The Expert Panel of the Fair Work Commission (the Expert Panel) has confirmed that the road transport contractual chain order – fuel cost recovery (RTCCO) will live on for some time, but without any ongoing obligations imposed on primary and secondary parties.
In our previous update here we reported that while the Expert Panel was waiting on submissions from interested parties as to the terms of the draft revised RTCCO it had issued on 29 May 2026, the diesel price changed for the better, with the weekly national price for diesel falling below $2.00 per litre for consecutive weeks.
The consequence of that price fall was that clause 5.3 of the unrevised RTCCO was activated. In those circumstances the Expert Panel’s “provisional” view was that the RTCCO continued to be “in operation”, notwithstanding the fact that the ongoing obligations on primary and secondary parties under clause 4 of the RTCCO had then ceased to apply. Given that situation, the Expert Panel invited interested parties to make submissions as to what course it should then adopt, including whether it should vary the RTCCO to re-enliven its terms.
After receipt of further submissions, on 7 July 2026 the Expert Panel handed down a further statement noting that:
- most parties who made submissions appeared to accept that the Expert Panel could re-enliven the obligations in clause 4 (although there was some disagreement as to whether it could do so retrospectively and what procedure would have to be followed);
- having said that, no party (other than the Australian Trucking Association) expressed the view that the Expert Panel should vary the RTCCO to re-enliven its operation at this time; and
- for its part the Transport Workers’ Union (TWU) did not press for the RTCCO to be varied, but rather suggested that it should be reviewed in one month to assess whether any variation should occur having regard to the reduction in the fuel excise and potential volatility of the Middle East conflict.
The Expert Panel determined that it would not vary the RTCCO as it had originally proposed, on the basis that the diesel fuel price had now been below the $2.00 threshold for 5 weeks (more than the time period proposed in the revised draft RTCCO) and they were not convinced that the phasing out of the reduced fuel excise justified any variation.
Despite acknowledging that there were no ongoing obligations arising under the RTCCO and deciding not to vary the RTCCO, the Expert Panel also chose not to revoke the RTCCO.
The Expert Panel has kept the RTCCO on foot on the basis that there remained some uncertainty as to whether there will be a final negotiated peace in the Middle East, the Expert Panel did not have a high level of confidence that the emergency circumstances that lead to the RTCCO being made had definitively dissipated as a result, and that it did not see the continuing operation of the RTCCO causing prejudice to any party.
So for now the RTCCO lives on, unvaried, without imposing ongoing obligations.
Clause 5.4 of the RTCCO requires the Expert Panel to review the order after 3 months, that is in August 2026. Consequently, the Expert Panel has listed the RTCCO proceedings for a report back and case management conference on 26 August 2026.
If you have any questions in relation to the operation of the RTCCO, please reach out to one of your key contacts.
