ATO Fuel Cost Support Package – What It Means For Businesses

The Fuel Response Payment Plan is a temporary support measure introduced by the Australian Taxation Office (ATO) in early April 2026. It helps businesses and sole traders struggling with tax debts due to rising fuel prices and related supply chain pressures.

As part of the Australian Government’s response to fuel cost challenges (including a temporary reduction in fuel excise), the plan provides more flexible repayment options than standard ATO arrangements. It aims to ease cash flow pressures without requiring an immediate lump-sum payment.

Key Features of the Plan

Eligible applicants can access a tailored payment arrangement with these benefits:

• No upfront payment required.
• 36 equal monthly instalments over a 3-year (36-month) period.
• Potential remission of General Interest Charge (GIC): The ATO will consider remitting GIC accrued from the time of your application until the date of your third monthly instalment. This is conditional on paying all agreed instalments for the first 3 months and bringing any outstanding lodgements up to date within that period. No separate application for GIC remission is needed during this support window.

The plan is available by application until 30 June 2026. After this date, the ATO will review ongoing support needs. Note that while the repayment term can extend up to 36 months, GIC remission is typically limited to the initial period based on compliance.

Additional related support includes the ability to vary Pay-As-You-Go (PAYG) instalments if your taxable income has been impacted by fuel costs.

Who Is Eligible?

To qualify, you must be an ABN holder and meet all four of the following criteria:

1. You have experienced an increase in business operating costs that are either directly attributable to higher fuel costs or indirectly attributable through increased transport, logistics, or other supply chain costs.
2. You have a new tax debt or are unable to service an existing tax debt.
3. You can demonstrate a reduced capacity to pay that is specifically due to the high fuel prices. This must be separate from a general business downturn or ordinary cash flow issues. In other words, if fuel prices had not risen so sharply, you anticipate you would have been able to meet your tax obligations (including any existing payment plans).
4. Your tax lodgements must be brought up to date within 3 months of the payment plan being established. Failure to do so may result in the plan being cancelled. Up-to-date lodgements are also required for GIC remission consideration.

You should gather supporting evidence (such as records showing fuel-related cost increases and their impact on your cash flow) in case the ATO requests it. The plan is not intended for businesses facing unrelated financial difficulties.

How to Apply

Businesses (including companies) can apply via the ATO website otherwise contact your Bentleys advisor who will be able to assist with your application.

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Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.