Truck companies in Australia have warned of an 'imminent collapse' of the nation's supply chain, claiming the fuel excise cut intended to ease the cost of living is forcing them off the road. The cut, introduced by former Prime Minister Scott Morrison in March after Russia's invasion of Ukraine, halved the fuel excise tax, but truck operators say they have been disproportionately affected.
According to the South Australian Road Transport Association, 57 per cent of the state's truck companies face bankruptcy due to the policy. Chief executive Steve Shearer described the decision as 'disastrous', noting that truck drivers only see a 4.3 cent cut per litre in diesel costs compared to the 22.1 cent cut enjoyed by other motorists.
Under the policy, truck companies lost their fuel tax credit, a rebate they relied on to offset quarterly tax obligations. Shearer said the loss of credits, which range from $2,000 to over $150,000 per quarter, is unsustainable. 'No business can sustain the loss of such a significant portion of their funds,' he said.
The association warned of empty shelves if truck companies collapse, as they are essential for transporting food and products. Shearer called on the new Labor government to restore the tax credit from July 1, estimating the cost at $350 million, which he said is 'a drop in the ocean' compared to the economic fallout of a supply chain collapse.
A national survey of truck companies is expected next week as the industry seeks government intervention.
