Article updated: 14 July 2026
The Road Transport Contractual Chain Order (RTCCO) is an emergency order made by the Fair Work Commission (FWC) in April 2026.
It requires parties at the top and middle of road transport contractual chains (including principals, head contractors, manufacturers, and large retailers) to make fortnightly rate adjustments to ensure that increased fuel costs are passed down to transport operators and owner-drivers, with those obligations ceasing when the national average terminal gate price of diesel falls below $2.00 per litre.
On 7 July 2026, the FWC Expert Panel issued a further statement following the receipt of submissions from interested parties. This article sets out where things stand following that decision.
Where things stand
The Australian Institute of Petroleum (AIP) reported that the weekly national average terminal gate price of diesel fell below $2.00 per litre for the weeks ending 5 June 2026 (189.70 cents) and 12 June 2026 (191.5 cents). This has activated the cessation trigger in clause 5.3 of the RTCCO, meaning that the fortnightly rate adjustment requirements are no longer in effect.
Prices have continued to fall. The AIP reported that the weekly national average terminal gate price of diesel for the week ending 19 June 2026 was 181.1 cents, for the week ending 26 June 2026 was 163.0 cents, and for the week ending 3 July 2026 was 170.1 cents. The price has now been below the $2.00 threshold for five consecutive weeks.
The RTCCO has not been revoked and remains “in operation” for statutory purposes. This distinction matters, as it preserves the FWC’s jurisdiction to act should circumstances change, including if the change to the fuel excise rate contributes to diesel prices rising back above $2.00 per litre.
What this means for businesses
- No current obligation to make adjustments – Whilst the terminal gate price of diesel is below $2.00 per litre, the fortnightly rate adjustments are no longer required. Businesses should nonetheless retain records of all adjustments made during the period of operation, including calculation methodology, diesel price data, and payment records.
- Do not treat this as final, the RTCCO is still in force – If diesel prices rise back above $2.00 per litre, or if the FWC varies the order, obligations could be reinstated at short notice.
- Monitor the fuel excise position – The unwinding of fuel excise relief measures from 2 August 2026 may place upward pressure on diesel prices. Businesses should monitor AIP weekly price reports and be prepared to act quickly if the $2.00 threshold is crossed again.
- Review your contracts – It is worth assessing whether any adjustments made during the order’s operation need to be reviewed.
What the FWC Expert Panel decided on 7 July 2026
The FWC Expert Panel declined both the ATA’s proposal to remove the $2.00 per litre threshold entirely and the Ai Group’s application for revocation. In declining the ATA’s proposal, the Panel noted that prices have now been below the $2.00 threshold for five consecutive weeks, exceeding the threshold proposed in the 29 May 2026 draft variation.
On revocation, the Panel noted that whilst a US-Iran ceasefire has been reached, the outcome of ongoing negotiations remains uncertain, and it cannot be established with confidence that the emergency circumstances justifying the Order have passed.
The Order remains in operation, though clause 4 obligations do not presently apply and whether the Expert Panel can re-enliven them if prices rise again remains a live procedural question.
Next review: 26 August 2026
In accordance with the three-month review requirement under clause 5.4 of the Order, the Expert Panel has directed that the proceedings be listed for report back and case management at 10:00 am AEST on Wednesday, 26 August 2026. Businesses with interests in the outcome, particularly those in construction and logistics supply chains, should consider whether to engage in that process.
If you require assistance in understanding how this may impact your business, the team at Source is here to help you.
Written by Sarah Guttridge, Legal Counsel, Commercial Legal
Information correct as at 14 July 2026.
