Truckers are the latest group to hit back at the federal Australian Labor government after it raised a bevy of new taxes to offset welfare and net-zero spending in its latest budget.
“This level of increase is considered by ministers to strike the right balance between the need to move back towards cost-recovery of the heavy vehicle share of road expenditure and the need to minimise impacts on this vital industry,” the ministers said.
The charge applies to each litre of diesel used by heavy vehicles on public roads. The current rate set by the National Transport Commission is 27.2 cents per litre, which will increase to 32.4 cents per litre.
For a single truck, it is not uncommon to use over 100,000 litres of diesel fuel per year. For an entire fleet, that number skyrockets.
For freight businesses, these expenses come on top of daily costs like tolls, insurance, rising fuel costs, and registration—adding up to hundreds of thousands in fees each year.
A trucker in western Sydney, “A.J.” from Tripodi Transport, said the impact of the tax hike would be “massive.”
“Once again they’ve targeted the heavy vehicle side of things. Prices of fuel go up, and that means costs to our customers will go up, and that will start the domino effect. Inflation will go up again, and it will slowly creep back up there,” he told 2GB radio on May 11.
Tripodi Transport operates over 40 trucks.
“We probably use anywhere from 60 to 70,000 litres of diesel a week. So our fuel bill is up over $100,000 easy each week.”
While Les, who works at the Sydney Wharves, said the industry was being treated like a “cash cow.”
“We’re paying twice the fuel we were from last year,” he said.
The message from Labor’s latest budget was to “go on the dole [welfare],” he added.
Over 200 Freight Companies Closed Down Last Year
Pressure on freight businesses continues to grow, forcing several operators to hang up their boots.Just last month, another logistics company closed down. Rivet Mining Services, which provides bulk haulage in Western Australia, went into voluntary administration.
It follows the dramatic collapse of Australia’s largest independent cold transport trucking company in February.
Scott’s Refrigerated Logistics is in administration, putting the jobs of 1,500 individuals at risk.
Tax Increases Across the Board to Fund Big Government
Meanwhile, agricultural groups, the tobacco industry, and the petroleum industry have been dealt heavier tax burdens while the Labor government increases spending on a swathe of welfare initiatives—considered a politically popular move that will appeal to large sections of the electorate.Programs like JobSeeker (for the unemployed), Austudy (students), and Youth Allowance (young unemployed) will receive a boost to their fortnightly government payment.
While single-parent payments will also be expanded, childcare support will be increased, and eligible households and businesses will receive a $500 electricity bill relief payment. In addition, aged care workers will also see their wages increased by 15 percent.
At the same time, the government will try to rein in the spiralling costs of the National Disability Insurance Scheme (the federal budget’s fastest-growing cost base) but has stopped short of announcing any major spending cuts overall.
Prime Minister Anthony Albanese has been at pains to emphasise that the budget his government handed down on May 9 will not add to ongoing inflation problems.
“This is a responsible budget which at the same time looks after people.”
“You don’t have any planning for this; 300,000 people a year on average will contribute to the housing crisis and the rental crisis,” he said.
