Heavy Vehicle Charges Determination

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.

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'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.

Email the project team with questions

Submissions we received

Heavy vehicle charges determination 2021- regulation impact statement

Published on 28 Jun 2021

Regulation Impact Statement (RIS)

PAYGO model and charges calculator

Consultant reports

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.

Read the high-level presentation

In-depth presentation and discussion (180 minutes)

These sessions provided an in-depth dive into technical concepts in the RIS.

Read the in-depth presentation

Timeline

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

Contact us

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