Australia, Transport News

TWU slams idea to halve fuel tax credits

The TWU hasn’t minced words for the Grattan Institute in response to its proposal to halve fuel tax credits

The Transport Workers’ Union (TWU) has responded to a call to halve the fuel tax credit scheme, saying it would see deaths and insolvencies surge.

The Grattan Institute recently released a proposal calling for the fuel tax credit to be halved for truckies.

The TWU says this would send operators and owner drivers to the wall and cause more truck crash deaths on Australian roads.

“The fuel tax credit scheme provides relief to operators and drivers on razor-thin margins, while wealthy retailers, manufacturers and oil companies at the top of supply chains squeeze transport contracts to bolster their bottom line,” TWU national secretary Michael Kaine says.

“The prospect of tampering with – let alone halving – a fuel cost lifeline for our essential trucking industry in the current climate is as dangerous as it is ludicrous. This move would unfairly target operators and drivers battling razor-thin margins, under pressure to cut corners in safety to stay afloat. It would decimate operators and supply lines with deadly consequences in what is already Australia’s most lethal industry.”

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The TWU says users already factor in credits into their pricing they pass onto transport companies, but the removal of credits last year didn’t see increased costs absorbed at the top of the supply chain.

“We need long-term, practical and sustainable reform which recognises commercial reality, not the blinkered theoretical economic view which frankly is a fantasy,” Kaine says.

“The solution to this is already in the works, with the federal government committing to set fair, safe and sustainable standards in transport, which will be introduced to parliament later this year.

“The Grattan Institute would find it is better placed to join the conversation here, after first listening to and understanding the industry.”

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