says. “That means fewer operators, longer delivery times and higher prices. Regional Australians feel it first, but everyone feels it eventually.”
The organisation says frustration among operators is heightened by continued bottlenecks, safety risks and poor road conditions on key freight routes, despite ongoing charges collected from the industry.
“No one is arguing against paying a fair share for roads, but before governments ask for more money, they need to show that the money already collected is being spent efficiently and delivering real improvements,” Clark says.
NatRoad is calling for the proposed increase to be capped at inflation for 2026–27, with broader reform considered through the upcoming Forward-Looking Cost Base process.
“Fairness also means recognising capacity to pay,” Clark says. “You don’t fix a budget gap by pushing small businesses over the edge and hoping consumers won’t notice.”