The VTA says it is thankful the government has taken the time to listen to the concerns of the industry but warns that general transport costs are set to continue rising.
The Victorian Transport Association (VTA) has welcomed the reinstatement of the fuel excise tax credit by federal transport and infrastructure minister Catherine King following months of advocacy by the transport industry for its reinstatement to offset higher diesel costs.
The credit will increase by 1 cent to 18.8 cents per litre from 29 September 2022, with the higher amount intended to offset an increase to the heavy vehicle road user charge of 0.8 cents per litre, which takes effect at the same time.
The VTA says it gratefully acknowledges and sincerely thanks the minister for listening to the legitimate concerns of industry, which is reflected in the higher fuel excise tax credit afforded to road transport operators.
In its deliberations with state and federal governments, the VTA says it has consistently advocated for any increase to the road user charge to be kept to a minimum, in consideration of the significant increase in diesel costs due to inflationary and supply chain pressures, as well as ongoing conflict in Eastern Europe.
With the temporary reduction in the fuel excise set to end later this month, the VTA says it is important that operators continue to resist absorbing higher business costs so as not to put any unnecessary pressure on their ability to trade.
The VTA says consumers are growing accustomed to the impacts of inflation in our economy so it will come as little surprise that increases in fuel, registration and charges must be factored into transport costs.