Fairer Fuel Bill 2026: New Fair Work Protections for Truck Drivers

The Fair Work Amendment (Fairer Fuel) Bill 2026 amends the Fair Work Act 2009 to create a faster process for protecting truck drivers and owner-drivers when fuel prices spike.

The bill establishes road transport contract chain orders (RTCCOs) — orders that the Fair Work Commission can make to adjust contract rates up the supply chain when fuel costs jump. Previously, this process was slow and cumbersome. The new bill lets the FWC act quickly.

The bill commenced on 2 April 2026.

Here's how the squeeze works in road transport:

• A large retailer contracts a logistics company to deliver goods
• The logistics company subcontracts to smaller operators or owner-drivers
• When fuel prices spike (like now, above $2.30/litre), the cost falls on the driver at the bottom of the chain
• Drivers can't renegotiate their contract rate mid-term — they just cop the loss

This creates a safety risk. Drivers squeezed on margins are pressured to skip rest breaks, overload trucks, or work longer hours to cover fuel costs. The Fairer Fuel Bill addresses this by letting the FWC intervene in the contract chain.

Under the new framework:

• The FWC can make RTCCOs that require participants in a road transport supply chain to adjust payments when fuel costs change significantly
• Orders can apply to any party in the chain — not just the immediate contractor, but the principal at the top
• The process is faster than the previous framework — designed to respond to price spikes in real time
• Drivers or their representatives can apply to the FWC for an order

This is a significant shift. Previously, owner-drivers were largely on their own when fuel costs ate into their margins.

The bill covers:

• Employee truck drivers — including those employed by subcontractors
• Owner-drivers — independent contractors operating their own trucks
• Road transport supply chain participants — anyone in the contracting chain, from principal to driver

It does not cover other types of transport (rail, maritime, air) — it's specifically for road transport.

If you're a truck driver or owner-driver feeling the fuel cost squeeze:

• Know the new law exists — you can now apply to the FWC for a contract chain order if fuel costs are making your contract unviable
• Document your fuel costs — keep records of fuel purchases, distances, and how costs have changed
• Talk to your union — the TWU (Transport Workers Union) is actively supporting drivers through this process
• Review your contract — check if it has a fuel surcharge or price adjustment clause
• Check your employment status — if you're classified as a contractor but work like an employee, you may have additional rights. Use our contractor calculator

For employee truck drivers, also check you're being paid correctly under the Road Transport and Distribution Award.