Australia’s business chambers want the federal government to reduce the heavy vehicle road user charge to ease pressure on truckies as the fuel crisis escalates.
With diesel prices surging above $3 a litre across the country, truckies and other transport businesses are beginning to feel the pinch, and this could soon be passed on to the consumer as household goods get more expensive.
The Australian Chambers of Commerce and Industry (ACCI) today urged the government to reduce the tax from 32.4 cents a litre to relieve pressure on transport businesses and owner operators.
They said the tax brought in $3 billion of revenue a year, but reducing it would avoid “even worse outcomes” during Australia’s current petrol plight.
“That will help control the costs in the supply chain,” ACCI’s Andrew McKellar said at a press conference today.
“For things like food and grocery prices, it will help insulate the impact there and moderate any inflationary impact that they’re seeing.”
Comparing it to the fuel excise, which the federal opposition has called for the government to reduce, McKellar said reducing the heavy vehicle charge was a “targeted measure” that had a more meaningful impact and would not adversely affect inflation.
“It’s something that doesn’t send an artificial signal, such as what an immediate reduction in the fuel excise would do,” he said.
“It doesn’t encourage artificially higher demand.
“We want to minimise the adverse economic impact.”
It comes as the ACCI urged the government to implement a four-point plan to address the fuel crisis, which has pushed up prices and left pumps to run dry across Australia.
This includes securing the supply of petrol by working with allies in the Gulf region, and working with distributors to get fuel out to all Australians quicker.
They have also called on the government to manage demand, not ruling out measures such as fuel rationing, as well as ensuring businesses can survive the price surges; the reduction to the heavy vehicle charge is part of this.
“Efforts must be stepped up to ensure Australian businesses come through this crisis in the best shape possible,” McKellar said.
He clarified Australia was still not at the point of needing to ration fuel, but highlighted a scenario that might make it possible.
“If we are seeing material shortages, difficulty in securing those international supplies,” he said.
The state and territory leaders met with Prime Minister Anthony Albanese today ahead of a National Cabinet meeting tomorrow.
NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.
