Published 20 April 2026

The first road transport contractual chain order takes effect from 21 April 2026.

It sets rules for fuel cost recovery for parties in a road transport contractual chain.

On this page:

• Road transport contractual chain orders
• Now in effect: Fuel cost recovery order
• What you can do now
• How we can help
• Keep up to date
• More information

Road transport contractual chain orders

Road transport contractual chain orders (RTCCOs) set rules about pay and conditions for workers, businesses and others in road transport contractual chainsA chain or series of contracts or arrangements where:work is performed for a party to the first contract in the chain or series by a regulated road transport contractor or a road transport employee-like worker under a services contract or by an employeeat least one party to the first contract or arrangement is a constitutional corporation.. This includes for regulated workersA person who is an employee-like worker or a regulated road transport contractor. and regulated businessesA business that hires contractors in the road transport industry or a digital platform operator who enters into or facilitates a services contract under which employee-like workers perform work..

RTCCOs are made by the Fair Work Commission (the Commission), the national workplace relations tribunal. These orders can include rules about:

• fuel levies
• rate reviews
• cost recovery
• payment times
• termination.

RTCCOs are legally enforceable.

To learn more about RTCCOs and the Commission, go to Regulated worker and road transport contractual chain standards.

You can also watch a short animation about RTCCOs:

Now in effect: Fuel cost recovery order

The Commission has now approved the first RTCCO: Road Transport Contractual Chain Order — Fuel Cost Recovery 2026 .

Below we summarise the order, including:

• why it’s being made
• who it covers
• what rules it sets
• when it applies
• how disputes are dealt with
• penalties for not complying with it.

Why it's being made

The RTCCO has been made because there is fuel supply disruption in Australia caused by the ongoing conflict in the Middle East.

Its purpose is to help road transport industry businesses and workers recover fuel costs.

The Transport Workers’ Union of Australia (TWU) and the Australian Road Transport Industrial Organization (ARTIO) applied together for this RTCCO. It follows recent changes to the Fair Work Act to help fast-track applications for RTCCOs: Fairer Fuel: Reforms to road transport orders.

Who it covers

The RTCCO covers all work performed in the road transport industryAn industry that covers:the road transport and distribution industry (excluding the transport of livestock)long distance operations in the private road transport industry (excluding the transport of livestock)the waste management industrythe cash in transit industrythe passenger vehicle transportation industry, but not including electric tramway, monorail or light railas defined by their awards. (excluding cash in transit).

It covers the following workers, businesses and others in a road transport contractual chain performing work in the road transport industry:

• primary parties
• secondary parties
• regulated businesses
• regulated road transport contractorsA regulated road transport contractor is an independent contractor in the road transport industry who meets set criteria.
• road transport employee-like workersAn employee‑like worker who performs work in the road transport industry..

 To read definitions of some of these terms, go to Key terms.

The RTCCO doesn’t apply to employees of primary or secondary parties. It also doesn’t apply to primary parties in a road transport contractual chain who are in that chain because they’re:

• passengers being transported in a motor vehicle, limousine, hire car, bus or coach, or
• an individual who has arranged the delivery (or consignment) of a thing that’s solely for private or domestic purposes.

What rules it sets

The order requires primary parties and secondary parties in road transport contractual chains to adjust their rates fortnightly or twice each calendar month to ensure recovery of the increased cost of fuel. This is so the contractors and workers they engage are compensated for increases in fuel cost.

Primary party

Primary parties are people, businesses or others in a road transport contractual chain who are parties to the first contract or arrangement in the chain.

Primary parties are the parties at the top of the chain. That is, the ones who enter into a contract because one of the parties needs road transport services. For example:

• manufacturers and suppliers
• large retailers
• construction companies.

Under this RTCCO, a primary party must now adjust the rate paid to the other primary party (or parties) to the contract to an amount that ensures that the other primary party is compensated for any increase in fuel costs.

Primary parties must do this:

• each fortnight, or
• twice each month.

Those primary parties must also take reasonable steps to ensure that secondary parties (that is, parties to contracts further down the contractual chain) engaging regulated road transport contractors and road transport employee-like workers in the same contractual chain adjust the rate paid to those workers by the amount necessary to ensure that they are compensated for any increase in fuel costs. This requirement to take reasonable steps doesn’t extend to small business employersA small business employer is an employer with fewer than 15 employees at a particular time. If an employer has 15 or more employees at a particular time, they are no longer a small business employer. When counting the number of employees, employees of associated entities of the employer are included. Casual employees are not included unless engaged on a regular and systematic basis. who aren’t road transport businesses.

Secondary party

Secondary parties are people, businesses or others in a road transport contractual chain who are the parties to a subsequent contract or arrangement in the chain. For example:

• transport companies
• fleet owners
• smaller logistics operators.

