Australia’s peak trucking bodies have raised serious concerns over a proposed fourth consecutive 6% increase in heavy vehicle charges, warning the move could push more transport businesses out of the industry.
Both the Australian Trucking Association (ATA) and the National Road Transport Association (NatRoad) have made submissions to the National Transport Commission (NTC), calling for the increase to be scaled back and capped at inflation for the 2026–27 financial year.
An Industry Under Pressure
The ATA says the trucking industry is already operating under extreme financial strain, driven by:
- Rising inflation and interest rates
- Ongoing driver shortages
- Low freight rates
- The growth of sham contracting
- Escalating operating costs
According to the ATA, insolvencies across the road transport sector reached record levels in 2025, with one in every 12 transport businesses shutting down. Industry leaders argue that three consecutive years of 6% charge increases have already contributed to this outcome.
The ATA has urged governments to limit any increase to no more than 4%, arguing this would provide much-needed relief while restoring confidence ahead of planned reforms to how heavy vehicle charges are calculated.
Concerns Over Fuel Charges
NatRoad has also warned that the proposed increase could have direct consequences for Australian households, not just trucking businesses.
Under the proposal, the diesel charge paid by trucks would rise from 32.4 cents to 34.3 cents per litre, representing an increase well above inflation.
NatRoad estimates that for a truck using around 100,000 litres of fuel per year, the change would add approximately $2,000 annually to operating costs. This would come on top of rising expenses for insurance, WorkCover, maintenance, and parts.
With many owner-drivers operating on margins of less than 3%, industry bodies say even small increases can have a disproportionate impact.
Flow-On Effects for Communities
Industry groups have also highlighted the broader consequences of rising transport costs. When trucking businesses close, competition reduces — particularly in regional areas — leading to longer delivery times and higher prices for everyday goods.
Freight costs do not stop at the depot gate. They flow through supply chains and ultimately affect supermarket shelves, building materials, and essential services nationwide.
Calls for Fairness and Reform
While both the ATA and NatRoad acknowledge the need for trucking to contribute fairly to road funding, they argue that any increases must reflect operators’ capacity to pay and demonstrate clear value in terms of road quality, safety, and efficiency.
Both organisations are calling for the proposed increase to be capped at inflation for 2026–27, with broader reform to be considered through the upcoming Forward Looking Cost Base (FLCB) process.
The FLCB model would calculate heavy vehicle charges based on the future cost of building, maintaining, and operating roads, rather than relying on historical spending.
What Happens Next
The NTC has confirmed it will analyse stakeholder feedback following the consultation period, which closed on December 12, before making recommendations to Australia’s transport ministers.
While ministers have indicated support for a 6% increase under the current Pay As You Go model for 2026–27, they have also agreed to consult on the FLCB model as an alternative, with consultation expected to begin in early 2026.
Why This Matters
For drivers and operators, heavy vehicle charges directly affect the cost of doing business — and ultimately the sustainability of the industry.
At Logbook Checker, we believe that fair, transparent, and sustainable charging decisions are essential to keeping operators on the road, supply chains moving, and regional communities connected.
As these discussions continue, staying informed will be critical for anyone operating in the heavy vehicle sector.