Truck owners are now invited to have their say on a proposed new forward-looking cost base (FLCB) model for heavy vehicle charges.
The FLCB system could replace the long-running pay-as-you-go (PAYGO) model from 2027-28 onwards, if transport ministers sign off later this year.
Public consultation on the Consultation Regulatory Impact Statement (C-RIS) is now open and runs until May 21, 2026. Click here to make your submission.
The National Transport Commission (NTC) is calling for feedback on the overall design of the FLCB model, the potential advantages and disadvantages of various implementation options, impacts on government revenue and affordability for industry, and any alternative approaches stakeholders think should be considered.
While straightforward in principle, the NTC said PAYGO has struggled to keep pace with rapidly rising road expenditure, leaving a widening gap between the heavy vehicle cost base and revenue collected through the road user charge and truck registration charges.
The 108-page C-RIS [click image above to read] seeks feedback on a range of options for developing and implementing the proposed new model. Image: NTCThe FLCB is an alternative approach that spreads the cost of road construction and maintenance over the useful life of assets, rather than attempting to recover the full cost in the year the expenditure occurs, the NTC added.
It works by calculating a government’s required revenue through three key building blocks: depreciation of infrastructure, a return on capital, and ongoing operational and maintenance costs.
By forecasting future expenditure and smoothing recovery over time, the model is expected to reduce year-to-year volatility and provide industry with greater predictability in charges.
Because FLCB smooths costs over time, it could show a lower year-to-year charge recommendation than a volatile PAYGO estimate would, especially in years with big road spending.
In theory that could reduce year-on-year jumps. But if overall costs are high or governments want to recover more of the road spend from heavy vehicles, the resulting recommended charges could still be higher than what operators pay today
Queensland Trucking Association CEO Gary Mahon hadn’t made a submission when contacted by Big Rigs but shared his reservations about the merits of changing the system.
“Given the pressures on the industry at the moment, and the ever increasing freight task, the ever increasing push to go below cost for freight rates, I think it’s unfortunate that the government thinks this is a sustainable approach.
“It’s not a sustainable approach and government needs to take a more considered view about the sustainability of the industry.”
Mahon said the government also appears to be intent on progressively eliminating the fuel tax credits for operators.
“For the industry that’s an unsustainable circumstance, especially given all of the pressures on the industry from a whole variety of different perspectives.”
The NTC is also holding a series online information sessions on the proposed FLCB model.
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.
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