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LIVESTOCK transporters have cautiously welcomed the Albanese Government’s plan to gradually walk but its cuts to the fuel excise and heavy vehicle road user charge.

The Government’s 32c cut to the fuel excise that was made in May is set to end next week and pressure was on to make a plan while tensions persist in the Middle East.

The plan was released on the weekend, with the Government planning to reduce the cut to the excise for diesel and petrol to 16c for July, before the full tax comes back into play at the start of August.

Prior the cuts, transporters were on a different system called the Heavy Vehicle Road User charge, which was 32c. Transporters would pay the 52.6c excise at the bowser and then claim the 20c difference at tax time. The road user charge was waved under the Government’s original measures May.

The road user charge will go back to 16c in August and, by the end of the month, all taxes are set to be back to where they were before the war.

In its statement, the Government said petrol prices at the bowser were 90c/litre lower and diesel prices in most capital cities are around 100/L lower. A look at the Australian Institute of Petroleum’s website has the national average of diesel prices at 198c/L.

Anthony Boyle

By ratcheting up the fuel excise and the heavy vehicle road user charge over two months, the Government is hoping to avoid a sudden jump in prices and manage demand at the bowsers.

Australian Livestock and Rural Transporters Association executive director Anthony Boyle said the organisation generally supported the plan.

“We asked for a staggered approach, we asked for that to be over three months and the Government has done it over two months,” Mr Boyle said.

“That is alright, I think we can count that as a small win.”

Mr Boyle said if wholesale fuel prices were stable, the walk back of the excise cut would increase freight rates by about five percent. But if fuel prices kept dropping, there could be no impact at all.

Commending the Government

While there was some concern about the Government’s handling of the fuel crisis and the Middle East conflict initially, Mr Boyle commended the Government on its overall handling of the situation in recent months.

“While we didn’t agree with some of their measures as the best way forward, they did give support for businesses with cash flow problems and overall, they addressed the concerns we raised,” he said.

“Everyone can be critical, but overall, they have done what they could with what they had their disposal by doing things like acting quickly on the fuel excise.”

Never waste a good crisis

Mr Boyle said the fuel crisis in recent months has shone a light on the importance of the diesel-fuelled transport industry. He said the association has been able to raise issues that it would ordinarily struggle to put on the Government’s agenda.

“I think people are realising that we are a diesel nation and this electric vehicle shift is not going to float the boat just yet,” he said.

“It is good that we are still able to operate from that essential service level. Things like this and covid remind people that the supermarket shelves don’t fill themselves.”

Tensions keep flaring in the Middle East

A big part of the Government’s plan will hinge on oil and refined fuel prices returning to a normal level, with peace talks in the Middle East still ongoing.

According to several news outlets United States president Donald Trump has threatened to resume bombing as Iran saying they will close the Strait of Hormuz.

US vice-president JD Vance is in Switzerland for peace deal negotiations this week.