ATO Fuel Cost Support Package

What It Means for Businesses

The ATO has released details of a Fuel Response Payment Plan available to businesses experiencing tax debt pressures linked to rising fuel costs.

The measure forms part of the Government’s response to fuel price impacts and is designed to provide short-term flexibility where obligations cannot be met in full.

Key features

Eligible taxpayers can access:

No upfront payment requirement
Repayment over up to 36 months (36 equal monthly instalments)
Consideration of remission of General Interest Charge (GIC) and penalties

GIC remission is considered for amounts accrued from the date of application to the third monthly instalment, provided:

All agreed instalments are paid for the first three months; and
Outstanding lodgements are brought up to date within that period

No separate application is required for GIC remission during this initial period.

Additional support

The ATO has confirmed that:

PAYG instalments may be varied where there has been a reduction in taxable income.

Eligibility criteria

To access the plan, taxpayers must:

Hold an ABN
Have experienced increased operating costs directly or indirectly attributable to higher fuel prices, including flow-on supply chain impacts
Have a new tax debt or be unable to service an existing tax debt
Demonstrate a reduced capacity to pay specifically due to high fuel prices, rather than general business conditions
Bring all tax lodgements up to date within three months of entering the arrangement

The ATO has indicated that failure to meet lodgement requirements may result in cancellation of the arrangement.

Application timeframe

Applications for the Fuel Response Payment Plan are available until 30 June 2026.

The ATO has indicated it will continue to assess conditions and may update support measures beyond this date.

Takeaways

Businesses should assess eligibility before applying and retain evidence supporting fuel-related cost impacts
Ongoing compliance with payment terms and lodgements is required
Where the criteria are not met, standard ATO payment arrangements remain available

This is a targeted, time-limited measure.

Businesses affected by fuel cost pressures should review their position early to determine whether the arrangement is appropriate.