Reviews of the Road Safety Remuneration System

Latest news: Abolition of the Road Safety Remuneration System

On Monday 18 April 2016, the Australian Government introduced legislation into the Parliament to abolish the Road Safety Remuneration System, including the Road Safety Remuneration Tribunal. The legislation successfully passed the Parliament that evening and the Road Safety Remuneration System, including both Orders, ceased to operate from 12am on 21 April 2016.

The Orders are:

  • Contractor Driver Minimum Payments Road Safety Remuneration Order 2016 (Payments Order)
  • Road Transport and Distribution and Long Distance Operations Road Safety Remuneration Order 2014

For the period that the Payments Order was in effect, the Fair Work Ombudsman stated in a media release that:

Given ongoing confusion and concern surrounding the introduction of the 2016 Order, the Fair Work Ombudsman wishes to make it abundantly clear that as the Regulator charged with monitoring and enforcing compliance with the Order, it has no intention of seeking enforcement outcomes to early contraventions that may be identified. Such action would not be in the public interest.

If you have any concerns in relation to the period in which the Payments Order was in effect, please contact the Fair Work Ombudsman on 13 13 94 or visit the website.

The Government has said that it remains committed to improving safety on our roads. It has committed to redirecting the money saved from abolishing the Road Safety Remuneration System to the National Heavy Vehicle Regulator for it to work with the States and Territories to implement practical safety measures. The Government has also said that it will continue to consult with industry on what safety measures should be prioritised. 

Please see the Government’s media release on abolishing the Tribunal.

Release of review reports and consultation

Two independent reviews of the Road Safety Remuneration System were released on 1 April 2016. 

The most recent round of consultations on the Road Safety Remuneration System has now concluded. If you would like further information, please email RSRReview@employment.gov.au.

2014 Review of the Road Safety Remuneration System

The Government made a commitment before the last election to review the Road Safety Remuneration System. This review was conducted by Mr Rex Deighton-Smith of Jaguar Consulting and was completed in April 2014. 

The Review was guided by the Terms of Reference.

The review involved examining the available academic literature, safety data and existing regulatory and policy settings. It was also informed by a consultation process. A total of 26 written submissions were received and nine organisations participated in direct consultations. Stakeholders included relevant state and Commonwealth government authorities and departments, academics, industry and employer associations, employee organisations, owner driver representatives and employers/hirers. Submissions can be viewed at the Submissions website.

The 2014 Review report is available.

2016 Review of the Road Safety Remuneration System

The Road Safety Remuneration Act 2012 (RSR Act) required a review of its operation be conducted in the second half of 2015. The review was conducted by PricewaterhouseCoopers (PwC) and completed in January 2016 to account for the Road Safety Remuneration Tribunal’s most recent order issued on 18 December 2015.

The review examined the extent to which the Tribunal has fulfilled its functions and the objects under the RSR Act. This involved assessing the current and future impacts of the Tribunal’s first two road safety remuneration orders, considering the effectiveness of the Tribunal’s processes, and undertaking a cost benefit analysis of the Road Safety Remuneration System.

PwC consulted directly with 17 parties including state based government authorities and departments, the Fair Work Ombudsman, industry associations, employee organisations, owner driver representatives and employers/hirers. The Fair Work Commission and the Tribunal also made written submissions. Additionally two surveys were conducted – one for industry stakeholders and one for employee and contractor drivers in the sector. A total of 206 survey responses were received. 

The 2016 Review report is available.