In September 2024, Australian transport ministers approved changes to the Heavy Vehicle National Law (HVNL), based on recommendations from the National Transport Commission (NTC) outlined in the Reforms to Heavy Vehicle National Law Decision Regulation Impact Statement. Frontier Economics assisted the NTC to draft an earlier Consultation RIS assessing these and other reforms to the HVNL.
Below, our Economist, Anna Wilson, who leads our Transport Economics practice, unpacks how the upcoming changes will drive more efficient outcomes across our road network.
Current general limits on larger trucks are causing administrative burdens
The changes to the HVNL include increases to general mass limits for trucks. Under the current HVNL, a truck’s access to public roads is dependent on their mass and dimensions. Vehicles within specified mass and dimension limits have as-of-right, general access to the road network, while larger heavier trucks need authorisations/permits for road access.
Existing access arrangements are a pinch point for industry. Advances in vehicle design have enabled larger, heavier, trucks to operate more safely than before, and to move freight more efficiently. However, the time and effort involved in securing access to the road network for these larger, but more restricted, vehicles has imposed significant administration and compliance costs on heavy vehicle operators and potentially delayed the fleet from being upgraded.
Around 15% of the heavy vehicle fleet are restricted access vehicles. The average age of these vehicles is typically between 12 -16 years as compared to 11 years for passenger vehicles.
The changes agreed by Ministers expand the limits for general access. With fewer vehicles required to apply for permits the administrative burden on operators and road agencies would be reduced.
Bigger trucks, fewer trips, more efficiency
Whilst the changes to the HVNL will increase truck size, it is also expected to give rise to substantial benefits for the Australian community more broadly, from a switch towards more efficient, larger vehicles.
The NTC’s analysis suggests this policy change will mean fewer truck movements will be needed to meet Australia’s freight task. Which is expected to result in productivity or efficiency benefits, reduced emissions and reduced pollution (air and noise).
Excerpt from "Reforms to Heavy Vehicle National Law Decision Regulation Impact Statement" highlighting current challenges:
The current minimum noxious emission standard for new heavy vehicles in Australia is based on the international standard commonly known as Euro V. However, the Australian Government has recently adopted a new Australian Design Rule 80/04, mandating Euro VI standards for all newly approved heavy vehicle models supplied from 1 November 2024, and all existing models supplied from 1 November 2025, to reduce noxious emissions from the road transport sector.
Newer trucks that meet Euro VI standards are heavier than equivalent Euro V trucks due to the additional mass and space required by the upgraded emission systems, which may include batteries or storage tanks (e.g., natural gas, hydrogen, diesel emission fluid e.g., AdBlue). Under current general mass limits, this higher tare weight (unladen weight) may reduce the amount of freight that heavy vehicles can legally carry, which impacts on productivity and profitability of advanced emissions vehicles. Euro VI compliant vehicles include zero emission vehicles such as battery electric and hydrogen fuel cell vehicles.
Much of the challenge in improving heavy vehicle access is related to engineering constraints and ageing bridges and pavements. However, the NTC expects that the benefits of the reform will exceed any downside. This is also not expected to come at a cost to safety, given improvements in vehicle design and with fewer truck movements expected.
These policy changes build upon substantive earlier policy analysis and consultation undertaken with transport agencies, police, local governments and industry stakeholders.
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