Fortnightly ALC Government Relations Update No.11 | 11 June 2026 – 25 June 2026

The Federal Government has announced that fuel excise relief will be extended for a further month. The extension will apply from 1 July to 2 August 2026. Under the announcement, petrol and diesel will be 16 cents per litre cheaper than normal fuel excise settings for July. The Government has stated this will save Australians around $11 on a 65-litre tank of fuel. The Federal Government will also reduce the Heavy Vehicle Road User Charge by 16 cents for the same period. The estimated cost of the extension to fuel excise relief and the reduction in the Heavy Vehicle Road User Charge is approximately $400 million.

The Government said the measure is intended to provide temporary cost-of-living support as fuel price relief is tapered back toward normal settings. The Government also said it will seek support from states and territories at National Cabinet for July, noting that states and territories have used GST revenue to fund a 5.7 per cent portion of the fuel excise cut over the previous three months. The announcement follows the earlier three-month fuel excise cut introduced from 1 April to 30 June 2026, which reduced fuel excise by 32 cents per litre and reduced the Heavy Vehicle Road User Charge to zero. The Government said the extension reflects that fuel prices have moderated from recent peaks, but households and businesses remain under pressure.

The ACCC will continue monitoring fuel prices to support the pass-through of the lower excise rate at the bowser. The Government also pointed to broader fuel security and resilience measures introduced since the Middle East conflict began, including additional fuel supply and storage measures, increased minimum stockholding obligations, support for diesel and jet fuel reserves, ACCC enforcement measures, low-carbon liquid fuel support, and measures to assist transport and logistics businesses with fuel-related cost pressures.

Former Western Australian Government Minister Bill Johnston has been appointed as the new Chair of the Freight and Logistics Council of WA. The FLCWA advises the Western Australian Government on strategic freight and logistics issues and provides a formal channel for engagement between government and industry. Mr Johnston succeeds Megan McCracken, who had served as Chair since June 2021.

ALC members with operations or policy interests in Western Australia should note the appointment and consider opportunities to engage through ALC on shared priorities, including:

• freight productivity and network efficiency;
• port, road, freight rail and intermodal planning;
• supply chain resilience;
• workforce and industrial capability;
• decarbonisation and energy transition impacts on freight;
• long-term freight infrastructure coordination.

The National Heavy Vehicle Regulator has issued the National Class 2 Performance Based Standards (Tier 1) Authorisation Notice 2026 (No.1) under the Heavy Vehicle National Law.

The notice authorises eligible Performance Based Standards (PBS) Tier 1 Class 2 heavy vehicles to operate on specified networks, subject to vehicle approval, network access, mass, dimension, route and monitoring conditions. It revokes and replaces the 2022 PBS Tier 1 Authorisation Notice.

The notice commences on 17 June 2026 and expires on 26 October 2026. 

For operators, the practical effect is that eligible PBS vehicles with the required vehicle approval can continue to access nominated PBS networks across participating jurisdictions, provided they meet the conditions set out in the notice and the relevant jurisdictional schedules.

Key operating conditions include:

• Vehicles must hold a PBS vehicle approval and comply with that approval.
• Vehicles must not exceed the relevant Tier 1 Bridge Assessment mass
• limits.
• Total mass limits vary by PBS network level and, in some cases, by
• jurisdiction.
• Eligible vehicles must not exceed 4.6 metres in height.
• Maximum vehicle lengths range from 20 metres for PBS Level 1 to 53.5
• metres for PBS Level 4A.
• Quad axle group mass must not exceed 21 tonnes.

Vehicle approval must be carried and produced when required by an authorised officer.

The notice also confirms jurisdiction-specific access arrangements for the ACT,

New South Wales, South Australia, Tasmania and Victoria. These arrangements are not uniform. Operators will need to check the applicable PBS network, road conditions, travel conditions and vehicle conditions before operating. In New South Wales, eligible vehicles operating under the notice must also comply with approved intelligent transport system requirements. Vehicles operating up to GML or CML must be enrolled in Road Infrastructure Management, while vehicles operating above GML or CML and up to HML must use either the Intelligent Access Program or Telematics Monitoring Application.

The Australian Transport Safety Bureau has released its final report into the loss of propulsion on the bulk carrier FMG Nicola at Port Hedland, Western Australia.

The incident occurred on 7 February 2025 while the fully laden vessel was departing Port Hedland under the conduct of two marine pilots and with three tugs in attendance. Around 5 nautical miles into the pilotage, the vessel’s main engine unexpectedly shut down in the main channel.

The report found the shutdown was linked to switch activation. Following the incident, ship operator FMG International amended engine management arrangements across its iron ore fleet.

The ATSB has also published an interim report into a separate Port of Brisbane storm event involving the breakaway of four ships on 24 November 2025. That investigation remains ongoing, and the interim report does not yet include analysis or findings.

Members that use branded SMS messages should check whether their sender IDs are registered before 1 July 2026. The SMS Sender ID Register is being introduced to reduce SMS brand impersonation scams. From 1 July, SMS or MMS messages sent using an unregistered branded sender ID may appear as “Unverified” rather than the organisation’s name. These messages may also be grouped with other unverified messages, including potential scams. This may affect members who use branded SMS for parcel delivery updates, customer notifications, booking alerts, security codes, workforce communications, or other business engagements.

Action for members

Members should:

• confirm whether they use branded SMS sender IDs directly or through a telco, message provider, delivery platform or customer communications provider
• contact their telco or message provider to register sender IDs
• ensure Australian Business Register details are current, including authorised contact details
• act early to avoid disruption from 1 July 2026

Further information is available from the ACMA: SMS Sender ID Register

The Queensland 2026–27 Budget is a large-scale infrastructure and economic resilience budget with direct relevance for freight transport, freight logistics and national supply chain performance.

