Albanese neglects trucking industry: Federal Budget

Prime Minister Anthony Albanese said the best defence against global pressures is a stronger economy but the Australian road transport industry does not see any immediate gains in the latest Federal Budget commitments.

The Albanese Labor Government is reported to be investing in ‘productivity-enhancing’ infrastructure like the National Broadband Network (NBN) and preparing for a global net zero transformation.

“It’s clear the rules that underpinned global economic engagement for more than 40 years are being rewritten,” said Albanese.

“Our economic plan is all about ensuring Australians are beneficiaries, not victims, of this churn and change.”

Actions, however, speak louder than words.

The Budget commitments appear to be somewhat lacklustre for trailer builders, truck manufacturers, equipment specialists, suppliers and the trucking industry at large.

Aside from $3 billion to support local green metals (Future Made in Australia), $6 billion for private investment in renewable/low-emission technologies and $17.1 billion over the next 10 years for road and rail projects, there are no direct commitments for Australia’s road transport industry.

Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, detailed the infrastructure works for the next decade:

$7.2 billion for safety upgrades on the Bruce Highwayin Queensland.
More than $2.3 billion for critical infrastructure upgrades in the Western Sydney region, including $1.0 billion to preserve the corridor for the South West Sydney Rail Extension and $500 million to upgrade Fifteenth Avenue.
A further $465 million for New South Wales to plan for regional projects and fix choke points, including $250 million to upgrade Mona Vale Road and $115 million to reduce travel times on Terrigal Drive.
$2.0 billion to upgrade Sunshine Station in Victoria, a ‘crucial’ project to deliver Melbourne Airport its first rail link.
$1.1 billion to support upgrades along the Western Freeway in Victoria.
$1.0 billion for the ‘Road Blitz’, a new package of works to increase capacity and improve efficiency in Melbourne’s suburbs and surrounds.
$350 million for the ‘Westport – Kwinana Freeway Upgrades’ in Western Australia.
$200 million to duplicate sections of the Stuart Highway from Darwin to Katherine in the Northern Territory.
$200 million to upgrade the Arthur Highway in Tasmania.
$125 million for the Curtis Road Level Crossing Removal in South Australia.
$50 million towards upgrading the Monaro Highwayin the Australian Capital Territory.
A further $200 million to ensure the delivery of the Rockhampton Ring Road in Queensland.
A further $70 million to seal the remaining 11 kilometres of unsealed pavement on the Kennedy Developmental Road between The Lynd and Hughenden in Queensland.

The Federal Government, according to King, is also committed to increasing road safety and productivity.

“Funding has also increased substantially so that the Roads to Recovery Program will progressively rise to $1.0 billion per year, and Black Spot Program funding will reach $150 million per year,” said King.

“At least $200 million is also available each year under the new Safer Local Roads and Infrastructure program, to address current and emerging priorities in road infrastructure.

“We are investing $16.9 million to support skills and training in the maritime industry. This includes $14.4 million over four years to provide access to training berths at sea, and $2.5 million for the Transport and Logistics Jobs and Skills Council to address training barriers.

“As part of the Government’s priorities for transport, we are providing $32.7 million in 2025-26 to support ongoing safety and regulatory services provided by the Australian Maritime Safety Authority, the Australian Transport Safety Bureau and the Civil Aviation Safety Authority.”

Treasurer Jim Chalmers said the Federal Budget will save Australians $10 a week once fully implemented in 2027/28.

Despite cuts, personal income tax is expected to rise to 54 per cent of tax revenue.

Young Australians will bear the brunt of this tax burden.

Investments in projects including the NBN and Snowy Hydro are still contributing to debt.

Independent economist Chris Richardson told media he estimated the fundamentals of the Budget have worsened by about $50 billion in recent years.

“Making permanent promises off the back of a temporary spurt of revenue is an old mistake – and that’s what this measure of the structural budget position suggests that we’ve done,” he told Michael West Media.

KPMG Chief Economist, Brendan Rynne, said the tax-to-gross-domestic-product ratio is set to increase and in the absence of serious tax reform, bracket creep will be relied upon more and more.

A total of $179.5 billion in underlying deficits is predicted over a five-year forward estimates period before shrinking as spending is expected to decline.

Meanwhile, AMP Bank economists forecast that tax cuts in the Federal Budget are unlikely to affect the interest rate.

Progress on price growth is expected.

A fall in travel costs, weak housing price growth and slowing services inflation will contrast with a rise in electricity prices and seasonal education costs according to AMP Chief Economist, Shane Oliver.

Meanwhile, the next Federal election is slated for 3 May 2025.

Leader of the Opposition, Peter Dutton, has responded to the recently announced Federal Budget.

“When Australia is governed badly, dreams and ambitions become beyond reach,” he said. “And that’s what happened during the last three years under the Albanese Government.”

Dutton has proposed a positive plan to deliver a stronger economy with lower inflation, cheaper energy, affordable homes, quality healthcare and safer communities.

However, he has not shared any direct comments about commitments to the Australian road transport industry.

Economists have warned that Dutton’s aim to halve the fuel excise, for instance, is ‘nothing but populist sugar’ that won’t address the problems with the Federal Budget.

Oliver said halving the fuel excise distracts from the real issue of tax reform in Australia.

A portion of revenue from the excise is reported to stream into state and territory road infrastructure spend.

Engineers Australia CEO, Romilly Madew AO, said the nation’s engineering capability is facing workforce challenges and government holds the keys to doing so much more in areas such as education to attract Australians currently deterred by significant barriers to entry.

“Australia’s future economic prosperity will depend on a skilled and diversified workforce with strong engineering capabilities, to support the energy transition to net zero, the delivery of critical infrastructure and the revolution of AI and robotics improving productivity,” said Madew.

“But just 16 per cent of qualified engineers and 19 per cent of engineering graduates in Australia are women. More needs to be done to dismantle the barriers that exist and encourage more people into the profession.”

Engineers Australia Acting Chief Engineer, Bernadette Foley, said many of Australia’s skilled migrant engineers are also facing unnecessary barriers to employment.

“We are underutilising talented engineers who bring experience and expertise from overseas,” he said.

“Some of them wind up as Uber drivers or baristas when they can’t secure a job commensurate with their engineering expertise.

“Meanwhile, critical projects are demanding engineering skills.

“With concerted and imaginative support, government and industry can unlock the talent that will drive Australia forward so we can shine in a competitive global marketplace.”