FREIGHT costs and grocery prices would not be affected by the Government's decision to reintroduce fuel tax indexation, according to the Australian Trucking Association.
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This week's budget saw the Government announce the fuel tax rate would increase twice a year in line with inflation, starting on August 1. The fuel tax rate had been frozen at 38.143 cents per litre since 2001.
The Association's Stuart St Clair said the net fuel price trucking operators paid would not be affected because of the fuel tax credits system, where businesses claim fuel tax credits for each litre of fuel they buy for use in trucks that meet one of four environmental criteria.
He also welcomed a decision not to change the fuel tax credits system.
"“Businesses can claim for the full amount of tax they paid on the fuel when they bought it, minus the road user charge, currently 26.14 cents per litre," he said.
"As a result, the twice-yearly indexation of the fuel tax rate will result in matching increases in the fuel tax credits operators can claim.”"
He said the Government’'s infrastructure investment package would deliver the roads the trucking industry would need to do their job as the economy grew.
"“Australia’'s road freight will almost double by 2030," he said.
"The Government’'s investment will make the roads safer and deliver improved productivity."
Dubbo transport industry representative stalwart and National Road Transport Operators (NATROAD) national council member John Morris welcomed the Government's pledge to invest in roads and infrastructure.
"It's the best news we've heard in 20 years," he said.
"In the past, our problem was getting that fuel excise money from consolidated revenue to be put into roads.
"Labor has traditionally spent on people, which is their culture, but those people ended up going and buying things like flat screen TVs with that money.
"Harvey Norman did well. But someone has to pay for that, eventually."
Mr Morris hoped plans for infrastructure spending might bring more certainty to follow through with plans to run freight corridors around Dubbo and Parkes.
"Because even if they (councils) decide to put pegs in the ground now it could take 10 years for funding for that to come through," Mr Morris said.
Investment in roads and infrastructure was needed in the local region, Mr Morris said, to pave the way for a predicted increase in mining and other developing activity in Dubbo and the surrounding district.
"In another 50 years mining in this region will be like central Queensland, there is so much mineral wealth around this town and the region," he said.
And spending on rail infrastructure would be needed to support that, he said, especially the inland rail corridor from Melbourne to Brisbane.
"Everyone's against doubling the number of trucks on the Newell Highway, we're battling that negativity every day," Mr Morris said.
Mr Morris said the SCT Logistics hub in Parkes, which incorporated rail, was a good example of transport intermodal infrastructure that worked.
"Rail will be a huge part of shifting the increasing freight task in 25 years, we're looking to rail, we don't want any more trucks on the roads unless the roads are seriously upgraded.
"You've only got to see the way some of the mining companies in Queensland are building their own rail lines."