Last night’s federal budget has produced a mixed bag for the bus and coach industry, with rising road taxes to be balanced by juicy zero-emissions incentives
Following the announcement of last night’s federal budget for 2023, there is plenty that relates to the future of Australia’s bus and coach industry.
With the cost of living set to continue increasing, there’ll be some relief for members of the industry who are committing to reducing emissions.
With the transition to zero-emissions buses and coaches a primary topic in the local industry, the federal government is clearly committed to improving the hydrogen industry within Australia.
This year’s budget has included $2 billion set aside to fund the development of a clean hydrogen industry within the country, with no details yet on how this will be implemented.
A further $83 million has also been allocated to creating a new ‘Net Zero Authority’ over four years to transition companies out of heavy-emitting industries such as the transport sector.
More financial support has been announced for the transport sector, with the federal government also committing $450 million in the budget to helping transition the country’s biggest emitters to low emissions options before they are required to cut or offset emissions by nearly five per cent each year from July to 2030.
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While this happens, the gas industry has taken a hit through the Petroleum Rent Resource Tax that will hit oil and gas companies, meaning there may be no end in sight for the rising cost of fuel.
The bus and coach industry may also be hit by the announced increase to the heavy vehicle road user charge, which is being lifted by six per cent a year for the next three years to continue providing a money-spinner for the federal government.
The charge, which is used for road repair and maintenance, will go up from 27.2 cents per litre of diesel to 32.4 cents by 2025-26 in a decision made jointly by federal, state and territory transport ministers.
This year’s federal budget has a clear balance for the bus and coach industry, with the rising cost of living and operating being joined by clear financial benefits for companies that commit to transitioning to zero-emissions transport – something the bus and coach sector is leading the way in throughout Australia.