The Victorian Transport Association has welcomed the reinstatement of the fuel excise tax credit by federal Transport and Infrastructure Minister, Catherine King.
It follows months of advocacy by the transport industry for its reinstatement to offset higher diesel costs.
The credit will increase by 1 cent to 18.8 cents per litre from 29 September 2022, with the higher amount intended to offset an increase to the heavy vehicle road user charge of 0.8 cents per litre, which takes effect at the same time.
The annual change to the heavy vehicle road user charge follows public consultation on the proposed increase which was undertaken by the National Transport Commission, and Commonwealth.
State and Territory Ministers were mindful that an increase needed to be manageable for the industry according to King.
The road user charge is intended to recover the greater cost of maintenance and repair as a result of the use of heavy vehicles on Australian roads.
“We gratefully acknowledge and sincerely thank the minister for listening to the legitimate concerns of industry, which is reflected in the higher fuel excise tax credit afforded to road transport operators,” said the VTA in a statement.
“In our deliberations with State and Federal governments, the VTA has consistently advocated for any increase to the road user charge to be kept to a minimum, in consideration of the significant increase in diesel costs due to inflationary and supply chain pressures, as well as ongoing conflict in Eastern Europe.”