We’re reviewing the method used to set heavy vehicle charges. This is also known as the ‘pay as you go’ model, or PAYGO.
January 2022 update
We provided several recommendations and the Regulation Impact Statement (RIS) to ministers for consideration in December 2021.
Ministers decided to engage industry on a 2.75 per cent increase to heavy vehicle charges for 2022-23 only. They will revisit the determination later in 2022, and will consider:
- implementation options
- possibility of multi-year charge setting
- other technical recommendations outlined in the RIS.
Updates will be provided on this page as they become available.
Have your say and learn more about the proposed heavy vehicle charges increase in 2022-23.
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're exploring if the method we currently use to calculate charges is still fit for purpose. We’re also looking at how possible changes could be implemented.
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
Public consultation on the RIS concluded on 24 August, 2021.
This recent round of consultation invited the community to explore possible changes to PAYGO, and implementation options. We held information sessions, and accepted submissions in response to the RIS on this site.
We presented recommendations in consideration of your comments to transport ministers in late 2021.
Submissions we received
Heavy vehicle charges determination 2021- regulation impact statement
Regulation Impact Statement (RIS)
This Consultation RIS outlines our findings, draft recommendations, and questions that seek your views on various matters. Refer to it as you develop your submission.
This paper, released in April 2020, explains the scope of this determination. It summarises matters to be considered as part of the process, and those that are out of scope.
PAYGO model and charges calculator
This spreadsheet is the version of the PAYGO model used to calculate the Option B cost base and charges for the Consultation RIS.
This spreadsheet contains the heavy vehicle charges for the three options considered in chapter six of the RIS. Use it to understand how much you might pay under each option.
This document explains the methodology used by Pekol Traffic and Transport to update the ESA values used in the PAYGO model.
This document explains the methodology used by HoustonKemp to update the data for each cost category in the operator cost model.
This spreadsheet estimates the costs incurred by each heavy vehicle or vehicle combination in various cost categories.
Report into estimated pavement maintenance costs in Victoria for a forward looking cost base (FLCB) for heavy vehicles by ARRB, April 2019.
Findings of a cost allocation literature review by ARRB for Victorian Department of Treasury and Finance, December 2017. Does not represent the views of the Victorian Government.
Review of current PAYGO cost allocation parameters carried out by Houston Kemp, March 2017.
Information session presentations
We offered a series of online information sessions throughout July 2021. These workshops have now concluded - but we have included a copy of the presentations we used for your reference.
High-level overview and discussion (90 minutes)
These sessions provided a high-level overview of technical content in the RIS, with a focus on financial impacts for industry.
In-depth presentation and discussion (180 minutes)
These sessions provided an in-depth dive into technical concepts in the RIS.