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The National Transport Commission (NTC) has opened public consultation on proposals to develop a forward-looking cost base (FLCB) for setting heavy vehicle charges in Australia.
The consultation is supported by a Consultation Regulatory Impact Statement (C-RIS), which sets out a proposed model and implementation options that could be used to set heavy vehicle charges from 2027–28 onwards, subject to ministerial approval.
The consultation is supported by a Consultation Regulatory Impact Statement (C-RIS), which sets out a proposed model and implementation options that could be used to set heavy vehicle charges from 2027–28 onwards, subject to ministerial approval.
Developing a forward-looking cost base
In May 2023, the Infrastructure and Transport Ministers’ Meeting (ITMM) approved heavy vehicle charges for 2023–24 to 2025–26. The process also identified opportunities to improve how charges are set.
Accordingly, ITMM asked the NTC to develop a FLCB, which could potentially provide a basis for setting future heavy vehicle charges.
Heavy vehicle charges are currently set using a cost recovery mechanism known as PAYGO (pay-as-you-go). In recent years, increases in government road expenditure have driven growth in the heavy vehicle cost base, while charges have not kept pace — resulting in a widening gap between costs and revenue under the PAYGO model.
The forward-looking cost base is an alternative approach that spreads the cost of road construction and maintenance over the life of road assets. This aligns more closely with other regulated infrastructure sectors and aims to improve stability, predictability and long-term cost recovery.
Consultation
As part of this work, we have published the C-RIS to seek stakeholder feedback on options for implementing a FLCB.
In support, the NTC has also published a range of supporting materials, including an overview of the C-RIS, the underlying model and an online module to help estimate annual charges under different options.
Have your say
We invite stakeholders to review the C-RIS and provide feedback on our website.
You can also register to attend one of our upcoming online information sessions, which will provide an overview of the C-RIS. Recordings will be made available on the NTC website afterwards.