The Fair Work Commission’s first road transport contractual chain order compels fortnightly fuel-linked rate updates across major freight contracts – but small clients and cash-in-transit operators are carved out after industry pushback
The Fair Work Commission has issued its first road transport contractual chain order, requiring businesses across Australia’s road transport industry to update the rates they pay for transport services every fortnight to reflect changes in fuel prices.
The order follows legislative amendments introduced by the Albanese government, known as the Fairer Fuel amendments, which created a new pathway for truck drivers and transport operators to seek urgent contractual chain orders. The government said the changes were designed to assist truck drivers when Middle East conflict causes fuel prices to spike.
Under the order, businesses that contract road transport services – including supermarkets, retailers, and manufacturers – as well as transport and logistics companies along the contractual chain, are required to review and update their rates on a fortnightly basis.
Employment and workplace relations minister Amanda Rishworth said the order was about protecting workers from circumstances beyond their control.
“Truck drivers should not be left carrying the cost of global fuel shocks that are completely outside their control,” Rishworth said. “By requiring fuel price changes to be reflected in transport rates, this order helps protect hard-working truckies and small businesses from being pushed to the brink.”
Fuel costs passed through supply chain
The order comes amid a deepening fuel crisis in Australia. On 28 February 2026, US and Israeli forces assassinated Supreme Leader Ayatollah Ali Khamenei, prompting Iran to declare the Strait of Hormuz closed to Western commercial shipping, a report from Core Logistics noted. More than 150 tankers stalled at the entrance to the strait and vessel traffic through the corridor dropped approximately 70%.
Diesel prices have surged 40.1% since late February 2026, driven by the Iran conflict and disruptions to the Strait of Hormuz. As of late March 2026, the national average diesel price stood at approximately 295.8c per litre, with South Australia breaching the $3 per litre mark.
For an owner-operator running a B-double that burns 50–60 litres per 100 km, a single Sydney-to-Melbourne run now costs over $1,300 in fuel alone, up from roughly $900 six months ago. Industry groups have warned that transport fuel surcharge increases of 7.5%–10% across the board since March have not been sufficient to offset those costs.
Flexibility for existing pricing arrangements
The commission built safeguards into the order to ensure it applies only while fuel prices remain unusually elevated. The requirements will cease once average diesel prices fall below $2/L. The commission will also review the order after its first month of operation and then every three months to assess whether it remains appropriate.
The order is designed to be flexible, recognising that different fuel price management arrangements already exist across the industry. Existing arrangements can satisfy the requirements of the order, according to the government.
Exemptions for small operators and cash-in-transit
Following stakeholder feedback, the fortnightly rate review obligation does not apply to the cash-in-transit industry or to small businesses that require the delivery of freight by road.
Rishworth said the order was the first made under the Albanese government’s road transport reforms and forms part of a broader response to fuel disruptions in Australia.
“This is the first order made under the Albanese government’s road transport reforms and sits alongside our National Fuel Security Plan to help Australia respond to fuel disruptions and keep goods moving across the country,” she said.
