Australia’s truck industry facing ‘imminent collapse’ due to 22c fuel tax credit
By Sourced Externally
June 1, 2022
An “ill-advised” decision left by the previous federal government has truck companies fearing “imminent collapse,” a South Australian survey has revealed.
According to a survey conducted by the South Australian Road Transport Association (SARTA), 57 per cent of businesses could be faced with bankruptcy due to the changes made by the Coalition to the diesel fuel tax credit.
Previously, freight companies would receive 17.8 cents back per litre, however this was cut to 4.3 cents per litre from March 30.
The move has been lashed by SARTA chief executive Steve Shearer. He says that if the diminished tax credit runs for the entire six months proposed (it is due to run out on September 28), the industry could face unfathomable consequences.
He told the Adelaide Advertiser that the trucking industry had essentially been forced to fund the consumer fuel excise cut, however it wasn’t sustainable.
“Truck operators claim the tax credit each quarter, ranging from $2000 to over $150,000, and no business can sustain the loss of such a significant portion of their funds,” he said.
The extra expense could also result in the “imminent collapse” of supply chains for food and products, Mr Shearer warned, however changes to the tax credit could help salvage struggling businesses.
“Ninety-two per cent of SA companies that feared bankruptcy said they could survive if the new Labor government fixed the Coalition’s blunder and restore the tax credit from July 1,’’ he said.