Australia: Complexity in Road Transport Fuel Cost Recovery Order

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
• the difficulty with quantifying the actual increase in the cost of fuel under fixed-rate contracts
• the question of whether the presence of only employment relationships in the contractual chain affects coverage under the Order at all
• the interaction of rise and fall terms in the contractual chain with the RTCCO requirements

What happens next?

The Commission will progress to undertake its formal review of the RTCCO at the end of May.

It is likely that disputes will arise regarding the application of the RTCCO in the coming weeks. Any outcomes will help to clarify the operation of the RTCCO.