As Australia’s largest association representing thousands of road freight transport businesses, National Road Transport Association (NatRoad) advances the interests and major issues for this $96 billion industry and its members. Our board is made up of individuals who run transport businesses and have members from owner-drivers to road freight and large fleet operators, representing all aspects of the industry. Recognised as a leading voice for industry, we work with government, industry, members, and partners to improve the working environment for all road freight transport operators.
NatRoad acknowledges the strategic review undertaken by the Department of Employment and Workplace Relations (the Department) of the Australian Apprenticeship Incentive Scheme resulting in a recommendation to move to a principles-based methodology for the priority list to better align with the government’s economic priorities and social equity objectives.
In 2024, NatRoad undertook a global IRU truck driver shortage survey that reported 38% of businesses expected to experience more difficulty in filling positions in the next 12 months.
In 2024 Industry Skills Australia (ISA) delivered a Workforce Plan for Transport and Logistics which identified key focus areas and recommendations. Several immediate priorities and actions are yet to occur to address truck driver shortages and are identified as priorities in the 2025 plan1, as such it is recommended any additional resources identified by ISA should be allocated.
In road transport alone there is a driver shortage of over 26,000 unfilled positions and road freight is projected to increase by 77% by 2050. Road freight accounts for approximately 80% of non-bulk domestic freight, i.e. consumer goods.2
In Attachment A, NatRoad details a Policy Statement ‘National Leadership to Address the Truck Driver Shortage’, which demonstrates broad alignment to the Consultation’s objectives.
In response to the Discussion Paper’s Questions:
What, in your view, should be the core purpose and scope of the Priority List?
The core purpose of the Priority List should be to identify key occupations experiencing skills shortages and be flexible enough to address emerging shortages. The priority list should include occupations that are critical to Australia’s economic prosperity and address the social equity objectives of the government.
The priority list should be resistant to lobbying by non-essential industries as identified in the Discussion Paper, notably occupations that do not have demonstrable public benefit.
How should Australia’s economic and social equity objectives be defined?
What is the best option to articulate Australia’s economic and social equity objectives to guide the Priority List? E.g. NSA, the National Agreement on Closing the Gap, Employment White Paper or other?
NatRoad is of the view Australia’s economic and social equity objectives are defined over multiple channels, with multiple agencies and departments having responsibility for segments. This creates confusion and dilutes the ability for the Government to identify key priorities. In the current context several publications would provide relevant guidance to the Priority List including:
National Skills Australia, noting NatRoad’s comments regarding the 2024 Industry Skills Australia Workforce Plan for Transport and Logistics
National Agreement on Closing the Gap influences policy on indigenous employment participation and issues facing regional and remote communities
Employment White Paper does not explicitly mention heavy vehicle operators however industry can support the Government objectives in decarbonisation, infrastructure and regional development. It is important to note, freight touches all parts of the economy, including the critical industries identified such as aged care and medical
National Food Security Preparedness Green Paper treats food security as a national security imperative and highlights vulnerabilities in supply chains, distribution, infrastructure, trade dependencies, and critical inputs like fertilisers, agricultural chemicals, fuel, and digital/telecom connectivity
Future Made in Australia (FMiA) is largely framed around advanced manufacturing, clean energy, and sovereign capability, road transport is an essential enabler of every FMiA priority sector. Freight and logistics underpin the national interest goals of supply chain resilience, regional industrial development, and emissions reduction — all of which have workforce and training implications that DEWR’s revised methodology will need to capture
2024 National Defence Strategy (NDS), Defence Strategic Review (2023), and the Integrated Investment Program (2024–2034) mark a shift from traditional defence to a “national defence” concept, meaning a whole-of-economy readiness, including critical transport, logistics, and supply-chain capacity. Defence no longer views security as just military capability — it’s about sovereign industrial capacity, domestic supply lines, and resilient national logistics. Road transport is the physical backbone of all those systems.
Is it feasible to consider macro-economic conditions in determining eligibility?
Labour demand is cyclical: Economic conditions (e.g. infrastructure investment cycles, agricultural output, health sector growth) drive demand for skilled workers. Linking eligibility to macroeconomic signals can make the list more responsive.
NatRoad highlights the demand for freight is increasing with current vacancy rates for heavy vehicle sitting at over 26,000 and expected to increase to over 78,000 by 20293. Road freight touches every part of the economy.
