Industry News

NTC calls for submissions

The NTC has called for submissions on a proposed 2.4 percent increase in heavy vehicle road user (fuel) charge that is set to take effect from 1 July 2011.

Under the directive of the Council of Australian Governments (COAG) and the Australian Transport Council (ATC), the NTC is responsible for reviewing national heavy vehicle charges and calculating the annual adjustment. It was agreed by the COAG and ATC in February 2008 that heavy vehicle charges should be adjusted annually to maintain recovery of road costs. The NTC is responsible for reviewing national heavy vehicle charges and calculating the annual adjustment using the annual adjustment formula as contained in the Model Heavy Vehicle Charges Act 2007.

Heavy vehicle registration charges are automatically adjusted each year but the formula used to calculate the road user (fuel) charge (RUC) differs to that of registration charges.

The Fuel Tax Act 2008 dictates that the federal transport minister must undertake a consultation process prior to announcing any changes to the RUC. The federal transport minister has asked the NTC to undertake a four-week consultation on proposed changes to the RUC and then provide the minister with its views about the rate of RUC that should be declared by the minister.

The 2011 Heavy Vehicle Road User Charge Annual Adjustment Consultation Document explains that any adjustments to the RUC and heavy vehicle registration charges are largely dependent on changes in the level of spending on roads. The addition of the latest set of road expenditure figures has resulted in an 8.2% increase in the heavy vehicle cost base. In order to recoup the additional costs assigned to heavy vehicles, it was determined that the
RUC and heavy vehicle registration charges must rise by 2.4%.

The NTC is now seeking comment on the recommendation for a 2.4 percent increase to be applied to the RUC from 1 July 2011.

The NTC invites individual stakeholders and organisations to provide submissions on the proposed increase to the heavy vehicle road user (fuel) charge by 11 March 2011.

Submissions can be made online at www.ntc.gov.au or by mail to Nick Dimopoulos, National Transport Commission, Level 15, 628 Bourke Street, MELBOURNE VIC 3000.

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