Under this RTCCO, a secondary party must pass on the increased amount paid to them by the primary party to the other secondary party to the contract. This could be to:

• another business (that then has to continue passing on the payment down the chain), or
• a regulated road transport contractor or a road transport employee-like worker.

This means that any increased amounts paid by primary parties must end up with the regulated road transport contractor or road transport employee-like worker so that they are compensated for any increases in fuel costs.

Secondary parties must do this:

• each fortnight, or
• twice each month.

Rate requirements

Primary and secondary parties can adjust rates by:

• changing the rate or a component of the rate
• introducing a fuel increment or levy
• making a direct reimbursement or offset of money spent on the increased cost of fuel, or
• any combination of these 3 measures.

Existing instruments

Existing rise-and-fall rates already in some workplace instruments may satisfy the RTCCO’s fuel cost requirements, including:

• in any relevant State or Territory industrial instrument
• in any relevant collective agreementAn agreement registered with the Fair Work Commission that sets out minimum terms and conditions for regulated workers. or services contractA contract for services that relates to the performance of work under the contract by an individual and has the required constitutional connection (for example, a constitutional corporation is a party to the services contract). , or
• via any ongoing or special arrangement between persons in a road transport contractual chain.

In addition, any rate changes made before 21 April 2026 can be considered when determining whether the above obligations on primary and secondary parties have been met.

When it applies

The RTCCO applies from 21 April 2026. It overrides any other minimum standards ordersThe Fair Work Commission has the power to make minimum standards orders (MSOs) for regulated workers. These are sets of rules about pay and conditions for regulated workers. MSOs are legally binding. while it’s in operation.

The RTCCO's rules on fuel costs stop applying when the weekly average national terminal gate price for diesel falls below $2 per litre. This is measured in the weekly diesel price report of the Australian Institute of Petroleum.

The Commission will review the RTCCO after one month of operation and then every 3 months.

How disputes are dealt with

Workers and businesses must first genuinely try to resolve a dispute between themselves.

If a dispute can’t be resolved this way, the dispute can be taken to the Commission.

The Commission may resolve this dispute through conciliationA conciliation is a confidential and less formal dispute resolution process between the parties to a workplace dispute at the Fair Work Commission. or mediationA voluntary and confidential process where a mediator helps parties negotiate with each other to resolve workplace complaints. , or another method it considers appropriate.

If the dispute can’t be resolved this way, the Commission may use arbitrationA voluntary and confidential process where a mediator helps parties negotiate with each other to resolve workplace complaints. instead (if both parties agree).

Parties can be represented by a union or employer association at any stage in the dispute when it’s before the Commission.

Penalties for not complying with it

Businesses and workers covered by this RTCCO have to follow its rules.

It’s unlawful to contravene the rules of an RTCCO. Courts can impose penalties against businesses, individuals or other persons if they don’t comply with one.

What you can do now

If you’re in the road transport industry, we encourage you to:

• read the final RTCCO: Road Transport Contractual Chain Order — Fuel Cost Recovery 2026
• talk to other affected businesses or workers in your road transport contractual chain to ensure that everyone understands and follows the rules set by this order
• download a copy of the Commission’s RTCCO fact sheet: Fact sheet: Road Transport Contractual Chain Order – Fuel Cost Recovery – 2026 (PDF)
• access other key documents and information from the Commission's major case page (including its decision): TWU & ARTIO application for a road transport contractual chain order – fuel cost major case (MS2026/1)
• contact your union, industry association or employer association for additional support – for contact information, see our Legal help page.

How we can help

A reminder that we’re the Fair Work Ombudsman, not the Fair Work Commission. Learn more about what we each do: Difference between the Fair Work Ombudsman and the Fair Work Commission.

Our role is to give advice and assistance on workplace rights and entitlements. We can provide advice on, monitor compliance with and enforce RTCCOs once they’re made by the Commission.

Keep up to date

To stay up to date and be notified with updates that are relevant to you, subscribe to our email updates. It only takes a few moments to sign up and will help you stay in the loop with changes to workplace laws.

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More information

Access a copy of the RTCCO: Road Transport Contractual Chain Order — Fuel Cost Recovery 2026.

Read more information about this major case from the Commission: TWU & ARTIO application for a road transport contractual chain order – fuel cost major case (MS2026/1).

Consider contacting your union, industry association or employer association for additional support. For contact information, see our Legal help page.

For more guidance about RTCCOs and the Commission, go to Regulated worker and road transport contractual chain standards.

There’s also previous information on the recent changes to the Fair Work Act to help fast-track applications for RTCCOs. Go to: Fairer Fuel: Reforms to road transport orders.