Fuel Excise Relief Extended: What It Means for Transport Operators

23 Jun Blog

The Federal Government has announced a one-month extension of its fuel excise and Heavy Vehicle Road User Charge relief measures, providing temporary cost relief for trucking and logistics businesses amid ongoing global fuel market uncertainty.

The original relief package was due to end on 30 June 2026. Instead, from 1 July to 31 July, fuel excise and the Heavy Vehicle Road User Charge will each remain discounted by 16 cents per litre before returning to their normal rates.

For heavy vehicle operators, this means the Fuel Tax Credit rate will remain unchanged at 20.6 cents per litre throughout July.

A Softer Landing for the Transport Industry

Without the extension, operators were facing a significant increase in fuel-related taxes overnight. The Australian Trucking Association (ATA) says the government’s decision will help ease pressure on businesses already dealing with rising operating costs.

ATA CEO Mathew Munro said many transport operators are operating on tight margins and would have struggled to absorb the full increase immediately.

“Trucking businesses and their customers will still face an increase in the effective tax rate on fuel, but it will be more manageable,” he said.

While the ATA would have preferred the full discount to remain in place until global fuel markets stabilise, it acknowledged the extension gives government flexibility should further international disruptions occur.

Freight Costs Affect Everyone

The Australian Logistics Council (ALC) welcomed the extension, noting that fuel costs impact far more than just transport businesses.

“Diesel is a core operating cost for freight transport,” said ALC CEO Dr Hermione Parsons.

“When freight costs rise, those costs flow through supply chains and add pressure to the price of food, groceries, construction materials, medical goods, retail products and essential services.”

The ALC says the temporary extension provides valuable breathing room for freight and logistics operators while helping reduce broader cost-of-living pressures across the economy.

Industry Calls for Long-Term Certainty

While the extension is welcome, industry bodies agree it is only a short-term measure.

The Queensland Trucking Association (QTA) says fuel remains one of the largest and most unpredictable expenses facing transport operators.

QTA CEO Gary Mahon said the industry needs long-term policy certainty around fuel security, cost recovery, and support for future fuel technologies.

“Road transport keeps Australia moving. It needs policy certainty that reflects that essential role,” he said.

What Happens Next?

The discounted rates will remain in place until 31 July 2026:

• Fuel excise remains discounted by 16 cents per litre
• Heavy Vehicle Road User Charge remains discounted by 16 cents per litre
• Fuel Tax Credit rate remains at 20.6 cents per litre

The Federal Government has indicated it will continue monitoring global fuel markets and has not ruled out further support measures should international conditions deteriorate.

For transport operators, the extension provides some short-term certainty and a more gradual transition back to normal fuel taxation rates. However, with fuel prices continuing to fluctuate globally, managing fuel efficiency and operating costs remains as important as ever.

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