Transport leaders are calling for urgent financial relief measures for heavy vehicle operators, warning that rising fuel prices are creating a mounting cashflow crisis across the industry.
The Australian Livestock and Rural Transporters Association (ALRTA) said while recent government measures, including a further 5.7 cents per litre cut to fuel excise, were a constructive step, they would not deliver meaningful relief for truck operators.
ALRTA President Gerard Johnson said the latest excise reduction effectively offsets earlier changes to the Heavy Vehicle Road User Charge and does little to ease the real pressures facing the sector.
“We acknowledge the Government is acting and we welcome that, but for truck operators, this latest change doesn’t materially shift the dial, it just stops things getting worse,” Mr Johnson said.
Instead, the industry says the immediate issue is not just the price of fuel, but the cash required to access it. Diesel prices have surged from around $1.70 per litre to approximately $3.00 in the space of a month, dramatically increasing the working capital needed to keep trucks on the road.
Fuel purchasing arrangements are typically based on credit limits in dollar terms, meaning operators can buy less fuel as prices rise, even if their operational needs remain unchanged.
“The issue right now isn’t just price, it’s cashflow,” Mr Johnson said.
“Operators are having to find significantly more cash upfront just to keep trucks moving, and that pressure is building quickly.”
While the Federal Government has also introduced broader measures, including fuel supply support and access to low-cost loans, industry groups say loans alone are not a long-term solution.
“Low-cost loans provide short-term flexibility, but they also mean operators are borrowing money to continue operating,” Mr Johnson said.
In response, ALRTA has joined with NatRoad and the Australian Trucking Association in calling for a coordinated six-month moratorium on heavy vehicle equipment finance repayments.
The proposal would allow eligible operators to defer principal repayments on truck and trailer finance for up to six months, with repayments added to the end of the loan or spread across the remaining term.
Importantly, the model would not classify deferred loans as defaults, protecting operators’ credit ratings and avoiding additional regulatory penalties for lenders.
The industry says the approach could be implemented quickly without new legislation or direct government funding, relying instead on coordination between government, regulators and financial institutions.
“This is a proven solution that can be implemented quickly and at no cost to government. We’re aligned as an industry on this. This type of support will make a real difference on the ground,” Mr Johnson said.
The proposed moratorium would be targeted at otherwise viable businesses that are currently meeting repayment obligations but are facing temporary pressure due to rising fuel costs.
Industry leaders say the measure would allow operators to redirect cash normally used for loan repayments towards fuel and day-to-day operating expenses, helping maintain freight movements during the peak of the crisis.
“If operators can see consistent fuel supply returning, panic demand will ease and prices will stabilise,” Mr Johnson said.
“Truck operators are doing everything they can to keep turning up and doing the job. Supporting their cashflow is critical to keeping supply chains moving.”
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