The Commonwealth Government has introduced legislative changes to help transport operators respond more quickly to rising fuel costs, with the Victorian Transport Association (VTA) welcoming the move.
Announced on 23 March 2026, the reforms will amend the Fair Work Act to allow transport operators to make emergency applications for contract chain orders, enabling faster adjustments to contract terms in response to fuel price volatility.
Under current arrangements, operators must wait a minimum of six months before such orders can take effect. The changes remove this delay, allowing the Fair Work Commission to require transport clients, including retailers, miners and manufacturers, to offer fairer terms that reflect rapidly increasing fuel costs.
VTA CEO Peter Anderson says the reforms provide a necessary mechanism for operators facing unpredictable cost pressures.
“The VTA strongly supports the Government’s commitment to ensuring fuel cost shocks are shared fairly along the supply chain. For years, we have emphasised that fuel is one of the most significant and unpredictable operating expenses in road transport. When prices spike suddenly, operators simply cannot shoulder these increases alone,” says Peter.
He says the ability to seek urgent relief is critical during periods of global fuel volatility.
“This announcement gives freight and logistics businesses the ability to seek urgent relief when global events cause unsustainable price surges. It reinforces a principle we have long advocated, that transport contracts must enable operators to recover genuine cost movements in real time.”
Peter adds that the reforms recognise the essential role of transport operators in maintaining supply chain continuity.
“Every product Australians rely on moves at some point on heavy vehicles. Without mechanisms to pass rising fuel and operational costs through the supply chain, our capacity to keep freight moving is compromised,” he says.
The VTA says it will work with government, the Fair Work Commission and industry stakeholders to support implementation of the new emergency application process.
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