ATA criticises 2013 budget

The Australian Trucking Association (ATA) has criticised the 2013 Budget as it does not reverse the Government’s plan to extend the CarbonTax to the trucking industry.

The fuel used by trucking businesses is currently exempt from the carbon tax. According to ATA Chief Executive Stuart St Clair, the Government now plans to extend the tax from 1 July 2014, which would increase the industry’s effective fuel tax by almost seven cents per litre – a 27 per cent tax hike.

Reportedly, the plan would cost the industry $510 million in 2014-15. “More than 70 per cent of trucking businesses have only one truck. They don’t have the market power to pass the tax onto their customers, they run on very tight margins, and they generally don’t have the option of switching to renewable fuels,” St Clair said.

He said the projected collapse in the carbon price in 2015-16 should have been a wakeup call for the Government. “The carbon price will be set by the market from 1 July 2015. The Budget papers forecast it will collapse to $12.10 per tonne as a result of the low European carbon price. That converts to 3.267 cents per litre of diesel.

“So the plan would subject trucking operators to a devastating tax spike in 2014-15. This would be followed by a carbon price still exceeding three cents per litre in 2015-16, and then uncertainty in future years. It would be managed through a pricing mechanism that would give operators only three week’s notice of each price change.”

Meanwhile, the Government also announced its next Nation Building Program – meant to support the construction of better, safer roads and fund truck rest areas and productivity measures. “As it stands, though, this valuable funding will not help the trucking businesses that have to leave the industry because of the carbon tax,” St Clair concluded.

Leave a Reply

  1. Australian Truck Radio Listen Live
Send this to a friend