Fortnightly ALC Government Relations Update No. 16 | 21 August to 3 September 2026

ALC met with the Department of Climate Change, Energy, the Environment and Water (DCCEEW) to discuss the Government’s Fuel Security and Resilience consultation and the issues that matter most to the supply chain logistics and freight transport industry.

Our key message was that fuel security cannot be measured simply by how much fuel Australia holds. The real test is whether fuel can be accessed, moved and delivered when normal systems are under pressure. Ports, fuel terminals, road freight, freight rail, intermodal facilities and critical freight corridors all form part of that system and need to be considered in resilience planning.

ALC also raised the need for a clear fuel prioritisation framework during a supply disruption, with protection for the transport and infrastructure that keeps essential goods moving. We highlighted the particular importance of diesel to freight, agriculture, mining, emergency response, and regional Australia, and the need to test how strategic reserves would be distributed in practice during road closures, terminal outages, workforce shortages, or other disruptions.

We also discussed the longer-term role of renewable diesel. ALC sees an opportunity to link fuel security with freight decarbonisation by supporting domestic renewable diesel capability, particularly for parts of the heavy freight sector where electrification will take longer.

ALC will continue working with DCCEEW as the consultation progresses and will keep members updated on further developments.

Submissions close on 15 September 2026.

ALC took part in the latest ACCC Performance Consultative Committee meeting, which brings together industry representatives to discuss competition, consumer, and small-business issues.

The ACCC acknowledged the value of industry input, including ALC’s earlier contribution to discussions about how businesses can work together during pandemics and other major disruptions to help keep supply chains operating.

A large part of the meeting focused on artificial intelligence and technology adoption. There was discussion about the National AI Plan, Australia’s relatively strong uptake of AI, and the fact that public trust has not necessarily kept pace. The Committee also discussed the need for better training and awareness, particularly regarding consumer protection, scams, and the risks associated with new technology.

There was also discussion about Australia’s reliance on overseas technology providers and the risk of businesses becoming locked into systems or platforms. Another issue raised was the growing gap between large businesses and SMEs. Larger companies often have the people and resources to properly assess new technology, while smaller businesses may not.

ALC highlighted how relevant this is for the supply chain logistics and freight transport industry. Workforce shortages, particularly in operational roles, are pushing businesses to look more closely at AI, automation and other technologies. At the same time, there is growing pressure to improve productivity, so technology is becoming an increasingly important part of how businesses think about their workforce and future investments.

The Committee also discussed proposed reforms to unfair trading practices, particularly where small businesses may be at a disadvantage.

ALC raised the issue of sham contracting in road transport, including arrangements where drivers are engaged through an ABN rather than as employees. While these arrangements can sometimes offer higher immediate take-home pay, they may not provide the same protections or entitlements, including superannuation.

ALC also pointed out that this has broader implications for the industry. With driver shortages already a significant issue, businesses doing the right thing can find themselves competing against operators offering higher rates through contracting arrangements that may not provide the same employment conditions. There are also potential safety concerns when more commercial risk and pressure are placed on individual drivers.

ALC participated in the latest Australian Maritime Defence Council discussions, which focused on port infrastructure, Defence access arrangements, biosecurity requirements and maritime capability.

The Council has revised its working definition of a port following earlier industry feedback, removing the broader maritime approaches from the definition. ALC has asked for the final wording to be circulated before providing formal feedback. The Port Infrastructure Working Group is also waiting for confirmation on whether its remit will cover cyber security infrastructure as well as physical infrastructure.

Defence is continuing work to secure access to critical port infrastructure during periods of heightened demand or disruption. Early work under its Capability Assurance Framework suggests Defence will continue to rely heavily on commercial infrastructure, with a key challenge being how normal cooperative arrangements shift as conditions escalate, and multiple users compete for access. This work will link with the SOCI Act and a planned Defence port utilisation workshop in November.

