The National Road Transport Association (NatRoad) has welcomed the Federal Government’s $1 billion support package for Australian businesses but has warned of transport business closures.
NatRoad described the package, together with additional fuel cost relief measures agreed by state and territory governments, as an important step in helping keep trucks on the road.
NatRoad CEO, Warren Clark, said the package, including interest-free loans for businesses impacted by rising fuel costs and further reductions in fuel excise, recognised the critical role of the road transport industry and the significant pressure operators are currently facing amid the ongoing fuel crisis.
“This is a welcome move and a sign that governments are recognising the strain rising fuel costs and global instability are placing on transport operators,” Clark said.
“Truck operators are essential to keeping supply chains moving, and targeted support like this will help ensure businesses can continue operating during a very challenging period.
“Fuel is one of the largest input costs for our industry, so any reduction that flows directly through to operators makes a real difference on the ground.
“NatRoad has consistently advocated for practical measures to ease fuel cost pressures, and it is positive to see governments working together to deliver relief.”
Warren Clark added that many operators are currently managing significant short-term cashflow pressures, with elevated fuel prices and broader economic uncertainty impacting businesses across the country.
“Recent NatRoad member feedback shows more than 70 per cent of operators expect they can only sustain their business for six months or less if current conditions persist,” he said. “Diesel costs have surged dramatically, with more than two-thirds of operators now reporting fuel accounts for over 40 per cent of their total business costs.
“These businesses are still dealing with high fuel bills and tight margins. Access to interest-free finance can provide immediate relief and help operators stay on the road.”
NatRoad said the combined measures reflect the importance of supporting critical industries like road freight to ensure supply chains continue to function during a period of global disruption.
“In periods of sustained disruption, market conditions alone are not always enough to support essential industries,” Clark said.
“Measures like this provide important breathing space for operators while broader reforms and longer-term solutions are developed.”
NatRoad said the effectiveness of the measures will depend on how quickly and easily operators can access support. “It will be critical that the support is simple, well-targeted and delivers assistance quickly to the businesses that need it most,” Clark said.
NatRoad will review the full details of the programs and continue working constructively with Government to ensure the support delivers meaningful outcomes for operators and the wider freight task.
The Australian Livestock and Rural Transporters Association (ALRTA) also acknowledged the Federal Government’s latest fuel relief measures, including the additional 5.7 cents per litre reduction in fuel excise, as a constructive step in response to rising fuel costs.
However, it said that for heavy vehicle operators, the latest reduction delivers no real net benefit, as the previous announcement to remove the Heavy Vehicle Road User Charge to zero effectively returned this equivalent value through Fuel Tax Credits.
“We acknowledge the Government is acting and we welcome that, but for truck operators, this latest change doesn’t materially shift the dial, it just stops things getting worse.” said ALRTA President, Gerard Johnson.
The real challenge facing operators is not just the cost of fuel, but the cash required to access it.
Diesel prices have surged from approximately $1.70 per litre just a month ago to around $3.00, dramatically increasing the working capital required to operate trucks.
Fuel credit facilities are based on dollar limits, not volume. As prices rise, operators can purchase less fuel within existing credit arrangements, restricting their ability to operate.
“The issue right now isn’t just price, it’s cashflow. Operators are having to find significantly more cash upfront just to keep trucks moving, and that pressure is building quickly,” Mr Johnson said.
The Government’s broader response – including fuel supply measures and access to low-cost loans – is acknowledged as practical and well-intentioned. Although low-cost loans provide short-term flexibility, they also mean operators are borrowing money to continue operating.
ALRTA is joining NatRoad and the Australian Trucking Association (ATA) in calling for urgent engagement between government, regulators and lenders to implement a six-month moratorium on heavy vehicle equipment finance repayments, consistent with the successful COVID-19 model.
“This is a proven solution that can be implemented quickly and at no cost to government. We’re aligned as an industry on this. This type of support will make a real difference on the ground,” Johnson said.
The proposed model does not require new legislation or direct government funding. It operates through coordinated action between government, regulators and lenders:
Repayment Deferral (Up to 6 Months): Eligible operators can pause principal repayments on truck and trailer finance for up to six months.
Loan Term Extension: The deferred repayments are added to the end of the loan or spread across the remaining term, meaning the loan is extended – not cancelled.
No Default Classification: Regulatory guidance (via APRA) ensures that loans under moratorium are not treated as defaults, protecting operators’ credit ratings and avoiding additional capital penalties for lenders.
Eligibility: The measure is designed for otherwise viable businesses that are current on repayments but experiencing temporary cashflow pressure due to fuel cost increases – not for businesses already in financial distress.
No Direct Cost to Government: This is a coordination measure. It relies on lender participation, supported by government leadership and regulatory settings, rather than taxpayer funding.
This model allows operators to redirect cash that would normally go to equipment repayments toward fuel and day-to-day operating costs during the peak of the crisis.
“If operators can see consistent fuel supply returning, panic demand will ease and prices will stabilise,” Johnson said.
“Truck operators are doing everything they can to keep turning up and doing the job. Supporting their cashflow is critical to keeping supply chains moving.”
In other news, fuel pressure fast-tracks NHVR notices.
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