Last updated: Wednesday, 24 June 2026
WALGA is holding weekly meetings with Fuel Security State Controller, Rob Cossart to provide insights from Local Governments that directly inform statewide fuel security and resilience planning.
WALGA will continue to stay central to ongoing conversations, providing timely updates to the sector as the situation progresses.
All states and territories, including WA, remain at Level 2 on the National Fuel Security Plan, which allows the WA Government to gather timely data and information from the industry.
To support the sector, WALGA has established a fortnightly CEO roundtable to discuss operational impacts and is collecting data on Local Government fuel usage to inform advocacy at State and national levels, including any future fuel prioritisation decisions.
WALGA is also attending national roundtable discussions hosted by the Australian Local Government Association (ALGA).
The State Government is issuing weekly fuel updates, and WALGA will continue to stay central to the conversations and provide timely updates to the sector as the situation progresses.
Read the WA Government Weekly Fuel Update
Local Government Support
In response to queries received by WALGA from our Members, please find below information relevant to Local Government operations.
Fair Work Commission Road Transport Contractual Chain Order
The Fair Work Commission (FWC) issued an emergency Road Transport Contractual Chain Order (Order) and Decision in response to escalating fuel price volatility arising from the conflict in the Middle East and disruption to shipping through the Strait of Hormuz.
The Order commenced on 21 April 2026 and has had implications for Local Governments as they participate in road transport contractual chains through service delivery arrangements (such as waste management, goods distribution, and passenger transport).
As the weekly national average diesel gate price fell below $2.00 per litre on 7 June 2026, the mandatory fuel cost recovery obligations under clause 4 of the Order are no longer active.
In their Statement of 7 July 2026, the Commission has extended their review of the Order to consider whether there are emergency circumstances remaining to vary the Order or whether it is appropriate to revoke the Order. The Commission has listed the matter for report back and case management at 10:00am (AEST) on 26 August 2026.
WALGA will provide updates to the sector as further information is available.
Webinar
In May 2026, WALGA hosted a webinar with a presentation from Kingston Reid explaining the Order, how it impacts the Local Government sector, what obligations apply, and how Local Governments can respond. Please see the webinar recording and slides below. Please note that some of this information may no longer be up to date given the Order's developments since May 2026.
While the Order remains in force, the obligations under clause 4 are currently suspended because the national average diesel gate price is below the activation threshold of $2.00 per litre. Practically, this means that Local Governments do not have current obligations under the Order, but that the Order may be varied or revoked in the future.
The Fair Work Commission is scheduled to reconsider the Order in August 2026.
Further information, including submissions, transcripts and Commission communications, is available on the Fair Work Commission website: TWU & ARTIO application for a road transport contractual chain order – fuel cost major case (MS2026/1) | Fair Work Commission. This material includes the joint submission made by WALGA and ALGA.
On 2 April 2026, the Transport Workers’ Union (TWU) and the Australian Road Transport Industrial Organization (ARTIO) applied for an emergency RTCCO, citing fuel price impacts caused by geopolitical disruption.
On 10 April 2026, the Minister for Employment and Workplace Relations determined the application met the emergency threshold, triggering the expedited process for the RTCCO.
On 20 April 2026, the Fair Work Commission made the emergency Order.
On 21 April 2026, the Order commenced.
On 29 May 2026, the Fair Work Commisson published a Statementand a Notice of Intent seeking consultation on proposed varations to the Order.
On 7 June 2026, the national average diesel gate price dropped below $2.00 per litre, meaning the fuel cost recovery obligations of Local Governments under clause 4 ceased to apply. The cessation of the obligations does not mean that the Order as a whole ceases. The FWC needs to revoke the Order for it to cease fully.
On 7 July 2026, the FWC released a Statement confirming that:
- The Commission was not implementing the proposed variations (as per their May 2026 correspondence).
- The Commission will review the Order in August 2026 and consider whether it should be varied or revoked.
No current actions are required for compliance with the Order. The Order's obligations are currently suspended, awaiting the FWC's review in August 2026.
Local Governments are recommended to continue to monitor the Fair Work Commission's website including for the Commission's review in August 2026, as the obligations under the Order may be varied or revoked following that review.
Waste
WALGA has continued to highlight to Government that if there is any restriction on fuel supply, waste collection, transport and disposal need to be a priority.