As part of considering macro-economic conditions there is a need for forward planning and modelling, apprenticeships take years to complete. Anticipating skills needs during economic expansion or contraction ensures supply lines of skilled labour are better aligned with future demand. Apprenticeship and training pathways need to be flexible and adaptable allowing participants to achieve required competencies in condensed timeframes and in response to changing industry requirements.
Further, consideration of macroeconomics allows for policy coordination and alignment with other government priorities (budget settings, regional development, productivity strategies).
Would it be appropriate to remove eligibility for occupations with low wage premiums and /or persistent levels of non-compliance with workplace laws? Would there be any perverse outcomes as a result?
NatRoad is of the view a balanced approach is required ensuring incentives are passed onto employees and managing compliance risks. Additionally, non-compliance needs to be addressed, regardless of industry, any punitive action taken against the employer needs to be balanced against the risk to the employee. Apprentices should be taken on for the duration of their apprenticeship, with incentives for employers to support employees during times of low activity, this could be through additional training hours or other upskilling opportunities. Caution should be taken with employers who take on apprentices solely for the purpose of attracting incentives and not providing genuine ongoing employment and meaningful work opportunities.
To what extent should the Incentive System be able to flex up and down (i.e. quantum and eligibility) in response to shifting economic conditions and how might this be balanced with ensuring objectivity and certainty?
The incentive scheme should flex up or down dependent on economic conditions, noting the scheme needs to be flexible and adaptive to existing and emerging shortages.
As previously noted, there is a need to anticipate skills during economic expansion and contraction to ensure supply lines of skilled labour are better aligned with future demand.
If the Incentive System is able to flex up and down, how often should settings be reviewed to ensure appropriate adjustments are made?
NatRoad details proposed review protocols in response to question 4.
What is the most effective process for identifying and making updates to the Priority List, and at what frequency?
NatRoad proposes the following review protocols:
Annual updates (predictable, stable baseline)
Extraordinary updates (case-by-case, with strict criteria)
Major methodology review every 3–5 years to ensure the framework itself keeps pace with structural changes in the economy.
The review of the Scheme should consider retrospective and emerging trends and planning for future requirements.
Relevant to the review is the Jobs and Skills Australia (JSA) Sector Workforce Plans, with Transport and Logistics Plan released by ISA annually.
Should occupations with viable non-apprenticeship pathways have access to incentives?
Consideration should be given to conditional access to the Scheme to allow incentives for occupations with non-apprenticeship pathways, but only if there’s evidence that apprenticeships deliver additional workforce benefits (e.g. better retention, regional access, stronger completion rates). Incentive levels could be differentiated however this would need to be done in consultation with industry.
These occupations should be subject to a periodic review to assess if the incentives are still adding value and addressing the requirements of industry.
The Heavy Vehicle (HV) licencing system is long overdue for reform, currently HV licencing is time-based and industry acknowledges the need to shift to a competency-based program to ensure drivers can handle the complexities of a large truck on Australian roads.
Reform licensing and training
The industry needs to move towards a competency-based approach, where drivers are tested on their ability to handle a vehicle in different conditions, not just how long they’ve held their license. The process needs to ensure that drivers are gaining the right experience before moving up to larger vehicles.
Austroads review of the National Heavy Vehicle Driver Competency Framework reported shortcomings with the current competency standards and training and assessment pathways:
Drivers are not sufficiently skilled for employment when they are first licensed
Coroners’ inquests have identified deficiencies in the skills of some truck drivers
Significant variation in the length of training and assessment programs, including some very short courses.
Additionally, not all states and territories require drivers to complete training.
Licensing in all jurisdictions should require nationally based training that focuses on practical outcomes to obtain a license. This should also apply to overseas drivers, who need to undertake Australian training to ensure they understand our vehicles, road network, and related rules. Training is essential for a safer and efficient industry.
An example of a viable non-apprenticeship pathway is the recently introduced competency-based training requirement for Heavy Rigid (HR) and Heavy Combination (HC) licence holders to transition to a Multi-Combination (MC) licence in South Australia.
The South Australian Example4
Drivers wishing to upgrade to a MC licence are required to apply to the SA Department of Transport and Infrastructure Multi-Combination Licence Program with their employer’s support before being issued a learner’s permit for the MC licence. Once approved, candidate drivers are required to complete a competency-based training course through an approved Registered Training Organisation before logging a minimum number of training hours and learning components with a qualified supervising driver.
The candidate driver must complete the course with an approved South Australian RTO.
