Heavy vehicle charges determination

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Help us to review the method used to set heavy vehicle charges. This is also known as the ‘pay as you go’ model, or PAYGO. 

Your input will help us shape the advice we share with transport ministers later this year. 

Two trucks on road

Project background

Anyone who owns a heavy vehicle that uses Australian roads pays a vehicle registration fee. Heavy vehicle operators also pay a road user charge on diesel fuel.  

The charges are set to ensure that those vehicles that cause more wear and tear on our roads, or those that travel further, pay more.  

State and territory governments use this money to recover what they spend to maintain and improve roads for heavy vehicles. The NTC advises transport ministers on these charges.  

Through our review of PAYGO, we will explore if the method we currently use to calculate charges is still fit for purpose. We’ll also explore how possible changes could be implemented.  

Following this work, changes to the PAYGO model and new heavy vehicle charges may come into effect from the 2022–23 financial year.  

Why are we reviewing PAYGO?

The PAYGO model was introduced in 1992. Transport ministers ask the NTC to review the model about once every five years.  

The process of reviewing how charges are set is called a determination. Typically, a determination will develop multiple options and implementation scenarios for ministers to choose from.  

The last determination was done over seven years ago. Since then, important factors such as distances travelled, and the weight of trucks have changed.  

How to participate

We have completed the research and investigation to identify a number of possible changes to the PAYGO model. Now, we need your help to explore the recommended technical changes, cost allocation options and how they could be implemented. 

Join us online to explore and test these possible changes to PAYGO. We’ll share more about how charges are calculated now, and the details of what might change.  

Here’s how to get involved:  

  • Answer the questions via our online form or prepare and upload a submission in response to the RIS. Respond to some or all of the consultation questions, based on which topics are most important to you.  

Share your input on possible changes by Tuesday 24 August 2021.  

What happens next?

We’ll present recommendations to transport ministers in November this year. They will select a preferred option. After that, there will be further consultation on the preferred option.  

We’ll provide updates when they’re available on this page.

Timeline

January 2020
Researching
April 2020
Analysing issues
April 2021
Developing options
June 2021
Consulting on options
August 2021
Preparing recommendations for ministers
November 2021
Delivering advice to ministers
December 2021
Consulting on options
February 2022
Delivering recommendations to ministers
February 2022
Assisting implementation

Contact us

Project manager Ramon Staheli
Contact email rstaheli@ntc.gov.au