Tackling the driver shortage with new action plan

Australia’s transport and logistics sector is facing a critical challenge: a growing shortage of heavy vehicle (HV) drivers.

 

This issue, highlighted in the Transport and Logistics 2025 Workforce Plan developed by Industry Skills Australia (ISA), is one of the most pressing concerns for employers across the industry.

The ability to attract and retain skilled workers is not only vital for business operations, but it also has far-reaching consequences for supply chains, regional communities, and the national economy.

A shortage with serious consequences

The impact of the HV driver shortage is already being felt. Freight volumes are projected to rise by 23.4 per cent by 2034, yet many operators are struggling to meet current service demands. Some businesses report heavy vehicles sitting idle simply because there are no drivers available.

This bottleneck disrupts just-in-time inventory systems, increases costs due to rising wages, and threatens the profitability and viability of transport businesses.

Passenger transport is also under pressure.

As governments push for greater use of public transport to support decarbonisation goals, demand for services is increasing, at a time when operators are already stretched thin. Delays and cancellations caused by driver shortages are affecting communities across the country, particularly in regional areas that rely heavily on road transport.

Skills, safety and standards

Driving a heavy vehicle requires more than just a licence – it demands a high level of skill, especially for articulated and multi-combination vehicles. Industry stakeholders have raised concerns about inconsistent training and licensing standards, as well as limited financial support for mentoring and training new drivers.

In response, a new occupation classification, Articulated Truck Driver (Skill Level 337), has been introduced under the Occupation Standard Classification Australia (OSCA), recognising the expertise needed for operating larger vehicles. Industry roundtables have also called for improved training to enhance safety and performance, particularly for drivers of road trains and those transporting dangerous goods.

ISA’s strategic response

As part of a broader strategy to attract, retain, and upskill HV drivers, ISA is working on several recently launched key initiatives:

Addressing heavy vehicle driver shortages

This industry led project will develop a National Heavy Vehicle Driver Action Plan – a strategic roadmap to tackle the driver shortage.

The plan will outline the current state of the industry, impacts of the shortage, and existing initiatives to address this critical challenge. It will also identify future actions, including areas needing government or industry support, and provide links to further resources.

Skilling HV drivers and licensing update

ISA is reviewing and updating heavy vehicle licensing competency standards to align vocational training with reforms from the Austroads National Heavy Vehicle Driver Competency Framework.

People first, for a future-fit supply chain workforceThese reforms aim to address inconsistencies in training and licensing across states and improve job-readiness for new drivers.

This project will ensure vocational training reflects these standards, helping to close skills gaps, especially for new and multi-combination vehicle drivers, and build employer confidence in driver competency.

Livestock transport training

Transporting livestock requires specialised skills in both vehicle operation and animal welfare. To improve training access and consistency, the Australian Livestock and Rural Transporters Association (ALRTA) partnered with ISA to develop a nationally recognised skill set for livestock transport.

This responds to recommendations from Jobs and Skills Australia and addresses current challenges, including fragmented training units across multiple Training Packages and a shortage of qualified trainers. The new Skill Set will align with national animal welfare standards and NHVR regulatory advice. ISA will also consult with stakeholders to identify future training and assessment needs, informing the next phase of the project and supporting best practice across the industry.

Dangerous Goods driver training review

Transporting dangerous goods requires strict safety compliance, yet current training standards vary widely. In response to industry concerns, ISA is reviewing the key licensing unit, TLILIC0001 Licence to transport dangerous goods by road, to improve consistency and safety.

This work supports the National Transport Commission’s broader review of the Australian Dangerous Goods Code, which will introduce updated training requirements.

A dedicated working group is assessing current delivery and content to ensure future training meets regulatory standards and better prepares drivers.

Final updates will be shaped collaboratively by industry experts and regulators, aiming to raise safety standards and ensure nationally consistent training for dangerous goods transport.

According to ISA CEO Paul Walsh Australia’s transport and logistics sector is facing unprecedented workforce challenges, and the shortage of heavy vehicle drivers is one of the most critical.

“These new initiatives are not just strategic, they’re essential. By working collaboratively with industry, unions, governments, and training providers, we’re laying the groundwork for real, lasting solutions that will strengthen our supply chains, support urban and regional communities, and support the sector’s long-term viability,” Walsh said.

Looking Ahead

Truck driving is currently the ninth most common occupation in Australia, and with freight volumes expected to grow by 11.5 per cent over the next five years, the demand for skilled drivers will only intensify.

ISA’s initiatives mark a significant step in turning strategy into action, ensuring Australia’s transport and logistics sector is equipped to meet future challenges and seize new opportunities.