Following the review hearing on 25 May 2026, the Expert Panel of the Fair Work Commission has published a revised draft fuel cost recovery order and an accompanying Statement [2026] FWCFB 131. Whilst the Expert Panel stressed in their statement that they “[have] reached no concluded view as to whether a variation should be made or in what terms”, any variation of the RTCCO is likely to closely mirror the amendments proposed in the revise draft fuel cost recovery order. In this regard, we note the following proposed draft changes to the terms of the RTCCO:
- New contracts: Parties negotiating contracts after 6 March 2026, which provide for or contemplate work performed in the road transport industry, may satisfy their obligations under clause 4.1 or 4.4 of the RTCCO where the parties have ‘set’ the rate they pay (having regard to the cost of fuel on or before 6 March 2026) by an amount necessary to ensure that the other party recovers the increased cost of fuel. The inclusion of the word ‘set’ is helpful for contracts that did not exist and could not ‘adjust’ an existing rate.
- Reasonable Steps: Parties may no longer rely on the mechanisms under clause 4.6(a)-(c) to discharge their obligation to take ‘reasonable steps’ (under clause 4.2) to ensure that secondary parties are adjusting the rate they pay to regulated road transport contractors or road transport employee-like workers for the performance of work in the road transport industry by the amount necessary to ensure recovery of the increased cost of fuel. The Expert Panel clarified that the obligation to take ‘reasonable steps’ is separate to the ‘rate adjustment’ obligation under clause 4.1 of the RTCCO.
- Contractual ‘rise and fall’ mechanisms: Clause 4.6(b) has been amended to provide that, in order to satisfy the rate adjustment obligation under clauses 4.1 and 4.4, an adjustment made under an existing 'rise and fall' formula, cost model or cost benchmark in an applicable collective agreement or contract must occur "each fortnight or twice per calendar month". In practice, this means that if an existing contractual rise and fall formula does not provide for fortnightly or twice-monthly adjustments, it will not be sufficient to satisfy the obligation under clause 4.1.
- Existing and special arrangements: Of note, clause 4.6(c) remains unchanged by the Expert Panel and has not been amended to impose a timing requirement (unlike clause 4.6(b)). The breadth of clause 4.6(c), particularly when contrasted with the more prescriptive amendments to 4.6(a) and (b), suggests that the parties could agree to virtually any adjustment period or frequency. Parties relying on clause 4.6(c) to discharge their obligation under 4.1 or 4.4 must ensure that any ongoing or special arrangement is agreed and accounts for or addresses the recovery of the increased cost of fuel.
- Cessation of the RTCCO: Otherwise, with respect to clause 5.3, the clause which governs the cessation of the RTCCO, the updated order adopts the Transport Workers Union of Australia (TWU) suggested amendment. During the review hearing, the TWU argued that clause 5.3 should be amended so that “the obligations under clause 4 do not cease to operate on a single week’s average and will only cease to operate if at least four consecutive weeks of TGP national averages are less than $2.00”. There is likely to be discussion in submissions about the difference between the RTCCO itself ceasing to operate and the obligations within it ceasing to operate, as well as what happens if the price goes above and below the $2.00 threshold during the four week period.
Any interested party may file written submissions for the Expert Panel’s consideration by 4.00pm (AEST) on Thursday, 4 June 2026. If your organisation has any questions or concerns, or would like to make a submission, please reach out to our key contacts below.
The Fair Work Ombudsman’s guidance on the RTCCO can be viewed here.
Read our latest thinking and key resources on the Fair Work Commission's Fuel Cost Recovery Order.
