The temporary cut to the fuel excise - reducing fuel prices by 22 cents per litre - announced in the Federal Budget for 2022-23 will provide relief to soaring fuel prices, but it means little to the transport and trucking industry. 

The six month cut to the usual 44 cent tax on fuel prices is designed to drive down the petrol prices that rose over $2/Litre almost a month ago, after weeks of the public calling on the government to take action on one of the most dramatic examples on the rising cost of living. 

While motorists will see the 22 cent price cut at the fuel bowser, the benefit for truck drivers isn’t so extreme, seeing a saving of 4.3 cents per litre.



Natroad CEO Warren Clark said this is because heavy vehicles travelling on public roads have their fuel tax credit reduced by the Road User Charge (RUC) of 26.4 cents. 

With no changes to the RUC announced in the budget, the change to fuel prices will have little effect on the trucking industry, despite the industry being the most vulnerable to high fuel prices. 

“The next step is for the Federal and State and Territory Transport Minister to step up and provide more relief by cutting the RUC,” Mr Clark said. 

“Smaller operators, in particular, are feeling the pressure of increased diesel prices,” he said. 

Narromine truck driver and transport business owner Geoff Johnson pays $16,000 per week to fill his truck at the current price, but says he has been lucky enough to dodge the cost.

While the cost increase has been dramatic, Mr Johnson said he’s been fortunate enough that his clients haven’t complained when he was forced to increase his rates. 

“Luckily enough we haven’t had one complaint yet from either grain traders or farmers. They’ve been very easy to work with,” he said. 

In the past, Mr Johnson said that any rate increase would cause drama with clients, but this time there is a mutual understanding that the trucking industry can’t afford to wear that cost and still turn a profit. 

“I don’t believe we should have to wear it…we’re just moving things from A to B, but we pass those extra fuel prices on to whoever has to pay freight,” Mr Johnson said. 

Another blow to the trucking industry in the budget was the lack of permanency for the instant asset write-off that has been in place for seven years.

“It would have given ongoing confidence to businesses like road transport operators and enabled them to invest in new capital like trucks,” Mr Clark said. 

Despite the disappointments, there were positives for the industry too, including tax deductions for staff training and uptake of digital technology, efficiencies in tax reporting and better access to the Australian Small Business and Family Enterprise Ombudsman, and mental health services.