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Australian Trucking Association Challenges Proposed Fuel Tax Increase

Industry Leaders Warn of Economic Impact from Potential Doubling of Truck Fuel Tax

Australian Trucking Association Challenges Proposed Fuel Tax Increase?w=400

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The Australian Trucking Association (ATA) has strongly opposed a proposal by the Productivity Commission to phase out fuel tax credits for trucking operators, a move that would effectively double the fuel tax paid by the industry.
This recommendation, outlined in the commission's final report on the net zero transformation, suggests increasing the effective fuel tax rate from the current 32.4 cents per litre to 66.1 cents per litre by 2035.

ATA Chair Mark Parry emphasized that the existing fuel tax credit system plays a crucial role in reducing freight costs for all Australians, including rural exporters. He highlighted that removing these credits would not only escalate costs for the trucking industry but also for consumers who have already faced significant increases in electricity prices and childcare fees in recent years.

The fuel tax credit system allows trucking operators to pay a reduced fuel tax rate, acknowledging the essential role of the industry in the national economy and aiming to prevent double taxation on fuel. The proposed elimination of these credits raises concerns about increased operational costs for trucking businesses, which could lead to higher prices for goods and services across the board.

Industry leaders are calling on the government to reject the Productivity Commission's plan, arguing that such a tax hike would place undue financial pressure on an industry already grappling with challenges such as driver shortages, rising insurance premiums, and regulatory compliance costs. The ATA's pre-budget submission underscores the need for policies that support the sustainability and growth of the trucking sector, rather than imposing additional financial burdens.

For transport operators, staying informed about policy developments and engaging in industry advocacy efforts is essential to ensure that their interests are represented in governmental decisions that impact the sector's viability and the broader economy.

Published:Tuesday, 17th Feb 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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Moral Hazard:
The concept that individuals may take on more risk when they do not bear the full consequences of that risk, often relevant in insurance scenarios.