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Fuel cost recovery: the new FWC order re-writing commercial contracts

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The Fair Work Commission has made an order requiring a series of proactive steps directed towards recovery of increased fuel costs across the supply chain. This order has been made against the backdrop of the ongoing Middle East conflict, which continues to have profound humanitarian consequences, alongside significant impacts on global energy markets and supply chains. The order commenced on 21 April 2026 and now requires fuel cost increases to be passed through relevant road transport contractual chains by way of periodic rate adjustments or another agreed processes which provide for recovery of increased fuel costs. The intention of the order is for increased fuel costs to be passed up the supply chain and ultimately borne by the end user of road transport services. 

The order has impacts for all businesses that enter into contracts providing for road transport or who are end users of road transport. It operates across the supply chain, impacting not only transport providers and owner drivers but also businesses who are merely customers of transport providers – or in some cases, parties even further up the chain. Participants across the road transport supply chain, including customers, need to be aware of this order, assess its implications and develop a plan to comply.

On this page, you will find all of our key resources to help you stay up to date on these developments. 

Latest Thinking

Draft order released: some clarity, more confusion

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:

03 June 2026

The review of the FWC’s Fuel Cost Recovery Order – confusion remains and an opportunity lost

On 25 May 2026, the Expert Panel of the Fair Work Commission (the Expert Panel) conducted a review hearing of the road transport contractual chain order (RTCCO). The hearing was an opportunity for interested parties to ventilate interpretation and operational issues they have encountered since the RTCCO commenced operation on 21 April 2026.

26 May 2026

RTCCO Update: Fair Work Ombudsman clarifies 'reasonable steps' obligations, but key questions remain unanswered

On Monday 19 May 2026, the Fair Work Ombudsman (the Ombudsman) updated their published guidance on the operation of the road transport contractual chain order issued by the Fair Work Commission on 20 April 2026 (the RTCCO).

21 May 2026

Businesses face uncertainty after fuel cost recovery order

On 20 April 2026, the Fair Work Commission made an extraordinary road transport contractual chain order (RTCCO) to support recovery of fuel cost increases arising from the Middle East conflict.

05 May 2026

The Fair Work Commission’s extraordinary fuel cost recovery order – implications for business

The Fair Work Commission has made an extraordinary order to support recovery of increased fuel costs associated with the Middle East conflict. The order commences from 21 April 2026 and requires fuel cost increases to be passed through relevant road transport contractual chains by way of periodic rate adjustments or another agreed process which provides for recovery of increased fuel costs.

20 April 2026

Key Contacts

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Labour & Employment Articles

Insight

Draft order released: some clarity, more confusion

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:

03 June 2026

Insight

The review of the FWC’s Fuel Cost Recovery Order – confusion remains and an opportunity lost

On 25 May 2026, the Expert Panel of the Fair Work Commission (the Expert Panel) conducted a review hearing of the road transport contractual chain order (RTCCO). The hearing was an opportunity for interested parties to ventilate interpretation and operational issues they have encountered since the RTCCO commenced operation on 21 April 2026.

26 May 2026

Insight

RTCCO Update: Fair Work Ombudsman clarifies 'reasonable steps' obligations, but key questions remain unanswered

On Monday 19 May 2026, the Fair Work Ombudsman (the Ombudsman) updated their published guidance on the operation of the road transport contractual chain order issued by the Fair Work Commission on 20 April 2026 (the RTCCO).

21 May 2026