The trucking industry may have dodged a tax hike bullet with State transport ministers appearing to soften on a proposed lift in trucking taxes. A ministerial council meeting to consider increasing road-user charges on heavy vehicle diesel use and registration will be held in Melbourne tomorrow but trucking groups said the plan, for increases in combined charges of up to 11.8% over three years, could send companies broke and force up the price of groceries. Source: Timberbiz
There are reports that following the backlash and lobbying by the trucking industry, there are signs some state ministers are softening on the proposal.
“We are getting a sense that there is a growing appetite for toning down the numbers and we are hopeful for a better result,” said Gary Mahon, chief executive of the Queensland Trucking Association.
Queensland Transport Minister Mark Bailey has already said his state would not support a large increase in RUC charges at tomorrow’s meeting.
“The road freight task is more demanding in a state as vast and decentralised as Queensland, so reform at the national level needs to ensure trucking companies of all sizes and scale enjoy a level playing field,” he said.
“Queensland doesn’t support charges increasing by more than 11% over three years. Our current position is to back the National Transport Commission undertaking a comprehensive review of road-user charging, including further consultation with industry and the wider public — and to support a CPI-only increase from July 1, 2020, while that occurs.”
Mr Mahon said the sector wanted to see analysis justifying any movement in the RUC diesel component, which already adds 25.8c to every litre for heavy vehicles.
NSW Transport Minister Andrew Constance said while a decision would be made “in consultation with our federal colleagues”, his government shared concerns about any increase.
NSW “is extremely concerned about the impact a price hike would have on rural communities already struggling to cope with the drought”, he said.
Other states were non-committal.
Rockhampton-based trucker Bryan Smith has been reported as saying sections of the industry would “bleed” from a hike in the RUC and that governments appeared to see it as soft target.
“The average pollie and bureaucrat sees there’s no votes in transport so we’re an easy kick,” Mr Smith said. “We don’t want a free ride or special concessions, but what they are proposing is three times CPI.”
