Fuel Allowance for all staff?

The ACTU launched a case in the Fair Work Commission to increase vehicle allowances for workers who need to use their own vehicles for travel during working hours and who are covered by modern awards with vehicle allowance provisions.

Vehicle allowances require employers to pay employees a per-kilometre amount to cover their fuel and maintenance costs, among others.

The Fair Work Commission adjusts these annually on 1 July, leaving workers to absorb a growing gap in their vehicle allowance and the actual cost of higher fuel prices.

Currently the average vehicle allowance is set at 99 cents per kilometre, with about 40% of that designated to cover fuel prices.

The ACTU case will argue the rate should be lifted by at least an extra 10 cents to compensate for higher fuel prices.  It also seeks to bring forward the adjustment to vehicle allowances so that workers can have relief earlier than July. Unions will also argue for the allowance to be reviewed monthly and updated in line with CPI private vehicle costs for at least the next 12 months, while fuel prices remain volatile.

“Petrol prices have surged, but workers’ vehicle allowances have not even remotely kept up. Australians are paying out of their own pockets just to do their job, and that is not sustainable amid all the other cost of living pressures working people are enduring”, said ACTU Secretary, Sally McManus.

“It is a basic principle that workers should not be out of pocket when they are required to use their own vehicle at work, they must be fully compensated. The current allowance is not delivering fair compensation to cover cost and so it must be adjusted”, continued Ms McManus.

The case seeks to increase the allowance in the Vehicle Repair Service and Retail Award 2020.

What this means for the fuel retail industry?

“While the case does refer to the Award that covers the fuel retail workers, the Vehicle Repair Service and Retail Award 2020, the proposed changes do not impact fuel retail workers”, explained ACAPMAs Elisha Radwanowski.

“The ACTUs proposed changes are limited to those workers who are ‘driving’ their own vehicle as a core part of their role within the Award and does not include travel to and from a standard workplace”, concludes Elisha.