The candidate driver will not take the final driving assessment at this stage. Before taking the final driving assessment, they will need to complete:
at least 50 hours if they are an HC licence holder
at least 60 hours if they are an HR licence holder
all required learning components outlined in the MC Companion5, noting if a candidate driver only holds an HR licence, they must complete all HC competencies with an approved South Australian RTO. They must do this before taking the MC competency-based training course.
This example of a non-apprenticeship pathway would greatly assist in skilling up drivers to meet Australia’s growing demand and increasing shortfall in suitably skilled and qualified heavy vehicle drivers. All states and territories should adopt the South Australian approach, and consideration should be given to other classifications heavy vehicle licences. Competency based training can also address age restrictions and limitations placed on young people wanting to enter the heavy vehicle industry.
How can the Priority List capture and support new and emerging occupations or apprenticeship pathways?
National Truck Driver Apprenticeship
With a shift to competency-based training, there should be national commitment to implementing the National Truck Driver Apprenticeship. National Cabinet must encourage and ensure all states commit to delivering the national truck driving apprenticeship. As part of this, consideration must be given to competency-based licencing, as current age restrictions are a barrier to entry for school leavers. As we’ve seen in Queensland, participants have a significant increased chance of success when completing Certificate III as part of an apprenticeship rather than a stand-alone VET course.
There is also the opportunity for dual apprenticeships, drawing upon funds from the underutilised Clean Energy Apprenticeship fund6 to address shortages in adjacent occupations such as mechanics.
National Heavy Vehicle Skills Hub
There is a dire need to address the gap in information for entry into the heavy vehicle industry and governments should fund and work with industry partners to deliver a National Heavy Vehicle Skills Hub, in line with the National Rail Skills Hub.
Should the Priority List have a jurisdictional or regional element to it?
When considering priorities DEWR should align with the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Regional Investment Framework7.
Should government take a narrower approach to the Priority List to better target incentives to the most critical priorities and shortages?
In addition to previous recommendations, NatRoad proposes the following to further address critical priorities and shortages in the road freight, particularly to address attraction and retention of diverse employment groups:
Introduce Training Incentives
The NatRoad IRU truck driver shortage survey shows that larger freight businesses have had limited success in improving the diversity of the workforce, which is critical to addressing skills shortages8.
The largest businesses (200+ employees) report a driver workforce with women making up 12 percent (compared to an industry average of 6.5 percent) and 8 percent of drivers aged under 25 (compared to an industry average of 5.2 percent). The ability of larger businesses to run recruitment, training and diversity programs is having an impact by increasing workforce diversity, although it should be noted that 70 percent of these businesses still face severe or very severe shortages.
Small businesses do not have the same access to training, and all businesses operate on tight profit margins. Introduction of improved training incentives would better enable industry to support new employee training.
NatRoad has long advocated for the need to provide incentives for small to medium businesses for training, this will incentivise the onboarding of apprentices and trainees, for both drivers and supporting trades such as mechanics. Beyond this providing training incentives will assist in building a diverse and skilled workforce.
Should the Priority List identify different types of occupation shortages (i.e., attraction, completion or retention gaps) so that incentives can be tailored accordingly?
NatRoad recommends the creation of a National Truck Driver Standard to address attraction, completion and retention gaps:
Safer drivers result in safer roads, and better recognition of skills is important for improving industry image and attraction.
Clear and concise information is vital. Industry, employers, employees and aspiring drivers need clarity about best practice to inform training and hiring decisions.
Australia has a collection of imprecise pathways for drivers. Some courses lack quality, and there is limited availability of the apprenticeship. More Registered Training Operators (RTO’s) are required with national quality standards in place.
We need a National Truck Driver Standard – a clear, nationally-consistent and competency-based standard that represents best practice for training truck drivers. There should be multiple pathways to achieving the standard, including the apprenticeship, the Certificate III in driving operations, quality industry-based programs and competency-based pathways.
The current Priority List methodology is focused on OSCA Major Groups 3 (Trades and Technicians) and 4 (Community and Personal Service Workers), should this be expanded to other Major Groups and on what basis?
NatRoad agrees the Priority List should allow expansion selectively into other Major Groups on the following basis:
There is clear evidence of national skill shortages not being addressed by existing education pathways
Training pathways are viable, recognised, and scalable into the occupation.
Industry demonstrates commitment to training through for example co-funding, structured programs and commitment to attracting diverse candidates
Non-apprenticeship pathways are also included provided they are focussed on competency based training and enable employees to rapidly and adaptively upskill to face critical shortages.
