etruck.com.au

Tax reform is now on the agenda, big-time. With the release of the Henry Report in the last few days all the headlines have been grabbed by the proposed changes to the way the resources industry will be taxed. As to the way in which the plans for a future tax system will affect road transport, it is quite difficult, at this early stage, to clearly see what kind of animal we will be dealing with.

It is clear from the statements, so far, there is little chance of all of the taxation the trucking industry pays being loaded onto fuel tax, the industry’s current position. The emphasis seems to be in creating a system in which the road user pays for the kilometres they travel with a particular type of truck at a particular mass. This is obviously going to be a complex reform to make and is unlikely to be finalised any time soon. It is likely we will have to wait for the technology and computer systems to levy this kind of taxation before it becomes clear.

“What Ken Henry had outlined for the transport sector in this review really is a revolution, delivered in stages over several years,” said Australian Livestock Transporters Association CEO Philip Halton this week. “He’s put big questions on the table. There is now only real challenge for their leaders in our industry, and the customers we work for.”

This is the new challenge to the trucking industry over the next five years. We are facing a major restructure of the way revenue is raised from business activity in trucking. It was only just over a decade ago when the industry as a whole had to fight tooth and nail to stop the GST kicking a hole in productivity and profits.

There is no time for endless circular debates within the industry and the industry associations as to what is to be done. The entire trucking industry needs to get together and come up with a position. This position needs to be clear cut and simple. If the industry does not speak with one single clear voice about our needs and how we can help to develop the new taxation regime then we will lose control of the process.

Trucking has a lot to offer, in terms of productivity improvements and efficient use of the current resources in terms of both rolling stock and infrastructure, if the taxation is pitched in the correct way hen the incentives will drive improvements throughout an industry which is core to the development of the Australian economy.

The industry should be looking to its leaders to take stock now, bury the hatchet over some of their differences and get on with the job of making sure road transport is not stifled by an inappropriate, badly judged and anti-trucking taxation regime.