Employers in Western Australia are facing sustained pressure from rising fuel costs and supply disruptions, with flow-on impacts on operating costs, investment decisions and workforce retention.
As a CCIWA Member, you have unlimited access to our Employee Relations Helpline on 9365 7660 or [email protected], providing expert support for all your employment relations needs. Our team offers timely, practical advice tailored to your circumstances, along with access to current industrial relations information and guidance.
Fuel costs and shortages
Fuel costs remain high, with WA households spending about $20 or more per week on fuel compared to previous years. While supply shortages have eased, increased fuel prices continue to weight heavily on businesses.
The WA Government has annnounced a $100 Fuel Support Payments for drivers, available via the ServiceWA app from July 1, aimed at easing cost-of-living pressures.
A recent CCIWA survey found fuel shortages had directly impacted almost half (45%) of businesses across WA, with 31% of participants describing the impact as “significant” or “severe,” and just 7% having “no impact.” Around 430 business participated in CCIWA’s survey, with 83% of participants confirming supplier costs had increased.
Impact to businesses
On April 20, the Fair Work Commission (FWC) issued the Road Transport Contractual Chain Order – Fuel Cost Recovery 2026 following an emergency application by the Transport Workers’ Union and Australian Road Transport Industrial Organisation. This came into effect on April 21, 2026.
While not all businesses are directly covered by the order, many will feel the downstream effects, including:
- Fuel surcharges on transport invoices
- More frequent price adjustments from freight providers
- Higher logistics and delivery costs
- Flow‑on price increases from suppliers who rely on road transport
Managing the workforce
Some employers are considering introducing temporary fuel allowances. While this is permitted, it is discretionary and should be clearly documented. Without clear parameters or an end date, allowances may become an implied term of the employment contract.
Employers should:
- Confirm the purpose and amount of any allowance in writing
- Set a clear end or review date
- Follow through on any review commitment
At this stage, there is no legal requirement to increase vehicle allowances under Modern or State Awards.
Working-from-home arrangements or increasing the days which employees are able to work from home are also being considered to reduce commuting costs.
Employers offering work-from-home arrangements should ensure policies are up to date and expectations are clearly defined, including performance and conduct standards.
Work, health and safety obligations remain critical. Employers should ensure home environments are safe, including risk assessments and appropriate ergonomic set-ups.
How CCIWA can help
To find out more information, or for tailored advice, call the Employee Relations Helpline on 08 9365 7660 or email [email protected].
