While the Australian Livestock and Rural Transporters Association (ALRTA) has acknowledged the Government’s recent fuel relief measures, it states the latest fuel reduction delivers “no real net benefit” to operators.
ALRTA President, Gerard Johnson, said the previous announcement to remove the heavy vehicle road user charge effectively returned this equivalent value through fuel tax credits.
“We acknowledge the Government is acting and we welcome that, but for truck operators, this latest change doesn’t materially shift the dial – it just stops things getting worse,” he said.
“The real challenge facing operators is not just the cost of fuel, but the cash required to access it.”
Diesel prices have surged from around $1.70 per litre to around $3.00, dramatically increasing the working capital required to operate trucks.
Fuel credit facilities, Johnson explained, are based on dollar limits rather than volume.
As prices rise, operators can purchase less fuel within existing credit arrangements – restricting their ability to operate.
“The issue right now isn’t just price, it’s cashflow,” Johnson said.
“Operators are having to find significantly more cash upfront just to keep trucks moving, and that pressure is building quickly.”
The ALRTA is joining NatRoad and the Australian Trucking Association (ATA) in calling for urgent engagement between government, regulators and lenders to implement a six-month moratorium on heavy vehicle equipment finance repayments, consistent with the Covid-19 model.
“This is a proven solution that can be implemented quickly and at no cost to government,” Johnson said.
“We’re aligned as an industry on this. This type of support will make a real difference on the ground.”
The proposed model does not require new legislation or direct government funding.
It operates through coordinated action between government, regulators and lenders:
- Repayment deferral (up to six months): eligible operators can pause principal repayments on truck and trailer finance for up to six months.
- Loan term extension: the deferred repayments are added to the end of the loan or spread across the remaining term, meaning the loan is extended – not cancelled.
- No default classification: regulatory guidance ensures that loans under moratorium are not treated as defaults, protecting operators’ credit ratings and avoiding additional capital penalties for lenders.
- Targeted eligibility: the measure is designed for otherwise viable businesses that are current on repayments but experiencing temporary cashflow pressure due to fuel cost increases – not for businesses already in financial distress.
- No direct cost to government: this is a coordination measure which relies on lender participation, supported by government leadership and regulatory settings, rather than taxpayer funding. This model allows operators to redirect cash that would normally go to equipment repayments toward fuel and day-to-day operating costs during the peak of the crisis.
“If operators can see consistent fuel supply returning, panic demand will ease and prices will stabilise,” Johnson said.
“Truck operators are doing everything they can to keep turning up and doing the job.
“Supporting their cashflow is critical to keeping supply chains moving.”
In other news, Australia Post has acquired last-mile delivery platform, Rendr.
.png){kind=logo}
