New Fuel Cost Recovery Order: What Every Business in Australia’s Transport Supply Chain Must Do Now

The order is called the Road Transport Contractual Chain Order – Fuel Cost Recovery 2026 (RTCCO). It was made by the Fair Work Commission (FWC) in response to dramatic fuel price increases caused by conflict in the Middle East. It is legally binding. Non-compliance can result in civil penalties.

This article explains what the order requires, who it applies to, and what you need to do right now.

What happens if you do nothing?

The RTCCO is not optional. It overrides any existing contractual arrangements that don’t meet its minimum requirements.

If you are a manufacturer, retailer, construction company, or any business that sits at the top of a road transport supply chain, you are likely a “primary party” under the order. That means you have a legal obligation to adjust rates paid to your transport providers.

Businesses that fail to comply face:

• Civil liability for breaching a legally enforceable FWC order
• Disputes referred to the Fair Work Commission
• Reputational damage with transport providers and industry bodies

Does the new fuel order apply to my business?

The RTCCO applies broadly. It covers all work in the road transport industry (except cash in transit). You are likely affected if you:

• Are a manufacturer, supplier, large retailer, or construction company that uses road freight
• Are a transport company, logistics business, or fleet operator
• Use owner-drivers or subcontractors to deliver goods
• Operate a digital labour platform through which transport workers perform work

Small fleet operators, owner-drivers, and employee-like workers who perform digital platform transport work are among those the order is designed to protect.

What is a road transport contractual chain?

A contractual chain is a series of contracts under which transport work is performed. For example:

• A retailer contracts with a logistics company to deliver goods
• The logistics company subcontracts that work to an owner-driver

Every link in that chain is covered by the RTCCO. Each party must ensure the next party down the chain can recover increased fuel costs.

What does a rise and fall clause look like?

A rise and fall clause (also called a fuel escalation clause) is a contract term that automatically adjusts the rate paid for transport services in line with fuel price movements.

If your contract has one, check whether it:

• Uses a recognised fuel price benchmark (such as the Australian Institute of Petroleum weekly diesel report)
• Triggers adjustments at least fortnightly
• Calculates the adjustment from 6 March 2026 as the baseline

If your existing clause does all of this, it is likely to satisfy the RTCCO. If it does not, it needs to be updated.

How our lawyers can help

Our employment and commercial lawyers can help you respond to the RTCCO quickly and confidently. We can:

• Review your existing contracts to assess whether they already satisfy the RTCCO
• Draft or update rise and fall clauses and fuel levy provisions
• Advise on your obligations as a primary or secondary party in a supply chain
• Represent you in FWC proceedings if a dispute arises with a counterparty
• Monitor the FWC’s reviews and advise you of any changes to the order

Conclusion

The RTCCO is already in force. If your business sits anywhere in a road transport supply chain – whether you are at the top commissioning freight, or in the middle subcontracting it – you have obligations under this order.

Contact our team today to review your contracts and ensure you are meeting your obligations under the new fuel cost recovery order.