The Government will increase the Road User Charge for heavy vehicles travelling on public roads leading to a reduction in fuel tax credit entitlements.
Road User Charge increases
The current Road User Charge of 27.2 cents per litre of diesel will increase by 6 per cent per year over three years to 32.4 cents per litre in 2025-26.
Heavy vehicles with a gross vehicle mass of more than 4.5 tonnes travelling on public roads are subject to the road user charge, which is collected by reducing the fuel tax credit entitlement available to transport operators.
The measure is expected to decrease government expenditure on the fuel tax credit by $1.1billion over the forward estimates period and is intended to contribute funds for road maintenance and repair.
This increase will in turn lead to increased costs for operators in the transport industry which we expect, will be passed on to business customers and ultimately consumers.
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