Although the VTU got its rate change, it says it needs the fuel tax credit returned
Victorian Tippers’ United (VTU) welcomes the new tip truck owner driver minimum rates change made by the Victorian government but says the removal of the fuel tax credit means there’s more work to do.
Last week the Victorian government announced that the diesel rates for owner drivers in Victoria is set to change on April 21.
This rate change means the minimum rate will now become:
- $96.78 for tandem GVM 22.5
- $137.34 for truck and tri-axle dog trailer GCM 42.5
- $149.97 for truck and quad axle dog trailer GCM 50
These interim changes come as a relief to the VTU, as the group threatened to strike on Victorian Parliament if the government didn’t work to reduce diesel rates due to the inflation of fuel prices.
“We’ve got good news as the state government agreed to revisit the cost model for fuel prices,” VTU spokesman Luke McCrone says.
“The bureaucratic process took longer than we would’ve liked, but within three weeks of starting to agitate the government we got the improvement, which will kick into gear when we get back from our Easter break.”
Under the new rate changes, the state government no longer requires the payment of different rates depending on the truck age, with the financial impact of the new minimum rates increasing to cover the inflated fuel prices.
McCrone says this change is welcome despite hirers having already come out and set different fuel levies to help struggling transport operators.
“We’ve seen over the last month when pushing for improvement that hirers have come out with fuel levies of their own which are based on the terminal gate price of fuel,” he says.
“As that price has fallen due to the cutting of the fuel excise, levies have fallen and there’s been no benefit to us as they’re now worth less.”
What hasn’t helped the industry is the removal of the fuel tax credit for heavy vehicle operators, which McCrone describes as a “knife in the back” from the Federal government.
Despite the Victorian government working to increase rates for operators, this removal of payment will hit many transport companies hard when they pay their next business activity statement (BAS) payments in June.
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“For government infrastructure work, the government pays minimum rates to help truck operators maintain their vehicles, pay drivers entitlements and pay for people to complete the work,” McCrone says.
“But outside of this government work, anything goes, and we’re in the process of getting this rate spread more widely through the industry.”
As well as spreading the new rates, the VTU is focusing on bringing back the fuel tax credit ahead of the upcoming Federal election so truck operators can recover vital costs ahead of their next BAS payments.
“We need the fuel tax credit back, and it’s not just us saying that,” McCrone says.
“I know concrete and quarry trucks that have cost models based off terminal gate prices which have all fallen recently, so they’ve seen reductions in what they’re making and it’s a problem for them.
“There’s a significant portion of owner driver companies who aren’t aware that these taxes will hurt them badly when it comes to their next BAS payment.”