1. Purpose

The purpose of this Member Update is to advise GTA Members of the Road Transport Contractual Chain Order (RTCCO), implemented by the Fair Work Commission on 21 April 2026 and updated on 28 April 2026.

2. Background

The Fair Work Commission (FWC) has implemented an urgent Road Transport Contractual Chain Order (RTCCO), effective 21 April 2026.

The RTCCO introduces requirements for fuel cost recovery across road transport contractual chains in response to recent increases in fuel prices. This is a legal requirement, not a commercial option.

Full details are available on the Fair Work Commission website.

3. Key Points

The RTCCO requires increased payments across road transport contractual chains to reflect rising fuel costs.

It applies broadly to providers of road transport services, including small fleet operators, owner-drivers and digital platform workers.

The order applies across the full contractual chain. Primary parties to the initial contract (which may include a freight/delivery element) are responsible for initiating fuel cost adjustment discussion and taking reasonable steps to ensure this flows through the chain, while downstream participants (secondary parties), including transport operators and subcontractors, must pass on any increases received. Small non-transport businesses (fewer than 15 employees) are not required to ensure downstream compliance but may still be commercially impacted.

Existing commercial agreements, such as ‘rise and fall’ provisions, may satisfy the RTCCO requirements where already in place.

The FWC will review the order in late May 2026 and at three-month intervals thereafter.

4. What This Means For The Grain Industry

The application of the RTCCO across the grain supply chain and existing commercial trading tools remains uncertain.

GTA has started a review of the potential impact across traditional delivered grain contracts and freight services contracts. While the intent of the RTCCO is to ensure freight providers are not disadvantaged by increased fuel costs, its application within delivered grain contracts presents complexity. This includes the interaction between fuel cost increases and commodity price movements, as well as differing methods of accessing freight markets (e.g. spot versus fixed contracts).

5. Next Steps

GTA will continue to monitor developments and provide further guidance as the application of the RTCCO becomes clearer.

As these changes can apply to existing contracts, in the interim, all parties involved in road freight (not just transport operators) should review and consider their individual contractual arrangements in line with the guidance available from the FWC website and seek legal or commercial advice where required.

Maintaining appropriate documentary evidence may assist in supporting any negotiations or claims arising under the RTCCO.

Download PDF