The Australian Trucking Association (ATA) has met with Infrastructure and Transport Minister, Catherine King, to discuss the industry’s concerns about the Productivity Commission’s proposal to raise truck taxes. The ATA says the Commission’s plan would phase out fuel tax credits for trucking operators, even though the commission’s own figures show the plan would more than double the effective fuel tax paid by trucking operators from 32.4 cents per litre now to 66.1 cents per litre in 2035.
“We told Minister King that many trucking businesses are under intense financial pressure and have no capacity to absorb increased costs,” said ATA Chair, Mark Parry.
“A recent CreditorWatch survey found that the national closure rate for road transport in the 12 months to November 2025 was 8.5 per cent – one in 12 businesses. The number of trucking businesses with large tax debts has surged.
“The financial pressure has helped cause the surge in illegal sham contracting, which is making it even harder for businesses that do meet their employment and safety obligations.
“We argued that the Government should retain fuel tax credits in the 2026-27 budget and beyond, and that the road user charge should be increased by no more than four per cent,” he said.
During the meeting, Parry and ATA CEO, Mathew Munro, presented Minister King with one of the ATA’s industry promotion trucks, which features the message “Trucks make life happen”.
“The models are just the first part of our campaign to stress the industry’s commitment to boosting truck safety, reducing emissions, developing our workforce and building better roads,” Mathew Munro said.
The ATA said it plans to convene further meetings with government ministers and relevant staff to discuss the Productivity Commission’s proposal.
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