Motor Tax – Heavy vehicles

About the Heavy Vehicle Motor Tax

From the 1st of July 2016 the motor tax charged for heavy vehicle in all states and territories of Australia (except Western Australia and Northern Territory) will have two parts;

1. a road use charge to recover the costs of road wear and tear (retained by States and Territories), and;
2. a regulatory component to fund the operations of the National Heavy Vehicle Regulator (NHVR)

For a breakdown of the new charges and a description of the different heavy vehicle types refer to the Breakdown of Motor Tax below.

What is the NHVR?

On the 10 February 2014, the Heavy Vehicle National Law (HVNL) commenced allowing the National Heavy Vehicle Regular (NHVR) to undertake a number of heavy vehicle regulatory functions on behalf of states and territories. The NHVR is based in Queensland and is Australian's independent Regulator for all vehicles over 4.5 tonnes Gross Vehicle Mass.

Why has the change occurred?

In November 2012 the Transport and Infrastructure Council (i.e. State and Territory Ministers) directed the National Transport Commission (NTC) to undertake a comprehensive review of the heavy vehicle charging system. In May 2013 the Council endorsed the NTC proceeding with a charges Determination on the basis of its review recommendations.

As part of the commencement of the HVNL the intergovernmental agreements between the Commonwealth and States and Territories provided that the ongoing costs of the NHVR would be recovered from the heavy vehicle industry through registration charges.

The NTC conducted an extensive national consultation. For more information - Regulatory Impact Statement (PDF).

The heavy vehicle charges in Tasmania are contained in The Vehicle and Traffic Act 1999 and the amendments to this Act to reflect the new charges have been passed by both Houses in the Tasmanian Parliament.

How is motor tax calculated?

Currently the motor tax heavy vehicle pricing in Australia is based on a pay as you go (PAYGO) cost base that includes a fixed annual registration charge (collected by jurisdictions) and a fuel-based road user charge (collected by the Australian Government).

PAYGO aims to recover the attributable costs of road wear and tear for each vehicle type, and a share of common costs which benefit all road users.

Heavy vehicle charges from the 1st of July 2016 will initially be set under the Heavy Vehicle Pricing Determination and adjusted annually to enable charges to keep up with expenditure.

Why are the prices different for each vehicle type?

The current methodology for calculating the road user charge reflects historical average network-wide costs attributable to heavy vehicles. However, recovering costs in this way does not reflect the actual costs imposed by an individual truck on a particular route. This limits the extent to which existing road-user charging provides incentives for the efficient use of the road network.

The Determination updates the assumptions and methodology on which charges are based using data, and changes the way charges are allocated across the articulated vehicle fleet to better represent the load carrying capacity that results in wear and tear on roads.

This has resulted in a reallocation of charges among heavy vehicle types with charges for some heavy vehicle types increasing and others decreasing.

Will I still be able to apply for 40% rebates of motor tax for heavy vehicles?

Tasmania will continue to offer the 40% rebate to eligible operators i.e. farming, interchangeable trailers and 3 axle buses. The 40% rebate will be off both components of the motor tax (road use charge and regulatory component).

How can I find out more about the national laws for heavy vehicles?

For more information on the charges you can visit the National Transport Commission website at www.ntc.gov.au. For information on the National Heavy vehicle law (HVNL) you can visit the National Heavy Vehicle Regulators website - www.nhvr.gov.au or call - 1300 696 487.

Heavy vehicle motor tax table

Motor Tax Heavy Vehicles (Breakdown)

See individual tables for 40% rebate

As at 1 November 2023

Special Purpose Vehicles