ALRTA President Gerard Johnson emphasised that while the excise reduction is a step in the right direction, it merely prevents conditions from worsening rather than providing substantial relief. The core issue lies in the cashflow challenges faced by operators, as diesel prices have surged from approximately $1.70 to $3.00 per litre within a month. This dramatic increase has significantly raised the working capital required to maintain operations.
In response, industry leaders are advocating for a coordinated six-month moratorium on heavy vehicle equipment finance repayments. This proposal aims to allow eligible operators to defer principal repayments on truck and trailer finance, thereby redirecting funds towards fuel and daily operating expenses. Such a measure is seen as crucial to maintaining freight movements and ensuring the stability of supply chains during this crisis.
The proposed moratorium would be targeted at viable businesses currently meeting repayment obligations but facing temporary financial pressure due to rising fuel costs. By implementing this support, the industry hopes to alleviate immediate cashflow concerns and sustain operations through the peak of the fuel crisis.
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
