However, the association says it is important to recognise that for heavy vehicle operators, this latest reduction delivers no real net benefit. The previous announcement to remove the Heavy Vehicle Road User Charge to zero effectively returned this equivalent value through fuel tax credits.
“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.” ALRTA president Gerard Johnson said.
The real challenge facing operators is not just the cost of fuel, but the cash required to access it.
The association said diesel prices have surged from about $1.70 per litre just a month ago to around $3.00, dramatically increasing the working capital required to operate trucks.
Fuel credit facilities are based on dollar limits, not volume. As prices rise, operators can purchase less fuel within existing credit arrangements, restricting their ability to operate.
“The issue right now isn’t just price, it’s cash flow. Operators are having to find significantly more cash upfront just to keep trucks moving, and that pressure is building quickly,” Mr Johnson said.
The Government’s broader response - including fuel supply measures and access to low-cost loans - is acknowledged as practical and well-intentioned. Although low-cost loans provide short-term flexibility, they also mean operators are borrowing money to continue operating.
ALRTA is joining NatRoad and the Australian Trucking Association (ATA) in calling for urgent engagement between government, regulators and lenders to implement a six-month moratorium on heavy vehicle equipment finance repayments, consistent with the successful COVID-19 model.
“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 model does not require new legislation or direct government funding. It operates through coordinated action between government, regulators and lenders:
- Repayment Deferral (Up to 6 Months): Eligible operators can pause principal repayments on truck and trailer finance for up to six months.
- Loan Term Extension: The deferred repayments are added to the end of the loan or spread across the remaining term, meaning the loan is extended - not cancelled.
- No Default Classification: Regulatory guidance (via APRA) ensures that loans under moratorium are not treated as defaults, protecting operators’ credit ratings and avoiding additional capital penalties for lenders.
- Targeted Eligibility: The measure is designed for otherwise viable businesses that are current on repayments but experiencing temporary cashflow pressure due to fuel cost increases - not for businesses already in financial distress.
- No Direct Cost to Government: This is a coordination measure. It relies on lender participation, supported by government leadership and regulatory settings, rather than taxpayer funding.
