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FACT SHEET
Vehicle and Traffic Amendment (Heavy Vehicle Charges) Bill 2016
The purpose of the Vehicle and Traffic Amendment (Heavy Vehicle Charges) Bill 2016 is to amend
the Vehicle and Traffic Act 1999 to effect the implementation of the Transport and
Infrastructure Council’s decision of 6 November 2015 and to provide the ability for future
heavy vehicle charges to be set in subordinate legislation.
The Bill principally contains an updated schedule of nationally consistent vehicle charges
applicable to heavy vehicles, which are defined as those with a Gross Vehicle Mass (GVM)
more than 4.5 tonnes and includes trucks, prime movers, trailers, buses and special purpose
vehicles. This is consistent with the State’s obligations under the Inter-Governmental
Agreement for Regulatory and Operational Reform in Road, Rail and Intermodal Transport.
The national registration charges for heavy vehicle classes are periodically recommended by the
National Transport Commission (NTC) to reflect the estimated costs of the various heavy
vehicle classes to the road network in a Heavy Vehicle Pricing Determination. The charges are
set at levels to sustain the revenue base needed for governments to invest in road maintenance
and construction, including infrastructure upgrades needed for improved heavy vehicle access.
The Transport and Infrastructure Council directed the NTC to undertake a comprehensive
review of the heavy vehicle charging system and subsequently endorsed the NTC proceeding
with a Determination on the basis of its review recommendations.
The Heavy Vehicle National Law commenced on 10 February 2014, in all jurisdictions except
Western Australia and the Northern Territory, allowing the National Heavy Vehicle Regulator
(NHVR) to undertake a number of heavy vehicle regulatory functions previously undertaken by
jurisdictions. The intergovernmental agreement between the Commonwealth and States and
Territories provides that the ongoing costs of the Regulator are to be recovered from the
heavy vehicle industry.
The charges set by the Determination will implement cost recovery of the NHVR. This is
reflected in the Bill by the introduction of a two-part heavy vehicle registration charge (motor
tax) which comprises a road use charge to be retained by States and Territories, and a
regulatory component which will be collected by jurisdictions on behalf of the NHVR. The
regulatory component of the registration charges will replace Tasmania's payment to the
NHVR.
The amended charges will come into effect on 1 July 2016.
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