On 10 April 2026, the Minister for Employment and Workplace Relations released the Fair Work (Emergency Application – MS2026/1) Determination 2026, declaring MS2026/1 to be an emergency application for a time-sensitive road transport contractual chain order (RTCCO). If approved, this order is likely to have significant implications for all businesses and workers involved in a road transport contractual chain.
Background
Under the Fair Work Act 2009 (FW Act), the Fair Work Commission can make an order to set minimum standards for persons in a road transport contractual chain, including for regulated road transport contractors and road transport employee-like workers.
Prior to granting an order, the Commission is obliged to ensure that any significant changes to the order are considered by the relevant persons during a consultation period of no shorter than 12 months (the consultation period).
Once granted by the Commission, the RTCCO will come into operation on the day specified in the order, however this day must not be earlier than 12 months after the draft order was published.
Legislative changes
On 2 April 2026, new provisions introduced by the Fair Work Amendment (Fairer Fuel) Bill 2026 (the Bill) concerning the application for and operation of RTCCOs took effect. The Bill was rushed through both houses of Parliament in response to the national fuel crisis caused by the conflict in the Middle East and the reduced movement of oil through the Strait of Hormuz, and its impact on road transport workers.
The Minister for Employment and Workplace Relations now has the power to make a determination that an application for a RTCCO is an “emergency application”. This power can be exercised where the Minister is satisfied there is an event that has a significant national negative impact on the road transport industry, and it is in the public interest to make the determination.
A RTCCO that is granted from an emergency application will be referred to as a time-sensitive RTCCO.
If significant changes are made to a draft time-sensitive RTCCO, the Commission can reduce the consultation period from 12 months to another period it considers reasonable. Additionally, the Commission can reduce the 12-month period for the time-sensitive RTCCO to come into operation to another shorter period.
Accordingly, an application for a RTCCO can now be heard, determined and come into operation with significantly less time than prior to the recent legislative changes if the Minister determines it to be an emergency application.
New powers in practice
On 2 April 2026, the Transport Workers’ Union of Australia and the Australian Road Transport Industrial Organisation lodged an emergency application for a RTCCO.
After accepting submissions from interested parties, on 10 April 2026 the Minister determined to make this an emergency application. The application is the test case for the scope of the new powers introduced by the Fairer Fuel Bill.
If granted in its current form, application MS2026/1 will apply to the relevant parties (including but not limited to road transport businesses, their employees and contractors) in road transport contractual chains involving the performance of work in the road transport industry.
While the Commission is currently considering submissions from opposing parties, an order is expected to be made on 20 April 2026 and will set obligations on primary parties in the contractual chain to adjust the rate they pay to secondary parties for the performance of work in the road transport industry by the amount necessary to ensure the secondary party fully recovers the increased cost of fuel. This same obligation will apply to secondary parties in relation to the pay of workers.
Primary parties are also obliged to take all reasonable steps to ensure that secondary parties adjust pay as necessary for full cost recovery of fuel.
These adjustments to pay may be made by an adjustment to the rate, the introduction of a fuel increment or levy, or a direct reimbursement of money expended upon the increased cost of fuel.
Key takeaways
While the Commission is considering submissions from opposing parties on MS2026/1 which may introduce changes to the application’s draft order, it is expected to grant the order substantially based on its application on 20 April 2026, due to the financial significance of this date within the road transport industry.
The order will likely cover all persons involved in road transport contractual chains. Road transport businesses and persons should carefully evaluate their fuel cost risk under their contractual chain and comprehensively consider how their obligations in relation to fuel cost recovery will be affected by MS2026/1.
How can we help?
Kyle Gillan, Principal in our Corporate and Commercial team, and Kelly Ralph, Special Counsel from our Workplace Relations, Employment and Safety team, will be holding a complimentary webinar for clients on Thursday 30 April. To learn more and RSVP, click here
Please reach out to Kyle or Kelly if you need any advice on this issue.
Written with assistance from Alannah Hill, Law Graduate.
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