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CUMMINS – ALRTA NATIONAL PARTNER
FEDERAL BUDGET 2022-23
ALRTA Executive Director, Mat Munro, attended a dinner event at Australian Parliament House this week to hear details about the Federal Budget 2022-23. Delivered before an imminent Federal Election announcement, the Budget was always going to be aimed at addressing issues of interest to voters – especially in regional areas.
Federal Treasurer Josh Frydenberg explains budget measures.
The macro-economic picture is strong. Our economy is growing faster than our peers with an expected GDP increase this year of 10.75 per cent. Since December 2021, the Budget’s underlying cash balance has improved $103.6 billion.
Unemployment is now at 4 percent and expected to reach 3.75 per cent later in the year. While this sounds like good news, it also means skills shortages and labour force gaps that will need to be addressed. It also means inflation is likely to peak around 4.25 per cent.
Key highlights include:
- Fuel excise halved for six months.
- A one-off $420 tax off-set for 10 million Australians.
- A one-off $250 payment to 6 million Australians.
- Cheaper medicines for 2.4 million Australians.
- $9.9b for cyber-security.
- 35,000 more apprenticeships and 800,000 trainee places.
- Tax deductions for businesses investing in training and cybersecurity.
- $120b for infrastructure – including a QLD inland freight route and upgrading the Outback Way.
- $480m to upgrade NBN in regional Australia.
- $1.3b to improve mobile coverage in regional areas.
- $1.3b for women’s safety and security.
- $2b for housing assistance.
- Supply chain resilience measures, including urea production for Adblue.
- Tax deductible RATs from 1 July 2022.
- Lower PAYG and GST tax instalments.
Mat Munro catches up with Senator Susan McDonald on Budget night.
Impact of Fuel Excise Cut on Transport Operators
The 2022-23 budget announces a 22.1 cents per litre reduction in fuel duty. It has been halved from 44.2 cents per litre to 22.1 cents per litre.
The reduction in fuel duty took effect at 12.01am on Wednesday 30 March 2022. It will end at 11.59am on 28 September 2022.
In relation to their on-road fuel use, the effective reduction for trucking businesses is 4.3 cents per litre not 22.1 cents per litre.
This is because trucking businesses paid an effective fuel duty rate of 26.4 cents per litre. This rate, known as the road user charge, is set by the government and determines the fuel tax credits that trucking businesses normally receive.
Trucking businesses will not receive fuel tax credits for their on-road fuel use during the period of the temporary reduction.
Instead, trucking businesses will pay fuel duty at 22.1 cents per litre, which is 4.3 cents per litre less than the road user charge.
Trucking businesses will need to consider the cashflow implications of paying fuel duty at a lower rate, rather than receiving a fuel tax credit on their monthly or quarterly BAS.
Trucking businesses will still be able to claim fuel tax credits for their off-road/auxiliary fuel use, but the claim will be at 22.1 cents per litre not 44.2 cents per litre.
Click here for more information.
While ALRTA is appreciative of the Federal Government’s efforts to provide some relief from fuel costs, we have also heard concerns from some operators that the architecture of the relief model may cause problems with cashflow and contracts specifying fuel levies. If you are expecting issues to arise in your business, please send examples to:firstname.lastname@example.orgWe will take your concerns to government.
For more information about infrastructure funding in your jurisdiction, just click on the links below:
National investment – Click here to view.
NSW – Click here to view.
Victoria – Click here to view.
Queensland – Click here to view.
Western Australia – Click here to view.
South Australia – Click here to view.
Tasmania – Click here to view.
Northern Territory – Click here to view.
Australian Capital Territory – Click here to view.
LOWER CHARGING INCREASE SOUGHT
The ALRTA has responded to the NTC’s Heavy Vehicle Charges Consultation Report. ALRTA does not support the Infrastructure and Transport Ministers Meeting’s proposal to increase heavy vehicle registration and Road User Charges by 2.75 per cent in 2022-23. ALRTA has recommended a lower increase of 2.5 per cent.
