Care workers, tradespeople and transport drivers are being hit hard by ballooning fuel costs, with some industry groups urging the government to roll out assistance packages or even a jobkeeper-style wage assistance program to help businesses avoid laying off staff.
Reports of small mining businesses scaling back operations and some construction companies deciding against hiring more apprentices have prompted suggestions the government should step in to help, with the Master Builders Association already forecasting a downturn in the number of homes that will be built this year.
The United Workers Union called for government-funded fuel vouchers and said older people were in “immediate danger” because rising petrol prices meant home care workers may not be able to visit all their clients.
“Without urgent government intervention, in-home aged care services are at risk right now and older Australians are in danger of missing the care they rely on,” said the UWU aged care director, Catalina Gonzalez.
With the supply shock still in its early days, combined with the unpredictable nature of Donald Trump’s war on Iran, federal and state governments have so far resisted announcing wide-ranging reforms in response to the fuel crisis.
So far, many industry groups have not called for major changes, but some sectors facing more problems have begun sounding the alarm.
The UWU said home care workers who drive their own cars to clients’ homes – delivering services such as personal care, meals and social connection – were particularly worried.
The union said it conducted a poll of 540 home care workers, finding people travelled an average of 260km a week. The poll found they could be each left out of pocket $160 a week, with some workers saying they may have to limit their driving, provide fewer services or even leave the sector.
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The UWU’s call for government-funded fuel vouchers would help workers provide care and dignity to older people, the union said.
“If workers can’t afford the fuel to do their work, older Australians miss medications, go without meals, miss essential wound care, and are left without personal care or the daily check-ins that support their wellbeing,” Gonzalez said.
“Every missed visit increases the risk of falls, missed personal care, and dangerous isolation for older Australians relying on home care.”
Fears from farmers and builders
The National Farmers’ Federation said a lack of diesel and fertiliser was hurting producers. The NFF president, Hamish McIntyre, urged the government to help secure more fertiliser from North or South America.
“Most farmers will need to decide before Anzac Day whether they will plant a crop this year,” he said.
“We’re in a situation now where we need fertiliser – no matter how it gets here or where it’s from … We need the government to think laterally about all options available to Australian farmers.”
The rising cost of oil-derived products such as piping and plastics, as well as diesel-intensive processes such as making sand or concrete, has some in the housing industry especially concerned. Sources said the industry was discussing whether to seek government assistance, pointing to how fixed-price contracts had left little room for businesses to increase their prices.
One idea being floated is a payment like the Covid-era jobkeeper wage subsidy to ensure businesses do not have to retrench workers. Sources said there were reports of apprentices already being let go or not being hired as planned.
Master Builders Australia on Friday forecast that there would only be 995,894 new homes started over the five years of the National Housing Accord, down from their previous forecast of 1,019,818. The peak body predicted the Middle East conflict and rising interest rates would see that number drop even further, against the federal government’s goal of 1.2m homes.
Denita Wawn, the CEO of Master Builders, warned job losses would only get worse if costs continued increasing.
“The government must learn the lessons from Covid and monitor this closely, ensuring certainty is provided with respect to stand down provisions and consideration given to whether further supports are needed, especially to ensure apprentices are retained,” she said.
“What builders need is more flexibility from government and private sector clients around completion dates and, where possible, contracts need to facilitate the sharing of the impact caused by unexpected cost increases outside the builder’s control.”
Simon Croft, of the Housing Industry Association, urged the government to lock in the Key Apprenticeship Program, which allows businesses to claim up to $10,000 per trainee.
“We want to see that confirmed for the next three years in this budget. To have it locked in would be some certainty,” Croft said.
He said some construction businesses may need business support packages to absorb rising costs, and the ACCC should take a role in ensuring increased input costs were only temporary and justified.
The waste management sector has also raised concern about rising fuel costs, asking to be among those prioritised for petrol access. Gayle Sloan, the CEO of the Waste Management and Resource Recovery Association, said rubbish pick-ups would continue but governments should focus on ensuring they “keep companies whole” after the crisis ends.
“We need to recognise it’s having a very large cost impact across the whole supply chain … we need to keep an eye on that, if we need to prioritise or lay off staff, or if we need to go to a jobkeeper-style program. We need to keep workers financially stable and keep our companies stable,” she said.
