Road User Charge Reduction

The price of fuel to trucking operators in Australia will be reduced in July following the announcement of a reduction in the Road User Charge. Darren Chester, Federal Minister for Infrastructure and Transport, announced a drop in the fuel tax rate from 26.14 cents/litre to 25.9, as of July 1 2016. 

 

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The Australian Trucking Association has welcomed the move, which had been highlighted in the association’s 2016 pre-budget submission. The ATA estimates the change will save a typical owner-driver about $200 in 2016-17, and a typical small fleet operator about $1,100.

 

“The trucking industry pays for our use of the road system through heavy vehicle registration fees and a road user charge on fuel,” said Chris Melham, ATA CEO. “However, the industry has been overcharged since 2007, because the system used to calculate the charges underestimates the number of trucks on our roads.

 

“The Australian, state and territory governments last year agreed to a two-year freeze in their revenue from heavy vehicle charges in response to the problem. Reducing the road user charge from the current 26.14 cents per litre to 25.9 cents per litre will ensure that the Government’s predicted revenue from the road user charge remains constant.

 

“The decision builds on, and goes further than, the Government’s previous decisions to freeze the road user charge rate in 2014 and 2015. It’s great news for trucking operators in advance of next week’s Federal Budget and follows the repeal of the Road Safety Remuneration Act and tribunal last week.”

 

The road user charge is imposed as a reduction in the fuel tax credits trucking businesses can claim through the ATO’s BAS process. As a result of the decision, the fuel tax credit rate for eligible heavy vehicles will increase from 13.36 cents per litre to 13.6 cents per litre from July 1.

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Author: Tim Giles

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