Road Transport Contractual Chain Order effective 21 April 2026

As members are aware, recent conflict in the Middle East has driven significant increases in fuel prices. In response, an application was made to the Fair Work Commission seeking a Road Transport Contractual Chain Order to enable affected parties to recover these increased fuel costs.

Following expedited hearings, the Commission issued the order, which took effect on 21 April 2026.

Wat does the order require?

The order mandates that both primary and secondary parties within the road transport contractual chain must adjust rates of pay for work performed in the road transport industry. These adjustments must occur at least fortnightly (or twice per month) and must ensure that the increased cost of fuel is appropriately recovered across the contractual chain.

Adjustments may be implemented through one or more of the following mechanisms:

• Adjusting the overall rate or a component of the rate
• Introducing a fuel levy
• Providing direct reimbursement or an offset
• Any combination of the above

Where existing “rise and fall” clauses or pricing mechanisms are already in place, these may be used to meet the requirements of the order.

Fuel cost increases should be calculated based on the difference between the current fuel price and the price as it stood on or before 6 March 2026.

You can read the full version of the order here.

Who is affected

The order applies broadly across the road transport contractual supply chain and captures most work performed within the industry.

It applies to:

• Primary parties: those at the top of the contractual chain entering into the initial contract or arrangement
• Secondary parties: those engaged under subsequent contracts or arrangements, where work is performed by:
  • a regulated road transport contractor
  • a worker operating under a services contract
  • an employee

This order does not apply to:

• Small businesses with fewer than 15 employees; and
• Any work or delivery performed solely for an individuals private or domestic use.

Operation of the order

The order came into effect on 21 April 2026.

The obligations of primary and secondary parties to adjust costs will cease to apply if the weekly average price for diesel falls below $2.00 per litre. This will be based on the weekly diesel price report of the Australian Institute of Petroleum.

The order will be subject to review after the first month of its operation, and then every 3 months thereafter.

The order represents a targeted regulatory response to rapidly rising fuel costs, ensuring that financial pressures are distributed more equitably across the supply chain. Businesses should act promptly to assess their contractual arrangements, implement compliant adjustment mechanisms, and monitor ongoing fuel price movements.

If you have any questions about the order, or if you are an affected party, please contact the Workplace Relations Team:

📞 (02) 6175 5900
📧 workplace@mba.org.au