The Australian Trucking Association and NatRoad have welcomed the Government’s announcement that trucking businesses will be able to apply for zero interest loans to help deal with their skyrocketing fuel costs.
The loans will be available from 20 April under the Government’s $1 billion Economic Resilience Program.
Manufacturing or logistics businesses with an annual turnover of up to $100 million will be able to apply directly to their participating bank for a loan capped at $5 million.
Businesses with an annual turnover in excess of $100 million or that are seeking a loan of more than $5 million will need to apply directly to the National Reconstruction Fund Corporation.
ATA CEO, Mathew Munro, said the zero interest loans would help trucking businesses finance the extra cost of the fuel they have purchased since the start of the Iran war.
“Trucking businesses have run up enormous additional costs over the last 50 days. Those bills are falling due, and many businesses have no immediate way of repaying them,” he said.
“The zero-interest loan scheme will enable businesses to pay off those extra costs over two years.
“The scheme will be a lifeline for businesses that have done everything right, but have not been able to renegotiate their contracts or adjust their fuel levies fast enough to deal with the rising cost of fuel. Even businesses with fuel levies are experiencing significant cash flow problems.
“The ATA has argued before the Fair Work Commission that it should issue an effective and workable emergency order to help businesses past on their fuel costs.
“But the order would apply to their future fuel costs, not the costs they have already incurred. These loans will bridge the gap.”
Munro said the announcement followed discussions between the ATA and the National Reconstruction Fund Corporation last week.
“To be eligible for a loan, a business must fall within the list of eligible Australian and New Zealand Standard Industrial Classification (ANZSIC) codes,” Munro said.
“I can confirm this morning that road freight transport businesses (ANZSIC class 4610) are eligible.”
Each bank administered loan will be subject to the issuing bank’s standard fee structure and default practices.
The National Road Transport Association (NatRoad) described the Federal Government’s move as a “significant win for the road transport industry” and a direct result of sustained advocacy by NatRoad on behalf of operators doing it tough.
The peak body said it was heartening that freight is explicitly named as an eligible sector, and loans can be used to cover increased operating costs caused by rising fuel prices.
NatRoad CEO Warren Clark said the Government deserved credit for moving quickly to deliver a practical, targeted response to the fuel crisis.
“This is exactly what NatRoad has been calling for – accessible, targeted financial support that recognises both the critical role road transport plays in keeping this country moving and the significant increase in fuel costs faced by the transport industry” Clark said.
“The Government has responded quickly, and that effort should be acknowledged.
“Truckies have been doing it extremely tough. This program gives operators a genuine pathway to get through a very difficult period, and we encourage every eligible business to explore it today.”
Clark said the opening of the program marked an important milestone in the industry’s response to the fuel crisis, with NatRoad’s recent survey data underscoring the urgency.
“Around 70 per cent of operators told us they can only sustain their business for six months or less if current conditions persist,” he said. “This program won’t solve everything, but it is a meaningful and welcome intervention right now.”
NatRoad said it will monitor implementation closely to ensure the program reaches those who need it most. Normal bank credit assessment applies, and the association warned operators already under financial stress may face barriers to qualifying.
“We want this program to succeed, and we will continue to work constructively with the National Reconstruction Fund Corporation and relevant ministers to make sure it does,” Warren Clark said. “If small operators are being excluded in practice, we will be raising that immediately.”
Eligible businesses are encouraged to apply directly through participating banks or visit the Economic Resilience Program page.
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