Queensland trucking in truck charges blast

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Australasian Transport News (ATN) / November 4, 2015

The Queensland trucking industry has joined a growing chorus demanding relief from exorbitant heavy vehicle registration and fuel charges.

Queensland Trucking Association (QTA) president Ben Almond used his speech at the group’s 2015 annual dinner to criticise governments for sticking to the existing charging formula despite knowing it has led to trucking operators being overcharged.

Like the Australian Livestock and Rural Transporters Association (ALRTA), the QTA wants transport ministers to agree to a reduction in charges to make up for the years of overcharging.

Transport ministers are due to meet this week to discuss the heavy vehicle charges to apply from July 1, 2016. The National Transport Commission (NTC) in 2014 recommended changes to the charging system to prevent overcharging.

"My association has recently provided the Queensland Government with a detailed submission on the subject of heavy vehicle charging," Almond says.

"Our message and that of the industry throughout Australia is that it is time to stop the overcharging of truck operators in this state and in this country. Minister’s accepted in 2014 that the overcharging was a reality.

"The option of freezing government revenue will simply lead to a continuation of overcharging to the extent of $1.2 billion over the next six years.

"We urge the Queensland Government to support the direct implementation of the NTC option which will deliver a reduction in heavy vehicle registration removing the current overcharging."

The ALRTA and the South Australian Road Transport Association (SARTA) have publicly voiced their concerns about heavy vehicle charges.

ALRTA president Kevin Keenan says the trucking industry is being overcharged about $200 million annually under the existing system.

Transport ministers put off implementing the NTC’s recommendations until July 1, 2016, but Keenan claims alternative options are now being considered.

"We have already had a two year delay, which is more than enough time for governments to adjust to a fairer charging system," Keenan says.

"Further delays would be nothing more than a blatant opportunistic tax grab".

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ATA enters fray on heavy vehicle charges

Australasian Transport News (ATN) / November 5, 2015

Existing system will lead to trucking industry being overcharged $1.2 billion, lobby group says.

The trucking industry is at risk of being overcharged more than $1 billion over six years unless Australia’s governments reform heavy vehicle charges, the Australian Trucking Association (ATA) has warned.

The industry’s peak representative group has pushed for changes to the charging system, one day out from a ministerial meeting on the matter.

The National Transport Commission (NTC) told transport ministers in 2014 the existing formula used to determine fuel and registration charges was outdated and responsible for overtaxing truck and bus operators.

A new set of options has been presented to ministers to consider when they meet to decide fees for next financial year.

"We understand the NTC has provided ministers with three options," ATA CEO Chris Melham says.

"The best option would be for ministers to agree to eliminate the overtaxing immediately.

"This would see the road user charge fall from its current level, 26.14 cents per litre, to 25.3 cents per litre in 2016-17.

"The vast majority of heavy vehicle registration charges would also fall."

Transport ministers are expected to consider a freeze to existing charges during tomorrow's meeting.

"But freezing government revenue wouldn’t solve the problem," Melham says.

"It would overtax the truck and bus industries by more than $1.2 billion over the next six years, in addition to the overcharging in 2015-16 and previous years."

He adds that transport ministers need to recognise that charges significantly affect the competitiveness of trucking operators.

"The problem is made worse by the high upfront costs of heavy vehicle registration charges, which create cashflow difficulties for small businesses," he says.

The federal government froze the fuel excise in its 2014-15 and 2015-16 budgets, in recognition of the problems with the charging model.

The Australian Livestock and Rural Transporters Association, the Queensland Trucking Association and the South Australian Road Transport Association have also lobbied for a reduction in heavy vehicle charges to offset the overcharging that has occurred.