Fuel pump nozzle in truck fuel tank while refuelling

ATA Proposes Fair Fuel Levy Formula

The ATA has unveiled the potential effects of its proposed contract scheme, which includes the introduction of a compulsory fuel levy formula for Australian transport companies. ATA Engages with Lawmakers for More Equitable Contract Guidelines The ATA advocates for a standardised method to determine and modify fuel levies. Recently, the Australian Trucking Association (ATA) journeyed to Canberra to showcase its proposal for balanced contracts within the trucking sector.

ATA’s Chief Executive, Mat Munro, visited the Parliament House to converse with senators about the proposal. He met with Senator Tony Sheldon, Senator Glenn Sterle, Transport Workers’ Union (TWU) national head Michael Kaine, and Senator Tammy Tyrrell.

This discussion was prompted as ATA’s Chairman, David Smith, mentioned that the proposed contract would empower the Fair Work Commission to introduce a compulsory fuel levy formula.

“Our proposal would allow the commission to establish standards for road transport contracts, encompassing a standardised method for determining and revising fuel levies,” stated Smith.

He added, “The commission shouldn’t set a fixed fuel levy percentage, as the components of any formula would differ across businesses.”

Smith emphasised that any fuel levy formula should consider alterations to the national government’s road user fee.

“While some industry contract rate review clauses depend on fuel prices, modifications to the road user fee don’t influence the fuel price. Instead, they alter the fuel tax rebates that transport firms can claim on their periodic BAS,” explained Smith.

He further noted, “The national government has recently raised the road user fee from 27.2 pence per litre to 28.8 pence per litre, with an anticipated additional increase of 3.6 pence per litre in the forthcoming two years. It’s crucial for any fuel levy formula to reflect these hikes.”

Research by the ATA indicates that a mere 34% of transport firms can offset the rise in their fuel expenses, which includes variations in their fuel tax rebates.