With higher fuel prices continuing to flow through freight, transport and supply chains, many businesses are facing added pressure on margins and cash flow. For some, that may also make it harder to stay on top of tax obligations.
The Australian Taxation Office (ATO) has introduced temporary support for eligible businesses whose ability to pay tax debts has been affected by fuel-related cost pressures.
The main support measure is the ATO Fuel Response Payment Plan, which is available by application until 30 June 2026.
For eligible applicants, this may include no upfront payment, up to 36 equal monthly instalments, and remission of general interest charges for a period, subject to the ATO’s conditions. The ATO has also pointed businesses to other support options, including the ability to vary PAYG instalments where income has fallen.
To be eligible for a payment plan, you must be an ABN holder and need to show that:
Businesses and sole traders can apply through ATO online services. Registered tax or BAS agents can also apply on behalf of clients if they have written authority. The ATO notes that an application is not automatically approved, and applicants may be asked to provide more information.
This is not a tax waiver, and it will not suit every business. For businesses dealing with short-term cash flow pressure linked to higher fuel costs, it may offer some practical breathing room while conditions remain uncertain. The key message is to act early, understand your options, and get advice before small problems become larger ones.
See the ATO website for details on how to apply for the Fuel Response Payment Plan.
Businesses should seek independent financial advice from their accountant or finance or tax adviser before making decisions about tax debts, payment plans or cash flow arrangements.
For further information on the federal government’s broader support for businesses, visit Middle East response: what Australian businesses need to know.
If you have feedback on the challenges your business is facing or suggestions for further support in response to the Middle East conflict, please contact the Chamber’s Policy Team at policy@sabusinesschamber.com.au.
