ATO Fuel Relief for Businesses

BySLS Advisory

The Australian Taxation Office (ATO) has announced targeted relief measures to assist businesses experiencing cashflow pressure as a result of the current fuel crisis. These measures apply from 1 April 2026 and are currently available until 30 June 2026.

What support is available?

The ATO has introduced a Fuel Response Payment Plan and confirmed a more flexible compliance approach for affected businesses. Key assistance includes:

1. Tailored ATO payment plans

Eligible businesses may access a temporary payment plan with:

  • No upfront payment
  • Up to 3 years (36 monthly instalments) to repay tax debts
  • Potential remission of the General Interest Charge (GIC) provided conditions are met

2. Remission of interest and penalties

The ATO has confirmed that high fuel costs will be taken into account when considering:

  • Remission of GIC
  • Remission of failure-to-pay penalties

3. PAYG instalment variations

Businesses experiencing difficulty due to increased fuel or transport costs may apply to:

  • Reduce or vary their PAYG instalments

4. Pragmatic compliance approach

During this period, the ATO has stated it will take a practical and proportionate approach to compliance and debt collection action, particularly for businesses in hard-hit industries.

Who may be eligible?

You may qualify for the Fuel Response Payment Plan if all of the following apply:

  • You hold an ABN
  • Your business operating costs have increased directly or indirectly due to higher fuel prices (including transport, freight or supply chain costs)
  • You have a new or existing tax debt that you are currently unable to service
  • Your reduced ability to pay is linked specifically to fuel costs (not general cashflow pressure)
  • You are willing to bring all outstanding tax lodgements up to date within three months

How to apply

Eligible businesses can:

  • Apply directly via ATO Online Services for Business, or
  • Apply through SLS Advisory, who can assist with eligibility, documentation and negotiations with the ATO

The ATO has confirmed it will continue to monitor conditions and will advise if these measures are extended beyond 30 June 2026.

Our recommendation

If fuel or transport costs are affecting your ability to meet tax obligations:

  • Lodge outstanding returns as soon as possible
  • Seek advice early to determine whether the Fuel Response Payment Plan or other ATO support options are appropriate for your situation

If you would like assistance assessing your eligibility or engaging with the ATO, please do not hesitate to contact us.