Media Release - Local government welcomes the commitment to a fairer share of Heavy Vehicle Motor Tax

On behalf of the state’s 29 councils, the Local Government Association of Tasmania (LGAT) welcomes the support to local government in the state budget that will ensure safe and productive local roads.

LGAT President and Break O’Day Council mayor Mick Tucker said councils have been asking for a fairer share of the Heavy Vehicle Motor Tax for many years.

“Despite the State Government collecting around $30 million per year, it only provides $1.5 million to local government, even though councils manage 80%, some 14,400 kilometres, of Tasmania’s road network,” Mayor Tucker said.

“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.

“Today’s budget announcement of a one-off increase in local government’s share of the Heavy Vehicle Motor Tax goes a long way to restoring this balance.”

Our sector welcomes the immediate increase to $5 million per year and looks forward to working with the Government on a distribution methodology that accounts for inflation and heavy vehicle usage.