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Huge impact for Gippsland owner operator transport businesses expected as tax increases on trucks not ruled out

Gippsland transport businesses will face increased costs and reduced profitability if the federal government increases taxes on truckies across Australia, according to local MP Darren Chester.

By news@gippsland - 9th March 2023 - Back to News

The Federal Member for Gippsland said the Labor Party had refused to rule out a proposed increase to the heavy vehicle road user charge which would impact every owner operator and transport business in Gippsland. Mr Chester said Minister for Transport Catherine King had failed to rule out tax increases when speaking in Federal Parliament this week.

Local MP Darren Chester said the Labor Party refused to rule out a proposed increase to heavy vehicle road user charge which would impact every owner operator and transport business in Gippsland

Tax increase affects the truckies

Mr Chester said, "The Minister was asked directly about the proposed 10 percent increase each year to the heavy vehicle road user charge and she would not give any reassurance that truck drivers wouldn't be affected."

"A tax increase in the current economic environment would be devastating for local transport businesses. Every product we consume leaves a farm on a truck and arrives at our shops on a truck, and they are already dealing with the increased costs of fuel, maintenance and insurance."

The Minister has confirmed the Federal Labor government is considering an increase to the heavy vehicle road user charges on fuel and truck registration costs by up to 10 percent annually over the next three years. "The proposed increase would see truckies pay up to 36.2 cents per litre of tax from the current 27.2 cents according to the National Transport Commission." Mr Chester said.

Driving up cost of living

Mr Chester said, "The proposed 'truckie taxes' will only drive up the cost of living pressures on families and also put more businesses at risk of not being able to continue operation and closing their doors."

"Every single submission to the consultation process has rejected the proposal including submissions from the Australian Trucking Association and the National Farmers Federation."

"The Minister needs to listen to the industry and not place further inflationary taxes on truckies which will only drive up the cost of living even further." Mr Chester said.

Pictures from Darren Chester MP website.

Source: http://gippsland.com/

Published by: news@gippsland.com