Proposed Changes to Fuel Levy Rules for Trucking Industry

The federal government is moving to change the law so transport operators can recover rising fuel costs from their customers, following a sharp surge in diesel prices and growing financial pressure across the industry.

Under the proposed changes, customers in the road transport supply chain will be legally required to pay a fuel levy. This would be implemented through a faster process within the Fair Work Commission, replacing the current system where contract chain orders can take at least six months to take effect—too slow for the current conditions.

Industry representatives say the urgency reflects the scale of the cost increases. Diesel prices have risen dramatically in a short period, in some cases increasing by more than 50 per cent in just two weeks. As a result, many operators are currently absorbing these costs themselves, with limited ability to pass them on.

National Road Freighters Association President Glyn Castanelli said the change is intended to ensure costs are shared more fairly across the supply chain. He noted that many operators are continuing to run at a loss to keep their businesses afloat, warning that some are now “days away from failure” and may be forced to stop operating altogether.

The Australian Trucking Association (ATA) also supported the announcement, highlighting that fuel prices have nearly doubled at the terminal gate in recent weeks. CEO Mathew Munro described the situation as an emergency, stating that most businesses cannot absorb the increase and many lack mechanisms to pass on fuel costs under current contracts.

The proposed amendment would allow the Fair Work Commission to introduce urgent fuel cost orders more quickly, ensuring operators without existing fuel surcharge arrangements can recover costs, while maintaining agreements already in place.

The changes are expected to go before Parliament shortly, with industry groups working alongside government and unions to finalise the details and accelerate implementation.