Ongoing global fuel supply disruptions and elevated energy prices are continuing to place pressure on Australian businesses, particularly those with significant transport, logistics or supply chain exposure. In response, the Australian Government has unveiled the National Fuel Security Plan, alongside a suite of temporary administrative concessions administered by the Australian Taxation Office (ATO).
From 1 April 2026 through to 30 June 2026, the ATO is offering tailored support options to eligible businesses that are experiencing genuine financial hardship directly linked to increased fuel costs. Central to this response is a dedicated ATO Fuel Response Payment Plan, designed to provide short- to medium-term cash flow relief while businesses adjust to sustained cost pressures.
Key features of the Fuel Response Payment Plan
Eligible taxpayers may apply for a payment arrangement with the following concessions:
- No upfront lump‑sum payment
- A repayment period of up to 36 months, structured as equal monthly instalments
- Remission of General Interest Charge (GIC) accrued from the application date through to the third instalment, provided all agreed payments are met and outstanding lodgements are brought up to date within three months
Importantly, businesses do not need to submit a separate application for GIC remission during this period, provided they comply with the payment plan conditions.
Who can apply?
The fuel response payment plan is available to ABN holders who meet the following criteria:
- Their business operating costs have increased due to fuel prices, either directly (e.g. fuel consumption) or indirectly (e.g. freight, logistics or supplier price increases), and
- They have either incurred new tax debt or are no longer able to service an existing liability, and
- They can demonstrate that their reduced capacity to pay stems specifically from fuel price impacts, rather than a general business downturn or ordinary cash flow volatility, and
- All required tax lodgements are brought up to date within three months of the plan being established
Failure to meet ongoing lodgement obligations may result in cancellation of the payment arrangement and loss of interest concessions.
Additional ATO support during the concession period
Alongside flexible payment plans, the ATO has indicated it will:
- Consider fuel‑related cost pressures when assessing requests for penalty and interest remission
- Support variations to PAYG instalments where taxable income has declined
- Apply a more measured compliance approach that takes broader economic conditions into account
Businesses can register their interest or notify the ATO through online services or with the assistance of their tax representative. The ATO will then make contact to confirm eligibility and outline next steps.
While these measures are currently scheduled to remain in place until 30 June 2026, the ATO has stated it will continue to monitor conditions and may extend or adjust its approach if circumstances warrant. Standard ATO support options also remain available for businesses experiencing financial difficulty outside the fuel response framework.
If you have any questions regarding your eligibility to apply for the ATO fuel response payment plan, please reach out through the contact form, or by calling us at 02 8226 1655.
Important Information – General Advice Disclaimer:
The information provided in this communication is general in nature and does not take into account your personal objectives, financial situation, or needs. Before acting on any information, you should consider its appropriateness in relation to your own circumstances and seek independent financial advice where necessary. We recommend consulting a licensed financial adviser before making any investment or financial decisions. Past performance is not a reliable indicator of future performance.
