The Bus Industry Confederation (BIC) has responded to the latest federal Budget, saying the transport infrastructure package has “largely forgotten the bus industry”.
Thanks to BIC, the confederation has shared an update on the key measures affecting the bus and coach industry.
“Whilst there are things to celebrate in the budget the $10.3 billion transport infrastructure package has largely forgotten the bus industry,” BIC executive director Varenya Mohan-Ram says.
“Given that we are the most cost effective form of public transport for the taxpayer, money spent in this industry has a greater return on investment in our community.”
Key measures discussed by BIC include the heavy vehicle road user charge, previously 32.4 cents per litre of diesel, being reduced to zero for three months from April 1 before expiring on June 30.
The fuel excise has also been cut by roughly 26.3 cents per litre for the same period, with BIC saying this represents a “significant short-term saving for diesel-dependent operators, particularly regional and school bus services with high fuel consumption”.
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When it comes to notable absences, BIC says there’s no dedicated zero-emissions bus fund or bus depot charging infrastructure support, despite the government funding EV charging for light vehicles and Australia Post’s fleet.
“There is no extension of the fuel excise cut or heavy vehicle road user charge reduction beyond June 30. Members will face an immediate fuel cost increase when these measures “expire on June 30,” BIC says.
It says there is no bus-specific allocation within the $10.3 billion transport infrastructure package, with the package instead funding national freight rail, Victoria’s Suburban Rail Loop, the Bruce Highway upgrades, WA’s Anketell Road upgrades and other active transport programs.
Included in the Budget is the National Reconstruction Fund’s Economic Resilience Program. which is providing $1 billion in interest-free loans to manufacturing and logistics businesses facing cashflow pressure from fuel costs or supply chain disruption.
BIC says bus and coach operators and manufacturers may be eligible and applications are open through participating banks for loans up to $5 million, and directly through the NRFC for loans over $5 million. The bank-administered program is open for six months from April 20.
“The government has also empowered the Fair Work Commission to make orders requiring more timely adjustments to fuel terms in road transport contracts,” BIC says.
“This has been in development for some time and gives small operators a formal mechanism to seek relief when fixed-price contracts do not adequately account for fuel price spikes.”
In new announcements, the government will accelerate heavy vehicle reforms through the National Competition Policy process, with the explicit aim of increasing productivity and supporting the uptake of zero emissions heavy vehicles.
“This is significant for BIC. The NCP framework will be used to push for national harmonisation of heavy vehicle regulation, something we have been calling for in the context of the ZEB transition,” BIC says.
“The detail of which specific reforms will be pursued is yet to be determined through consultation, so this is an important process for BIC to engage with.”
The government will also legislate to streamline the ACCC’s ability to authorise industry coordination during exceptional circumstances, such as future fuel supply emergencies, allowing operators to coordinate more quickly during a crisis without risking competition law breaches.
“Continued investment in apprenticeship support is confirmed in the Budget, though specific funding figures are not publicly disclosed,” BIC says.
“This is relevant to our bus mechanic, bodybuilder and auto electrician pipeline and we should be ensuring member employers are aware of and accessing available apprenticeship incentives.”
The government will also work with states to develop national occupational licensing, with BIC saying this carries relevance to the bus sector.
Funding has been confirmed to accelerate skills assessments and occupational licensing for overseas-trained workers.
“Given the acute driver shortage across the industry, faster pathways for overseas-trained bus drivers is directly relevant. It might be worth BIC engaging with the Department of Employment and Workplace Relations on how this applies to passenger transport occupations,” BIC says.
Production support for domestic low carbon liquid fuels including hydrogen, which BIC says is relevant to the longer-term ZEB transition for regional and intercity coach services where battery electric is not yet viable for longer routes.
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