Key changes proposed 

• At a high level, the Commission seeks to introduce the following key changes to the RTCCO, as proposed in the Draft Order:
   
• expands the rate adjustment obligation (clauses 4.1 and 4.4) by requiring parties to “adjust or set” rates (not just adjust existing rates), including for new contracts or arrangements entered into after 6 March 2026, making clear that the obligation applies even where no pre‑existing rate adjustment mechanism exists;
   
• clarifies compliance pathways for primary parties (clause 4.2) by expressly allowing primary parties to satisfy their obligation by ensuring downstream parties comply via clause 4.1 or 4.4 mechanisms, and linking that obligation directly to the permitted methods of adjustment in clause 4.6 (rather than imposing a separate adjustment obligation under clause 4.2);
   
• narrows and clarifies the small business carve‑out (clause 4.3) so that it only applies where a primary party is a small business employer, and is not a road transport business and does not engage contractors, employee-like workers or employees to perform road transport work;
   
• clarifies how existing contractual mechanisms can be used to comply (clause 4.6) by confirming that adjustments under industrial instruments can occur at the times or intervals specified in those instruments, and requiring that contractual “rise and fall” or benchmarking adjustments are implemented at least fortnightly (or twice monthly) to avoid less frequent adjustment mechanisms being relied upon;
   
• updates when the RTCCO will cease applying (clause 5.3), requiring that the RTCCO will cease to apply when diesel prices fall below $2.00 for four consecutive weeks, and that obligations will cease only after the fourth consecutive week; and 
   
• makes a minor clarification to clause 5.3 by refining the wording from “operate” to “operate/apply”, to more clearly tie cessation to the application of the clause 4 obligations.
   
• We note that the Draft Order does not address some of the key questions about primary parties and employee-only chains. However, the Commission has flagged that there are still some matters it will further consider and that it may release a further varied Draft Order in due course. 

Next steps

As highlighted above, during the consultation period on the Draft Order, affected parties have until 4pm on 12 June 2026 to lodge any submissions responding to those already filed with the Commission. 

We expect that the Commission will consider submissions and responses and determine any further proposed variations to the Draft Order, with a view to ultimately updating the RTCCO. 

We will continue to monitor developments closely and will provide a further update as matters progress.