The National Road Transport Association (NatRoad) has warned the return of the Road User Charge (RUC), and an increase in the fuel excise in July will place further pressure on ‘mum-and-dad’ businesses and send cost of living soaring.
NatRoad CEO, Warren Clark, said it was not realistic to expect a resolution to the Middle Eastern conflict by July, and warned reinstating charges too early would be a major setback for people still under enormous financial strain.
“This is the wrong call and a kick to Australians who are already on their knees,” Clark said.
“We have said over and over – the RUC should be suspended until the end of the year to keep the country going. For many smaller operators, the 32.4 cents per litre saving from cutting RUC was not a bonus — it was the difference between parking up and staying afloat.
“Our members are already absorbing enormous cost increases across fuel, insurance, finance and compliance. Reinstating the Road User Charge and increasing fuel excise in just a few weeks will hit small businesses, and their cashflow, hardest — making them even less likely to be able to absorb future increases.”
NatRoad warned the measure would inevitably flow through to higher freight costs and increased prices for Australian households and businesses.
“When trucking costs rise, everything costs more,” Clark said.
He added that moves to change trust taxation rules would be another blow for mum and dad businesses – many of which had been set up to protect assets like the family home.
“These are significant and complex changes. While it is pleasing the Government has provided for a significant transition period, the reality is a lot of our smaller operators have set themselves up this way to ensure that if everything went belly up, their kids would have a roof over their heads. The government needs to adequately consult with our industry on these changes, otherwise it just feels like another way for the Government to grab cash from truck drivers.
“It is disappointing when the Government continues to speak about productivity, resilience and supply chains but then chooses to punish small businesses.
“You cannot build a stronger economy while making it harder for the businesses that physically move that economy every day.”
Clark added that the Budget did contain some positive measures, including improving fuel stores, and the extension of the loss carry back provision.
He warned that the timing of the loss carry back provision would mean many struggling businesses would miss out on meaningful immediate relief.
“The loss carry back extension is a sensible decision and one we welcome,” he said.
“But the reality is it won’t apply this financial year — which is when businesses are hurting most.
“It’s disappointing because this is a good policy and it could have made a real difference to operators under pressure right now.”
Clark thanked the government for listening to industry concerns on diesel stockpiles.
“The budget contains a strong fuel security and resilience package, with diesel storage to increase to 50 days. It is important the government get to this storage level as soon as practicable.”
NatRoad said it will continue advocating for practical measures to support operators, including fairer road funding arrangements, better access to working capital support and policies that reduce unnecessary cost pressure on small transport businesses.
In other news, IVECO names top executives.
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