From 21 April, the first Road Transport Contractual Chain Order (RTCCO) is now in place.

Made by the Fair Work Commission, the Order sets rules to make sure fuel cost increases are built into transport rates across the supply chain.

What this means

Businesses must make sure the rates they pay for road transport work reflect increases in fuel costs since 6 March 2026, as well as any ongoing changes. These obligations apply across the whole chain—down to contractors (including owner drivers), and up to the business at the top of the chain.

Who it applies to

The Order applies to most businesses involved in road transport. This includes those that move their own goods, use transport companies, receive goods by road, run transport operations, or engage contractors.

What you need to do

Review your rates regularly
Rates need to be checked at least every fortnight (or twice a month) and adjusted so they keep up with fuel price changes.

Adjust rates in a practical way

This can be done by increasing rates, adding a fuel levy or surcharge, reimbursing fuel costs, or using a mix of these.

Pass costs through the chain

Fuel cost increases need to flow through the supply chain—both up and down

Extra requirement

Some businesses at the top of the chain may need to take reasonable steps to make sure transport providers further down are also adjusting their rates. This does not apply if the business is a small business employer and not a transport business.

Timing

• Started: April 21, 2026.
• Does not apply to past arrangements.
• Will stop if average diesel prices drop below $2.00 per litre, based on data from the Australian Institute of Petroleum.

Important

This Order is legally enforceable, similar to a modern award or enterprise agreement. Not following it can lead to penalties.

More Information

Further guidance is available from Australian Business Lawyers & Advisors (ABLA), the team is ready to assist you on 1300 565 846.

Further details on the fuel cost recovery can be found on the ABLA website here