THE Victorian Transport Association says the government’s decision not to proceed with a proposed increase to the road user charge will spare thousands of transport operators around Australia from higher fuel taxes.

The decision was announced by Deputy Prime Minister Michael McCormack and Assistant road minister for freight Scott Buchholz and follows months of advocacy work and direct representation by the VTA and other peak industry groups to the Transport Industry Council that the industry could not wear higher taxes at this time.

“We applaud this common-sense decision by the Commonwealth to cancel its proposed increase to the road user charge, which will relieve pressure on transport operators that have already been hit hard by the economic impacts of COVID-19 on the industry and the broader economy,” said VTA CEO Peter Anderson.

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“The Commonwealth government and transport ministers in every state and territory have listened in good faith to the concerns of the industry about what higher taxes would mean and we thank them for putting the economic interests of transport operators ahead of the needs of treasury,” he said.

Had the tax increase proceeded, operators would have been facing an increase of the road user charge by 2.5% from 1 July 2020 and another 2.5% from 1 July 2021.

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