WALGA has contacted Preferred Suppliers to confirm their arrangements and contingency plans for fuel supply. Current information indicates supply is continuing. Both Waste Contractors, and Local Government’s delivering waste services, are currently reviewing their business continuity plans. These plans include consideration of which services would be prioritised or paused. If this becomes necessary, WALGA will work with Preferred Suppliers and Local Government to facilitate a consistent approach.
WALGA has flagged with the Department of Water and Environmental Regulation that some License amendments may be needed to facilitate improved waste collection/consolidation efficiency.
ER Guidance
This information is general in nature and intended to address common themes. It does not replace the need to obtain specific advice where particular issues arise. For specific workforce queries, contact WALGA Employee Relations on 1300 366 956 or [email protected].
For national system employers (for example, Shires of Cocos (Keeling) Islands and Christmas Island), the Fair Work Act 2009 (Cth) contains statutory stand down provisions.
For WA state system employers (including most WA Local Governments), there is no general statutory stand down provision. However, stand down rights may exist under an applicable industrial agreement or contract of employment, and those instruments should be reviewed carefully.
Before relying on any stand down provisions (whether statutory, contractual or under an industrial agreement), we recommend that specific advice be obtained.
Employees may request, and employers may wish to explore, alternative arrangements to manage fuel related disruption, including working from home.
There is generally no standalone entitlement to work from home under awards or industrial agreements. Working from home is typically a discretionary arrangement, subject to contractual terms and organisational policies.
Any arrangements adopted should be consistent with relevant policies, applied reasonably and consistently, and clearly communicated as temporary and subject to review.
Procurement - Managing Cost Increases and Contract Pressures
We understand that Local Governments are being contacted by suppliers seeking to pass on recent cost increases. Given current global and economic conditions, Local Governments may need to carefully manage requests to increase contract prices.
Possible approaches include:
- Enforcing existing contract terms, including any price review clauses.
- Engaging with suppliers to explore solutions that reflect current and anticipated market conditions.
- Considering a request to vary the price if it is reasonable, appropriate and complies with legislation.
The Fair Work Commission has issued an emergency Road Transport Contractual Chain Order (Order) which is likely to impact Local Governments with contracts in a road transport contractual chain. Further information about the Order and actions recommended for Local Governments can be accessed here.
The first step is to review the contract with the supplier:
- Check whether the contract allows prices or rates to change.
- If changes are allowed, consider whether the increase is reasonable and supported by evidence, or whether a lower increase can be negotiated.
If the contract does not allow price changes, Local Governments may still consider whether a contract variation is reasonable.
When responding to a request for higher prices, Local Governments may wish to consider:
- The risk of service disruption if agreement cannot be reached.
- Whether the contract allows for price changes and any required notice periods.
- Whether the supplier has clearly explained the increase and provided evidence.
- Whether there is enough budget to cover the increase.
- Whether other suppliers are likely to raise prices as well.
- How much time is left on the contract.
- The costs and effort involved in starting a new procurement process.
- How similar requests have been handled in the past.
- Whether services could be reduced, delayed, or managed differently to reduce costs.
- The legal and practical implications of seeking to enforce existing contract terms.
- There may be other factors that are relevant depending on the situation.
Given current economic conditions, requests for price or rate increases may be reasonable. However, Local Governments must consider the procedural and compliance requirements.
- If the contract allows for price changes, follow procedures set out in the contract terms.
- If the contract does not allow for price changes and was subject to a formal tender, any variation must comply with the Local Government (Functions and General Regulations) 1996. Regulation 21A(a) allows variations only where they are necessary for the supply of goods or services and do not change the scope of the contract.
- If the contract was not tendered, contract variations should follow the local government’s internal policies and procedures.
The decision to vary a tendered contract must be made by:
- Council, or
- The CEO, if the variation falls within the CEO’s delegated authority.
All decisions should be properly documented for recordkeeping and contract management purposes.
If a budget amendment is necessary, Council approval is required under s6.8 of the Local Government Act 1995.
If a Local Government considers a request is not reasonable and cannot reach agreement with a supplier, it will need to decide what to do next.
This may include checking whether the supplier is willing to continue discussions. The Local Government may also need to think about how it will manage its relationship with the supplier. For example, it may need to consider how it would respond if the supplier’s performance declines, or if the supplier wants to end the contract.
If the Local Government is considering termination, legal advice may be required. This can help inform next steps and ensure any process to resolve the contract arrangement is handled correctly, with all risks and responsibilities clearly understood.