Next Steps and Consultation
NatRoad look forward to further engagement in this consultation process and maintain the need for clear, actionable and measured recommendations endorsed by National Cabinet. Australia’s productivity continues to fall, and the road transport industry continues to face significant pressure, not only for skills but increased, disjointed regulation and lack of national harmonisation, putting further pressure on margins and pushing operators out of the industry entirely.
NatRoad’s detailed position can be found in Attachment A. NatRoad welcomes the opportunity to discuss our recommendations and policy statement on Truck Driver Shortage as it relates to the Department’s Discussion Paper.
Attachment A
National leadership to address the truck driver shortage
NatRoad Policy Statement
Australia’s truck driver shortage is an urgent economic crisis.
Road freight is projected to increase by 77 percent from 2020 to 2050.9 We already face a driver shortage of over 26,000 unfilled positions. If trucking stops, Australia stops.
Heavy vehicles are the backbone of our nation. The heavy vehicle industry not only sustains our quality of life, but underpins Australia’s prosperity and international influence, providing essential support to our community and the world in times of need.
– NHVR, Draft Heavy Vehicle Productivity Plan 2024 – 2029
In the pandemic Australians experienced what happens when supply chains buckle – supermarket shelves are empty and the essential goods we take for granted do not show up.
NatRoad – International Road Transport Union (IRU) truck driver shortage survey
In 2024, NatRoad brought the global IRU truck driver shortage survey to Australia for the first time. With strong engagement from industry, the survey has quantified the size of the challenge we face in Australia.
IRU truck driver shortage survey outcome: Australia
Q: How much difficulty are you having to fill driver positions due to the shortage of drivers? Driver shortage difficulties
Company size (# employees) Very severe difficulties Severe difficulties Moderate difficulties Minor difficulties No difficulty Severe or very severe difficulties 1-4 26% 16% 18% 8% 32% 42% 5-20 13% 35% 35% 13% 4% 48% 20-199 21% 29% 38% 7% 5% 50% 200+ 40% 30% 30% 0% 0% 70% TOTAL 23% 26% 30% 8% 13% 49%
Q: Compared to this year, how much difficulty do you expect to have next year in filling driver positions due to the shortage of drivers? Driver shortage difficulties next year Company size (# employees) More difficulties Same level of difficulties Less difficulties 1-4 34% 47% 18% 5-20 48% 48% 4% 20-199 31% 62% 7% 200+ 60% 30% 10% TOTAL 38% 51% 11%
2024 (average and by company size in # of employees) Weighted average 1-4 5-20 20-199 200+ Driver shortage (unfilled positions) 13% 17% 16% 11% 7% Women drivers 6.5% 8% 6% 5% 12% Young drivers 5.2% 6% 1% 6% 8% Old drivers > 55 Y 47% 55% 42% 45% 46% Average age 49 49 48 51 46 Foreigners 10% 3% 13% 11% 14% 2024 unfilled truck driver positions: 26,049
Our proposed National Road Freight Workforce Action Plan
Addressing this economic crisis requires multiple reforms from multiple governments. Co-ordinated action and leadership from National Cabinet is imperative. NatRoad proposes a National Road Freight Workforce Action Plan with eight key elements:
Create a national truck driver standard
Safer drivers result in safer roads, and better recognition of skills is important for improving industry image and attraction.
Clear and concise information is vital. Industry, employers, employees and aspiring drivers need clarity about best practice to inform training and hiring decisions.
Australia has a collection of imprecise pathways for drivers. Some courses lack quality, and there is limited availability of the apprenticeship. More Registered Training Operators (RTO’s) are required with national quality standards in place.
We need a National Truck Driver Standard – a clear, nationally-consistent and competency-based standard that represents best practice for training truck drivers. There should be multiple pathways to achieving the standard, including the apprenticeship, the certificate III in driving operations, quality industry-based programs and competency-based pathways.
Implement the national truck driver apprenticeship
The apprenticeship was announced with great fanfare, but delivery has fallen significantly short. National Cabinet must show leadership and drive the adoption and delivery of the apprenticeship throughout the states and territories. As part of the Action Plan, each jurisdiction should commit to driving the adoption, delivery and promotion of the apprenticeship with clear resourcing and national consistency.
Create a national heavy vehicle skills hub
There is a clear information gap about career pathways into the road freight industry, and advice for both employers and prospective employees about training opportunities and support.
Governments have sought to address similar issues in rail by developing a National Rail Skills Hub. Funded by governments, the hub works closely with industry partners.10 In particular, it includes information about a range of career pathways into the rail industry.
