New financial year ushers in higher operating costs

Trucking needs to factor in higher wages, increased superannuation and new road user charges from start of the next week

New financial year ushers in higher operating costs
New financial year ushers in higher operating costs
June 28, 2013

The new financial year will bring with it increased operating costs for the trucking industry, with wages, superannuation payments and road user charges all rising on July 1.

The first stage of the Federal Government’s plan to increase superannuation from 9 to 12 percent begins, meaning businesses will need to increase payments to 9.25 percent. The rate will increase gradually over seven years until it reaches 12 percent on July 1, 2019.

Employers will also need to make superannuation guarantee contributions for employees who are 70 years old or over.

The fuel excise will rise to 26.14 cents per litre, coinciding with higher heavy vehicle registration fees.

The 0.64 cents per litre increase to the excise will reduce the trucking industry’s fuel tax credit to 12 cents per litre, while semi-trailer fees will go from $6,394 to $6,555.

A nine-axle B-double will cost $14,769 to register – a $362 increase. The price for registering a double road train goes from $13,857 to $14,205, with a triple road train costing $17,025 (an extra $418).

Trucking companies employing staff on an award will bear an extra cost due to the Fair Work Commisison’s decision to increase wages for all award-reliant workers by 2.6 percent on July 1.

It means truck drivers employed under the under the Road Transport and Distribution Award or the Road Transport (Long Distance Operations) Award should notice a little extra in their next pay packet.

The Fair Work Ombudsman is using the lead-up to the new financial year to remind employers to pass on the higher pay rates to staff come Monday.

"More than 1.5 million workers on award wages, including adult and junior employees, trainees, apprentices, employees with a disability and workers receiving piece rates will get the increase," the FWO says.

The minimum wage for workers not covered by an award will rise to $622.20 per week, or $16.37 per hour for adult workers.

"Employers can go to the Fair Work Ombudsman’s website now to check what the new pay rates for their staff will be," Acting Ombudsman Michael Campbell says.

"A common cause of many underpayments is employers not passing on annual wage increases, which can lead to large underpayments if left unchecked for a long period."

The FWO says employers need to be aware that some annually indexed figures also increase in July. For example, the high income threshold for modern awards increases to $129,300, which may affect award application and access to unfair dismissal protections for some employees.

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