The Australian Trucking Association (ATA) has welcomed the federal government’s announcement at the weekend that it will extend its fuel excise and road user charge relief to the end of July, but with new rates.
From July 1, fuel excise will be 16 cents per litre (cpl) lower than its normal rate. The heavy vehicle road user charge will also be 16 cents per litre lower than its normal rate, meaning the fuel tax credit rate of 20.6 cpl will remain the same.
The relief package was originally scheduled to end on June 30, which would have seen a 32 cpl increase in fuel excise and a 32.4 cpl increase in the road user charge.
ATA CEO Mathew Munro said the extension recognised that trucking businesses would have had difficulty managing such a large increase.
“There are trucking businesses teetering on the brink, and such a large jump could have been disastrous for them,” Munro said.
“Trucking businesses and their customers will still face an increase in effective tax rate on fuel, but it will be more manageable.
“The ATA would have preferred to see the full reduction extended until the crisis is completely over, but the government’s decision will soften the blow and give it the scope to extend the timing of further increases if there are delays in the US-Iran negotiations under last week’s MoU.”
The Australian Logistics Council (ALC) also welcomed the decision to extend fuel excise relief through July, saying the measure will provide immediate relief for freight transport operators.
ALC CEO Dr Hermione Parsons said fuel costs are felt across the whole economy, not just at the bowser.
“Diesel is a core operating cost for freight transport. It powers the trucks, freight rail services, ports, warehouses, distribution centres and delivery networks that keep Australia supplied,” Dr Parsons said.
“When freight costs rise, those costs do not stay inside transport businesses. They flow through supply chains and add pressure to the price of food, groceries, construction materials, medical goods, retail products, and essential services.
“This extension gives freight transport and logistics operators some breathing room and supports the broader effort to ease cost-of-living pressure for all Australians.”
Dr Parsons said the reduction in the Heavy Vehicle Road User Charge for July was particularly important for road freight operators, including smaller businesses with limited capacity to absorb sudden fuel price increases.
“Road freight connects ports, farms, warehouses, shops, hospitals, construction sites and households,” Dr Parsons said.
“Every Australian relies on freight, whether they see it or not. Keeping freight costs under control is part of keeping household costs under control.”
ALC said the July extension is welcome, but temporary relief must sit alongside longer-term work on fuel security and supply chain resilience.
“This is relief, not a solution,” Dr Parsons said.
“Fuel markets remain volatile, and freight businesses are still carrying higher operating costs.
“Australia needs a stronger framework for managing fuel disruption. That means recognising freight transport and logistics as core social and economic infrastructure, and protecting the systems that allow fuel, food, medicine, equipment and emergency supplies to reach where they are needed.”
The Queensland Trucking Association said the excise extension is welcome relief, but it is not a long-term solution.
“Fuel remains one of the biggest and most unpredictable costs for road transport operators. Temporary reductions help, but they do not address the structural challenges facing the industry,” said QTA CEO Gary Mahon.
“Road transport needs a clear future-proofing plan that deals with fuel security, fair cost recovery, and practical support for operators to assess alternative fuels and low-emission fleet options.
“The industry cannot plan, invest or transition on short-term relief alone. Road transport keeps Australia moving. It needs policy certainty that reflects that essential role.”
Extracted in full from: https://bigrigs.com.au/2026/06/21/extension-of-fuel-excise-relief-softens-blow-for-operators-says-ata/