The proposed National Heavy Vehicle Skills Hub is an opportunity to improve access to quality information about the apprenticeship and other training opportunities and incentives.
Introduce training incentives
The NatRoad IRU truck driver shortage survey shows that larger freight businesses have had limited success in improving the diversity of the workforce, which is critical to addressing skills shortages.
The largest businesses (200+ employees) report a driver workforce with women making up 12 percent (compared to an industry average of 6.5 percent) and 8 percent of drivers aged under 25 (compared to an industry average of 5.2 percent). The ability of larger businesses to run recruitment, training and diversity programs is having an impact by increasing workforce diversity, although it should be noted that 70 percent of these businesses still face severe or very severe shortages.
Small businesses do not have the same access to training, and all businesses operate on tight profit margins. Introduction of improved training incentives would better enable industry to support new employee training.
Reform licensing and training
Time-based licensing needs reform. Just because a driver has held a license for a set period doesn’t mean they’re capable of handling the complexities of a large truck on Australian roads. The industry needs to move towards a competency-based approach, where drivers are tested on their ability to handle a vehicle in different conditions, not just how long they’ve held their license. The process needs to ensure that drivers are gaining the right experience before moving up to larger vehicles.
Austroads review of the National Heavy Vehicle Driver Competency Framework reported shortcomings with the current competency standards and training and assessment pathways:
Drivers are not sufficiently skilled for employment when they are first licensed
Coroners’ inquests have identified deficiencies in the skills of some truck drivers
Significant variation in the length of training and assessment programs, including some very short courses.
Additionally, not all states and territories require drivers to complete training.11
Licensing in all jurisdictions should require nationally based training that focuses on practical outcomes to obtain a license. This should also apply to overseas drivers, who need to undertake Australian training to ensure they understand our vehicles, road network, and related rules. Training is essential for a safer and efficient industry.
The delivery of nationally consistent reforms to licensing and training requires leadership from National Cabinet.
Deliver key actions in the ISA Workforce Plan
The Industry Skills Australia (ISA) 2024 Workforce Plan for Transport and Logistics represents one element of the overall action plan required. We need a National Cabinet Action Plan, which includes, but is not limited to, the ISA Workforce Plan.
There are several urgent priorities not addressed or delivered by the ISA 2024 Workforce Plan for Transport and Logistics because these priorities remain the responsibility of governments and other agencies. This has led to a disconnect between acknowledging the issues that industry is facing and the necessary commitment to delivery and resources from governments to address the immediate challenges.
As ISA moves towards their 2025 workforce plan, key actions and potential projects that directly address the urgent driver shortage should be prioritised and accelerated. Any additional resources that ISA recommends should be delivered. This includes: work to improve transport and logistics industry career information (which should in turn be incorporated into the proposed National Heavy Vehicle Skills Hub), scoping training to assist the integration of overseas drivers, support for improvements to licensing, identification of the core skills for “job-ready” drivers, and upskilling for high productivity vehicle drivers. Additionally, the shortage of trainers must also be addressed.
Recognise driver skill levels
The Australian Bureau of Statistics proposal to establish a new skill classification for articulated truck drivers at skill level 3 (as part of the ANZSCO skill levels) and redesignate tanker truck driver as a skill level 3 should both be adopted. This is critical to ensure recognition of professional drivers and ensure the right skill level classifications. ANZSCO classifications are important for integrating with other government policy decisions, including funding.
Address other road freight industry skills shortages
Skills shortages are also being experienced in non-driving roles in the road freight industry workforce, such as mechanics. Addressing these shortages should be included under the proposed National Cabinet Road Freight Workforce Action Plan and in the proposed National Heavy Vehicle Skills Hub.
1. ISA, 2025, https://isa-files.azureedge.net/2025-07/2025%20Transport%20and%20Logistics%20Workforce%20Plan.pdf
2. BITRE, 2022, https://www.bitre.gov.au/sites/default/files/documents/bitre_rr154_summary_report.pdf.
3. NatRoad, 2025, https://www.natroad.com.au/truck-driver-licensing-reform-needs-to-consider-all-options/
4. Department of Transport and Infrastructure, SA Multicombination Program
5. Department of Transport and Infrastructure, MC Companion
6. Australian Apprenticeships, New Energy Apprentice Scheme
7. DITRDCA, Regional Investment Framework
8. NatRoad, IRU Truck Driver Shortage Survey, Attachment A
9. BITRE, 2022, Australian aggregate freight forecasts – 2022 update.
11. Austroads, Fact sheet 1: Improving safety with expanded competencies and training minimums.