Frustrated truckies blast new tax and warn of the ‘domino effect’ on prices

Frustrated truck drivers have ripped into the government for raising road use costs, making a dire warning for inflation.

Frustrated truck drivers have ripped into the government for increasing the Heavy Vehicle Road User Charge, saying the extra fees will put even more pressure on their stretched finances.

The charge, which is a tax truckies pay for using roads, will increase from 27.2 cents to 32.4 cents per litre of diesel used by 2025 which, truckies say, will cause a “domino effect” on the costs of goods around the country.

Truckies have unleashed their frustration over an increase to the Heavy Vehicle Road User Charge. Picture: David Swift/NCA NewsWire

Sydney truckie, Les, blasted the “ridiculous” move in an interview on 2GB and told host Ben Fordham that the move was “just another hit on a cash cow”.

“That’s all we are to the transport industry, we’re a cash cow,” Les said.

“Every time we do something, the more you do, the more they hit us with taxes, fuel – we’re paying twice the fuel we were from last year.”

He said he was also paying anywhere up to $1000 on tolls for his small trucking operation.

Another caller, AJ – who is a third-generation trucking business owner with a larger fleet of around 40 vehicles – said the increase, tacked on top of the sky-high fuel prices, means he will likely not be able to distribute raises to staff.

”So, we probably use anywhere from 60 to 70,000 litres of diesel a week. Our fuel bill’s probably, you know, up over $100,000 easily each week,” he told 2GB.

The increase to the Heavy Vehicle Road User Charge, Fordham said, means AJ is set to spend $182,000 more on fuel every year to operate his business.

Heavy vehicle operating costs are set to rise by 6 per cent each year over the next three years. Picture: Brendan Radke

AJ told the program the higher costs for heavy vehicle operators would also mean “costs to our customers go up, and that will start the domino effect” known as inflation.

“When their cost of living goes up, (staff) come to us and go: ‘Hey boss, we need some more money’, but we’ve got to pay extra for all these things,” AJ said.

“So I just ended up going around and around in circles with these higher costs to us.”

Les was glib when asked what he has gained from the budget, saying the only one was realising that it was probably better to “go on the dole”.

“Go on the dole and you’ll get more money, because the harder we work the more we have to give the money away,” he said.

“I have no problem with people that need to be on the dole being there, but (for Labor) to turn around and do what they’ve done … it’s just ridiculous.”

Continue the conversation - [e-mail]

The increases come into play from July 1.

Australia’s transport ministers announced on Monday that they had agreed to increase charges by 6 per cent each year for the next three years, to “help provide some certainty to industry”.

“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 in a joint statement.

As part of that increase, the Road User Charge will increase from 27.2 cents a litre to 28.8 cents a litre after July 1 this year, when the changes come into effect.

It will then jump to 30.5 cents and 32.4 cents in the years after. Registration costs will also increase for heavy vehicles.

The heads of industry bodies criticised the decision, but said it was the best result they could have asked for – especially when an increase as high as 10 per cent was reportedly discussed.

National Road Transport Association boss Warren Clark described the increase as a death knell for some operators.

“This is a cruel blow to operators already under extreme stress who are desperately trying to stay viable,” he said, slamming the ministers’ claims about striking a balance for the industry.

“In effect, they’ve given a final push to those businesses that are already teetering on the edge.”

Continue the conversation - [e-mail]