Media Release - Local government calls for a long-term commitment on the Heavy Vehicle Motor Tax

On behalf of the state’s 29 councils, the Local Government Association of Tasmania (LGAT) welcomes the recognition in today’s state budget that councils deserve a fair share of the Heavy Vehicle Motor Tax. But this funding commitment must be locked in for the longer term to enable councils to plan and budget effectively.

LGAT President Mayor Mick Tucker said that while the State Government collects around $30 million per year from the tax, it only provides $1.5 million to local government, despite councils managing 80%, some 14,400 kilometres, of Tasmania’s road network.

“Our ask has always been simple, that the State Government distribute the revenue collected among all road managers on the same basis it is charged – on-road use,” Mayor Tucker said.

“Today’s budget announcement of an increase in local government’s share of the Heavy Vehicle Motor Tax for next year goes part way to restoring this balance, but a permanent change to the distribution methodology that accounts for inflation and heavy vehicle usage is what our sector desperately needs.”

We look forward to working with the Minister on developing a long-term solution.