Announcement date
8 May 2023
Link to announcement
https://www.infrastructure.gov.au/sites/default/files/documents/ITMM%20communique%20RUC%20%28004%29.docx
Problem being addressed
The heavy vehicle cost base has increased and is expected to exceed the heavy vehicle charges revenue, leaving an expected revenue gap, including a gap of $575.8 million in 2022-23. This means that charges do not fully recover the share of road construction and maintenance costs that can be allocated to heavy vehicles.
Proposal
The decision regulation impact statement outlines a range of options for setting heavy vehicle charges that would apply from 2022–23 onwards. At the December 2021 Infrastructure and Transport Ministers Meeting (ITMM), ministers identified a preference for increasing heavy vehicle charges by 2.75 per cent in 2022-23. At the same meeting, ministers also decided that they would again consider heavy vehicle charges in late 2022, including the possibility of a multi-year price path. The supplementary paper to the Decision RIS outlines options for setting heavy vehicle charges from 2023-24 onwards for consideration by ministers. At the April 2023 ITMM, ministers agreed to a proposal to set charges for a three-year period, rising by six per cent each year.
Assessed Impact Analysis outcome
Compliant