DAFF also provided an update on the revalidation of ports and airports, as existing first-point-of-entry determinations begin to sunset. Legislative changes are expected in October. ALC raised questions about the commercial arrangements that DAFF should consider when assessing ports, as well as who would fund any additional infrastructure required by Defence or DAFF, and how new requirements would be managed where ports have limited space.

A full-day Defence port utilisation exercise is planned for the week of 16 November in Queanbeyan. The scenario will test how a fictional East Coast port would respond to a major weather event and humanitarian response, with the aim of identifying operational gaps, infrastructure needs and investment priorities.

The meeting also covered broader maritime capability issues, including opportunities for closer Defence-industry workforce collaboration, the Broome floating wharf project as a possible model for faster infrastructure delivery, inter-coastal shipping between Perth and the Kimberley, and the bulk terminal upgrade underway at Kwinana.

The Australian Government is consulting on a new framework to support low-carbon liquid fuels in Australia, with a focus on fuel security, domestic production, and emissions reduction.

The proposal would start with requirements based on the volume of low-carbon fuel supplied into the market. The aim is to create enough demand to give producers and investors greater confidence to invest.

From 2035, the Government is proposing to move to a carbon-intensity model, in which fuels would be assessed more directly on the emissions reductions they deliver.
There would also be a separate requirement for sustainable aviation fuel from the start.

The Government is proposing to initially cover diesel, jet fuel and petrol, which together make up around 95 per cent of Australia’s liquid fuel market.

Diesel and jet fuel are particularly important because they remain critical to sectors including supply chain logistics and freight transport, mining and aviation, where alternatives are not yet available at scale.

Under the proposal:

• the obligation would generally sit with fuel suppliers such as importers and refiners, rather than individual fuel users;
• renewable diesel, biodiesel, ethanol, sustainable aviation fuel and e-fuels could potentially qualify;
• businesses supplying more low-carbon fuel than required could earn credits and sell them to other participants;
• the Government is considering a buyout mechanism where fuel or credits are unavailable or become too expensive;
• credit banking is not proposed during the first phase, although it could be introduced later; and
• fuels would need to meet minimum carbon intensity standards to qualify.

A lot of the detail is still open for consultation, including how ambitious the targets should be, when the scheme should begin, which fuels should be included and how compliance should work.

For ALC members, one of the biggest issues will be the implications for fuel costs.

While freight operators are unlikely to bear the obligation directly, any additional cost imposed on fuel suppliers could ultimately be passed on to customers.

The Government is asking industry for evidence on fuel costs, supply, availability, investment decisions and the practical impact of the proposed settings.

Another important issue is domestic production. The Government wants to build an Australian low-carbon fuels industry, but the proposed framework would also allow the import of fuel.

This raises an important question about how much of the future market will actually be supplied from Australia and what additional support may be needed to make domestic production commercially viable.

Submissions close on 15 September 2026.

ALC will consider the implications of the proposal for the supply chain logistics and freight transport industry and would welcome member feedback, particularly on fuel costs, availability, operational impacts, investment decisions, and the practical challenges of moving to lower-carbon fuels.

The National Coordination Mechanism met on 28 August as H5 bird flu detections continue across South Australia, Victoria, Tasmania, Queensland and New South Wales. DAFF reported 350 confirmed H5 events in wild animals nationally, with the main area of circulation along the south-east coastline and increasing detections in Tasmania. Australia has also recorded its first confirmed infections in wild mammals, including two long-nosed fur seals and a red fox in South Australia. Authorities currently assess these as individual spillover events, with no evidence of mammalian adaptation of the virus.

The Australian Government has announced a further $145 million to support the national response, including additional biodiversity preparedness and response measures. Targeted vaccination programs are underway for high-conservation-value native birds, including more than 5,000 little penguins in Victoria, while vaccination has also commenced at Taronga Zoo. The assessed human health risk remains low.

For Victoria, mandatory poultry housing requirements remain in place in the south of the state, with voluntary housing recommended elsewhere. National agencies are also working to improve the consistency of advice on bird carcass management, PPE, and public health precautions. The NCM will meet again on 11 September, or earlier if required.