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Fuel costs have been front of mind for a while now, and the government has stepped in with a new rule that could directly impact how your transport costs are managed.
From 21 April 2026, a new Fair Work Commission order requires businesses across the road transport supply chain to pass on fuel cost increases fortnightly. If your contracts don’t already account for this, it’s something you’ll want to get on top of quickly.
What’s changed?
The new order called the Road Transport Contractual Chain Order - Fuel Cost Recovery 2026 (RTCCO) has been introduced in response to rising fuel prices.
In simple terms, it means businesses must make sure fuel cost increases can be recovered throughout the entire transport chain. That includes everyone from large retailers and manufacturers through to logistics providers and subcontractors.
Importantly, this isn’t optional. The rules override any contract that doesn’t meet the minimum requirements.
Why this matters for your business
If you engage transport providers or sit anywhere in the chain, this isn’t just a compliance exercise. It could have a real impact on your costs, margins, and how your contracts are structured.
Without the right mechanisms in place, you could be:
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Absorbing fuel cost increases you’re not required to
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Passing on costs incorrectly
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Exposed to compliance risks or disputes with suppliers
And with the Fair Work Commission reviewing this regularly (starting late May 2026), it’s not something that can sit on the backburner.
What you should be doing now
The first step is a quick sense check of your current contracts.
Ask yourself:
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Do we have a clear method for adjusting transport rates when fuel prices change?
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Are those adjustments happening frequently enough?
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Are we applying them consistently across our supply chain?
Some businesses will already have “rise and fall” or fuel levy clauses in place. If they’re structured properly, you may already be covered.
If not, you’ll need to introduce a way to adjust rates using a recognised fuel price benchmark.
It’s not just large businesses affected
This applies broadly across the transport ecosystem. You’re likely impacted if you:
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Use road freight to move goods
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Engage logistics or transport providers
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Subcontract transport work
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Operate within a supply chain that relies on freight
The key thing to understand is that the obligation flows through the entire chain, not just at the top.
The bottom line
These rules are already in effect, and businesses are expected to be compliant now.
Our team can help you:
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Understand how the changes impact your cost base and pricing
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Work through practical ways to implement compliant fuel adjustment mechanisms
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Ensure you’re applying changes consistently across your supply chain
Contact one of our trusted advisors today and ensure your business is set up correctly, staying compliant and not wearing unnecessary fuel costs.
Jace Pedonese is a Partner in our Accounting & Tax Division, helping clients navigate complex tax and business advisory matters with clarity and confidence. Supportive, trusted, and reliable, he works closely with clients to set financial goals, optimise strategies, and maximise business potential, ensuring informed and timely decision-making.