Happy with diesel security but what about the roads?

AUSTRALIA'S livestock and rural transport sector has welcomed the Federal Budget's $10.7 billion fuel reserve and facility.

But the Australian Livestock and Rural Transporters Association (ALRTA) says the Government has failed to match that investment with a serious plan to fix the rural freight roads that keep agricultural supply chains moving.

Measures announced on Tuesday night in Federal Treasurer Jim Chalmers’ budget includes a $3.2 billion Australian Fuel Security Reserve which, together with increased stockholding obligations, will lift diesel and jet fuel reserves to 50 days, backed by a $7.5 billion Fuel and Fertiliser Security Facility.

It also cuts the heavy vehicle road user charge from 32.4 cents per litre to zero for three months from April 1, alongside a broader temporary fuel excise reduction.

According to ALRTA President Gerard Johnson these fuel measures are the most significant direct relief the industry had seen in years.

"Livestock and rural transport operators run on diesel. It is not a discretionary cost," Mr Johnson said.

"Cutting the road user charge to zero goes straight to one of the largest operating costs our members carry,” he said.

"If diesel does not reach regional operators when and where it is needed, livestock does not move, feed does not move, and the consequences are immediate.

"Regional freight operators must be treated as essential users in any fuel reserve or drawdown arrangements."

But the road funding picture does not match the scale of the fuel package, he said.

Despite $8.179 billion in road investment in 2026–27 and $38.7 billion over five years, ALRTA said there was still no clear plan to prioritise the livestock routes, ageing bridges and saleyard access roads that constrain rural freight every day.

While rail has an important role in national freight, livestock and rural freight cannot simply shift modes. There is no substitute for heavy vehicle access to farms, saleyards, feedlots and processors.

"That makes targeted investment in regional road freight productivity one of the fastest ways to reduce transport costs and ease supply chain pressure," Mr Johnson said.

"Local roads are not minor roads when they are carrying livestock, grain, feed, fertiliser and farm supplies — they are part of the national freight network and need to be funded that way."

A $2 billion infrastructure slippage in 2026–27, rising to $4.1 billion across three years, compounds the problem as the Middle East conflict affects the availability of key construction materials.

"This budget puts serious money into fuel security and deserves credit for that," Mr Johnson said.

"The next job is harder: fixing the rural freight roads that keep regional Australia moving."