Have Your Say on Proposed Changes to Heavy Vehicle Charges

16 Mar Blog

Truck operators across Australia are being invited to provide feedback on a proposed new system for calculating heavy vehicle road charges.

The National Transport Commission (NTC) is considering replacing the current Pay-As-You-Go (PAYGO) model with a Forward-Looking Cost Base (FLCB) model from 2027–28, pending approval from transport ministers later this year.

Public consultation is now open through the Consultation Regulatory Impact Statement (C-RIS) and will run until 21 May 2026. The NTC is seeking industry feedback on the design of the new model, its potential impacts on affordability for operators, government revenue, and possible alternative approaches.

Under the current PAYGO system, heavy vehicle charges attempt to recover road spending in the same year the costs occur. However, the NTC says this model has struggled to keep up with rapidly increasing road infrastructure spending.

The proposed FLCB model would take a different approach by spreading road construction and maintenance costs over the expected life of infrastructure assets. Charges would be calculated based on depreciation of infrastructure, return on capital, and ongoing maintenance and operational costs.

By forecasting future expenditure and spreading cost recovery over time, the system aims to reduce fluctuations in yearly charges and provide greater predictability for industry.

However, concerns have already been raised within the transport sector. Queensland Trucking Association CEO Gary Mahon warned that the industry is already facing significant pressures, including rising freight demand and downward pressure on freight rates. He questioned whether increasing cost recovery from operators is sustainable.

The NTC is also hosting a series of online information sessions throughout March and April to explain the proposed model and answer industry questions.

With consultation now open, truck owners and industry stakeholders have the opportunity to review the proposal and submit feedback before the May deadline. Have Your Say.

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