The Budget commits $119.2 billion in capital investment over four years, including $29.6 billion in 2026–27. Almost 70 per cent of the 2026–27 capital program is directed outside Greater Brisbane, reflecting Queensland’s reliance on regional freight corridors, export supply chains, resource networks, agriculture, ports and long-distance road and rail movements.

The central transport commitment is the $55.9 billion Queensland Transport and Roads Investment Program over four years. This includes roads, rail, ports, Queensland Rail, RoadTek, Cross River Rail and state-owned port corporations. The Transport and Main Roads portfolio has $11.165 billion in capital expenditure in 2026–27.

The Bruce Highway remains the most significant freight-related road investment. The Budget provides $898.4 million in 2026–27 for the $9 billion Bruce Highway Targeted Safety Program. The Bruce Highway is Queensland’s key north-south freight spine, linking Brisbane to Cairns and supporting coastal freight, regional communities, agriculture, tourism, resources and essential goods movement. Continued investment in the Rockhampton Ring Road and Tiaro Bypass is also relevant to safety, resilience and freight reliability.

Regional freight corridors are also supported. The Inland Freight Route from Charters Towers to Mungindi receives $35.9 million in 2026–27 as part of a $1 billion program. Queensland Beef Corridors receives $27.7 million in 2026–27 from a $500 million allocation. Country Roads Connect receives $30.8 million in 2026–27. These programs are important for heavy vehicle access, livestock and agricultural freight, regional productivity and resilience when coastal routes are disrupted.

Rail investment is substantial, although largely passenger-network focused. Major allocations include $651 million for Logan and Gold Coast Faster Rail, $567.5 million for Cross River Rail, $251.9 million for Beerburrum to Nambour Rail Upgrade Stage 1, and $410 million for the Queensland Train Manufacturing Program. The Beerburrum to Nambour upgrade is specifically relevant to freight connections between the Sunshine Coast, Moreton Bay, Brisbane and broader networks.

Freight rail receives targeted support rather than a broad productivity package. The Budget includes $16.6 million in 2026–27 for Mount Isa Line resilience improvements and track renewals, and funding for Rockhampton Railyards Rejuvenation. These measures are relevant to resources supply chains, regional rail reliability and long-term freight optionality.

Ports receive $164.5 million in 2026–27 through state-owned port corporations. Key projects include the Cairns Marine Precinct Common User Facility, Gladstone Ports’ Northern Land Expansion Project, North Queensland Bulk Ports’ Bowen Wharf and George Bell Drive Heavy Duty Laydown Area, Abbot Point towage infrastructure feasibility work, and Port of Townsville marine and port facilities investment.

A direct cost issue for port users is the 9 per cent increase in regulated pilotage fees from 1 February 2026. The measure is expected to raise $109.8 million over five years to support the delivery, management and regulation of pilotage services. This will be relevant to shipping lines, exporters, importers, ports and downstream supply chains.

Fuel security is a clear Budget priority. The Government has committed $19 million over two years for a Queensland Fuel Security Plan. The work includes domestic fuel supply priorities, Queensland oil resource assessment, domestic refining capability, the Taroom Trough Development Plan, and support for fuel storage investment. The Budget Overview also refers to unlocking land near ports and fast-tracking up to $100 million in BP investment in additional fuel storage.

Energy reliability remains central to supply chain resilience. State-owned energy businesses will invest more than $5 billion in 2026–27 across generation, transmission and distribution. Key projects include CopperString, the Gladstone Project, Energy Queensland network investment and the Brigalow Gas Peaking Plant. CopperString is also relevant to heavy haulage and project logistics, with associated local road upgrades to support oversize and heavy transport.

Critical minerals are another major supply chain focus. The Budget identifies more than $146 million over three years to accelerate extraction, processing and export of critical minerals, including $100 million for the Queensland Critical Minerals Fund. This will increase pressure on regional road and rail networks, ports, energy infrastructure, industrial land and heavy-lift logistics.

The economic outlook reinforces the importance of freight and logistics. Queensland Treasury forecasts GSP growth to slow from 2.5 per cent in 2025–26 to 1.75 per cent in 2026–27, with headline inflation forecast at 3.75 per cent. The Budget papers identify risks from fuel prices, global oil and gas markets, Middle East conflict, trade uncertainty and supply chain disruption.

Export conditions are mixed. Overseas exports are forecast to grow by 0.75 per cent in 2026–27. Coal exports are expected to recover, LNG values are supported by higher global prices, agriculture exports are moderating from recent record levels, and metals exports face pressure from mine closures and refinery curtailment. Reliable freight corridors, port capacity, energy supply and regional resilience remain critical to export performance.

Housing and workforce measures are not logistics-specific but remain relevant to the sector. The Budget includes $12.3 billion for housing measures, including a doubled $1 billion second round of the Residential Activation Fund. It also includes new TAFE Centres of Excellence and a $64 million extension of the 50 per cent payroll tax rebate for apprentices and trainees until 30 June 2027, subject to legislation.

For ALC members, the Budget’s strongest supply chain measures are road and regional corridor investment, Bruce Highway funding, targeted rail resilience, port infrastructure, fuel security, energy investment and critical minerals development. The key gap is the absence of a dedicated freight productivity or supply chain resilience package. The Budget funds many assets that freight relies on, but it does not present them as a coordinated freight transport and freight logistics agenda.

Key areas to monitor are delivery of the Bruce Highway program, progress on regional freight corridors, port cost settings, implementation of the Fuel Security Plan, energy infrastructure delivery, Mount Isa Line resilience, and whether broader rail investment improves freight reliability and modal choice.