Transport industry groups are warning that a proposed increase to the Heavy Vehicle Road User Charge for 2026–27 would raise costs for trucking operators and ultimately for Australian households. The National Road Transport Association, known as NatRoad, and the Australian Trucking Association have both lodged formal objections to a suggested 6 per cent rise, arguing it is above inflation and would worsen pressure on an already strained sector.
What is being proposed
The proposal under review would lift the diesel component of the Heavy Vehicle Road User Charge from 32.4 cents to 34.3 cents per litre for the 2026–27 year, an increase of roughly 6 per cent. NatRoad and the ATA say this would mark a fourth consecutive year of similar increases, and they argue that the compounded effect is becoming unsustainable for many operators.
Both bodies have made submissions opposing the size of the hike. NatRoad has asked that any increase be capped at inflation for 2026–27, while the ATA has recommended a more moderate ceiling of 4 per cent. The ATA also called for broader supply-side reforms and staged improvements to the Heavy Vehicle National Law as part of a fairer long-term approach.
How industry groups say it will affect businesses
NatRoad has told regulators that trucking businesses are already squeezed by multiple cost pressures, including rising insurance premiums, higher Workcover costs, and more expensive parts and maintenance. The peak body estimated that, for a heavy vehicle operator consuming 100,000 litres a year, the proposed rise would translate into about $2,000 in extra diesel charges annually on top of those other increases.
NatRoad highlighted that many owner-operators work with profit margins below three per cent and often lack cash reserves, so additional mandatory costs could force some small operators to cease trading. The association warned that business failures would reduce competition, particularly in regional areas, and lead to longer delivery times and higher prices for consumers.
The ATA said recent years have already seen extreme financial and operational pressures across the industry. The association pointed to record insolvency rates in 2025, with one in every 12 road transport businesses closing, and it argued that repeated large increases in charges have contributed to that outcome. The ATA described the industry as reaching a breaking point and said it cannot absorb another steep rise.