ALRTA has further recommended that:
- Australian Governments be required to consult with peak road freight associations about the nature and quality of regional roadworks funded by heavy vehicle charges.
- Australian governments accelerate work on multi-year price pathing scenarios, aiming to return to fair cost recovery in a reasonable period without threatening the viability of road transport businesses.
ALRTA continues to believe in the long-standing principle of fair cost recovery via PAYGO. However, we consider that an increase of 2.75 per cent would be excessive in the current economic circumstances.
A 2.5 per cent increase was previously flagged by governments and agreed by industry more than twelve months ago. The vast majority of road transport businesses would be anticipating and able to adapt to an increase in heavy vehicle charges at this level. Delaying the charging increase would mean far steeper increases would be necessary in future years. A smooth transition back to fair cost recovery is imperative.
SUPPLY CHAIN RESILIENCE
ALRTA attended a briefing on the review of Australia’s Road and Rail Supply Chain Resilience. Given that Northern NSW is currently experiencing yet another flood event, the importance of this work cannot be overstated.
This review will identify the supply chains that are most critical to Australian communities and businesses, the risks they face, and a stocktake of any work underway to mitigate risks. This work will help to inform action by government on how to effectively and efficiently mitigate risks in supply chains for the benefit of all Australians.
LOOKING FOR FLEXIBLE FATIGUE OPTIONS?
The next round of the popular Fatigue Choices program is now open to operators who wish to learn more about flexible fatigue management options for their business.
The program includes free, one-on-one consultations where operators can discuss their fatigue management options with a member of the NHVR’s Fatigue and Human Factors team.
NHVR Fatigue Specialist Andreas Blahous said the program would help operators ensure their business was making the most of existing fatigue laws.
“With revised Fatigue Management Standards now in place, it’s a perfect opportunity for operators to consider Advanced Fatigue Management to achieve greater flexibility with work and rest hours,” Andreas said.
“Applying for AFM doesn’t have to be a difficult process, but it does require a commitment by the business and staff to some additional safety measures.
“Our Fatigue Choices sessions are conducted online, take less than an hour, and there’s nothing operators need to do to prepare.”
Sessions will be available until the end of April and book out quickly, so please register your interest here.
FREE WEBINAR: LUMPY SKIN DISEASE
Lumpy skin disease (LSD) is a viral disease of cattle and water buffalo that causes relatively low mortality; however, the disease can result in animal welfare issues and significant production losses.
The disease is spread primarily by biting insects such as certain species of flies, mosquitoes and possibly ticks. The disease can also be spread by fomites through such things as contaminated equipment and in some cases directly from animal to animal. It does not pose a risk to human health.
Infection typically causes an acute disease with fever, depression, and characteristic skin nodules. There may also be a marked reduction in milk yield as well as abortion in pregnant animals.
Originally limited to Africa, the global distribution of LSD is increasing the risk to Australia. Since 2019, the disease has spread through China and Southeast Asia. In 2021 the disease was confirmed in Vietnam, Thailand and Malaysia. In March 2022 it was officially reported by Indonesia on the island of Sumatra.
On Monday, 11 April at 1pm-2.30pm (AEST), the Australian Government Department of Agriculture, Water and the Environment will host a webinar special: Lumpy skin disease (LSD) – what you need to know about this emerging biosecurity threat.
Click this registration link to participate.
ALRTA COUNCIL NEXT WEEK
ALRTA National Council will meet via video link on Friday 8 April 2022. For more information contact Office@alrta.org.au
SAVE THE DATES FOR 2022
LBRCA (NSW) -26 -28 May 2022 – Wagga Wagga NSW – Information & Registration
LRTASA (SA) -17-18 June 2022 – Adelaide SA – Registration
ALRTA/LRTAV National Combined Conference -12-13 August 2022 – All Seasons Bendigo VIC – Information
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