ATO Support for Businesses Impacted by High Fuel Costs
Posted on April 7th, 2026 by Paul Lyons
ATO Support for Businesses Impacted by High Fuel Costs
With fuel prices continuing to put pressure on businesses, the Federal Government has announced extra support through the Australian Taxation Office (ATO). If higher fuel costs have affected your cash flow, you may be eligible for a more flexible ATO payment plan.
What Support Is Available?
The ATO’s Fuel Response Payment Plan offers eligible businesses:
- No upfront payment
- Up to 3 years (36 monthly instalments)to pay tax debts
- Remission of interest (GIC) provided conditions are met
- The ability to vary PAYG instalments if your taxable income has reduced
If approved, the ATO will consider remitting general interest charge (GIC) that accrues from the time you apply up until your third monthly instalment, provided you:
- Pay all agreed instalments for the first three months, and
- Bring all outstanding lodgements up to date within that time.
Applications are open until 30 June 2026.
Who Can Apply?
You may be eligible if you are an ABN holder and meet all of the following criteria:
- Your business costs have increased due to fuel prices, either:
- Directly (e.g. fuel usage), or
- Indirectly (e.g. higher transport, logistics, or supply chain costs).
- You have a new tax debt, or are struggling to meet an existing one.
- Your ability to pay has been reduced specifically because of fuel costs.
This must be more than normal cash flow pressure or a general downturn. In other words, if fuel prices hadn’t risen so sharply, you expect you would have been able to meet your tax obligations. - Your lodgements are brought up to date within three months of the payment plan being set up.
The ATO may cancel the plan if lodgements are not completed within this timeframe. Lodgements must also be up to date for GIC remission to be considered.
How to Apply
Before applying, you should:
- Check that you meet the eligibility criteria, and
- Gather information to show how fuel costs have impacted your business.
You can apply:
- Directly through ATO Online Services, or
- Through us, as your tax agent.
More information and application details are available here:
How to apply for the ATO fuel response payment plan | Australian Taxation Office
What If You Don’t Qualify?
If you’re not eligible for this specific payment plan, the ATO still expects you to take reasonable steps. We recommend you prioritise:
- Paying employee wages and super guarantee obligations
- Paying key creditors so they can meet their own employee obligations
- Keeping all tax lodgements up to date, especially if a refund may be due
- Paying what you can, as soon as you can
- Setting up a standard ATO payment plan for any remaining debt
We’re also very happy to talk through your situation and help you choose the best option.
Further details are outlined on the ATO website here: Further details here: ATO fuel response payment plan | Australian Taxation Office
Need Help?
If rising fuel costs are affecting your business and you’re unsure whether this applies to you, please get in touch. We can review your position, assist with the application, or explore alternative arrangements with the ATO.
As always, we’re here to help.
