Developing an implementable forward-looking cost base

Public consultation is now open on the Implementing a forward-looking cost base for heavy vehicle charges – Consultation Regulatory Impact Statement (C-RIS).

The consultation seeks feedback on a proposed forward-looking cost base model and a range of implementation options that could be used to set heavy vehicle charges from 2027–28 onwards, subject to ministerial approval.

During consultation, the NTC will run information sessions to provide an overview of the proposed model and implementation options. Supporting materials are available to help stakeholders understand the proposed model and implementation options.

You can register for upcoming information sessions and view our support materials below.

Consultation closes on Thursday, 21 May  2026.

 

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.

The forward-looking cost base is an alternative to the current PAYGO (pay-as-you-go) approach for setting heavy vehicle charges. Under PAYGO, significant increases in government road expenditure have led to growth in the heavy vehicle cost base, while charges have not kept pace - resulting in an increasing gap between costs and revenue.

The FLCB addresses these issues by spreading the cost of road construction and maintenance over the life of road assets, aligning more closely with approaches used in other regulated infrastructure sectors. 

This approach is intended to improve the stability and predictability of heavy vehicle charges, and better align charges with long-term investment in the road network.

If endorsed by ministers, the model could form the basis for setting heavy vehicle charges from 2027–28 onwards.
 

As part of this work, we have published the Consultation Regulatory Impact Statement to seek stakeholder feedback on options in developing an implementable forward-looking cost base.

The consultation seeks feedback on:

• the overall design of the FLCB model, including the starting point,
• any advantages and disadvantages of the proposed implementation options,
• industry affordability and impacts on government revenue needs, and
• any alternative options or issues stakeholders believe should be considered.

In addition to the C-RIS, the following support materials have been developed to assist stakeholders in providing their feedback:

• C-RIS Overview
  • Short overview document summarising the C-RIS
• FLCB model and calculation of usage data
  • Excel workbooks
• Summary spreadsheets of C-RIS tables
  • Provides the calculations behind the tables and graphs within the C-RIS
• Cost of Capital and Inflation review – final report
  • Appendix B of the FLCB C-RIS.
• Expenditure Reporting Guidelines
  • Appendix D of the FLCB C-RIS.

An online interactive module is available at the bottom of this page to help users estimate annual charges under the options presented in the C-RIS. 

To provide your feedback, see ‘Have your say’ below. 

Consultation closes on Thursday, 21 May 2026.
 

You can take part in the consultation by:

• Attending an in-person or online information session.
• Preparing and uploading a submission in response to the FLCB C-RIS.

Register for an in-person information session

The NTC intends to meet industry stakeholders in all Australian states and territories during public consultation. Stakeholders can register for upcoming sessions by the below links. As more dates are confirmed across the country, they will be added here. 

• Darwin, NT - Wednesday 18 March 2026, between 1:00pm and 3:30pm

Register for an online information session

To register for a session, click on the relevant link below. All times are listed in AEDT.

• Friday 20 March 2026 – 2:00 pm to 3:00 pm
• Wednesday 8 April 2026 – 2:00 pm to 3:00 pm
• Monday 13 April 2026 – 3:00 pm to 4:00 pm

Webinars will be recorded and uploaded here shortly afterwards, for anyone unable to attend any session.

The model has been designed to be robust and to produce outcomes that, over the long term, are broadly comparable to those under the existing PAYGO methodology, while addressing key shortcomings such as volatility and departures from full cost recovery.

The model design and assumptions were tested with industry and government working groups prior to public consultation.

The NTC will consider feedback received through the consultation and use it to inform the final FLCB and our recommendations for heavy vehicle charges from 2027-28 onwards.

The recommendations will be presented in a decision regulation impact statement to infrastructure and transport ministers in late 2026.

The forward-looking cost base will only be used to set heavy vehicle charges from 2027–28 onwards if ministers fully endorse the model and decide to adopt it.

If you'd like to express interest in this project, or ask us a question about our work, send us an email as we'd like to hear from you.