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ARTICLE · 05 MAY 2026

Complexity In Road Transport Fuel Cost Recovery Order

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

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The Fair Work Commission held an engagement conference regarding its recent Road Transport Contractual Chain Order (RTCCO) in response to the rise in fuel costs due to conflict in the Middle East.

AustraliaEmployment and HR

The Fair Work Commission held an engagement conference regarding its recent Road Transport Contractual Chain Order (RTCCO) in response to the rise in fuel costs due to conflict in the Middle East. 

The conference was an opportunity for participants to raise areas of concern with the Commission in advance of its first formal review of the RTCCO which will occur at a hearing on 25 May 2026.

Whilst the Transport Workers' Union considers the RTCCO is working well, various concerns were raised by other participants.

These concerns or questions included:

  • uncertainty about the scope of the road transport contractual chain - in particular identifying the top of the chain 
  • uncertainty as to how primary parties can meet their obligations to pass through fuel cost increases to subcontractors, and whether any audit or verification role is expected of them

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