High fuel prices have placed pressure on many Australian businesses and households. In response, the Australian Government and the Australian Taxation Office (ATO) have introduced a range of temporary measures to help ease cash‑flow stress and support taxpayers who are struggling to meet their tax obligations due to increased fuel costs.
The Government’s Fuel Security Measures
On 30 March 2026, the Australian Government announced a National Fuel Security Plan aimed at providing short‑term relief from rising fuel prices. From 1 April 2026, temporary legislative measures came into effect, including:
- A temporary reduction in fuel excise for three months;
- Changes to fuel tax credit rates, reflecting the reduction in the heavy vehicle road user charge; and
- A deferral of the next scheduled increase in the heavy vehicle road user charge by six months.
These measures are now law and apply automatically where relevant.
ATO Support
In addition to these economy‑wide measures, the ATO has expanded its administrative support options for taxpayers experiencing genuine financial difficulty caused by higher fuel prices.
For businesses, the centrepiece of the ATO’s response is a new, temporary ATO Fuel Response Payment Plan, designed to give eligible taxpayers greater flexibility in managing tax debts. The ATO is also continuing to make available its existing support mechanisms, which may include:
- Payment plans for new or existing tax debts;
- Remission of penalties and interest, where appropriate;
- The ability to vary PAYG instalments if income has reduced; or
- Priority processing of tax refunds to assist with cash flow.
Key features of the ATO Fuel Response Payment Plan
Eligible taxpayers can apply for a tailored payment plan with the following core conditions:
- No upfront payment;
- A 3‑year payment period (36 equal monthly instalments); and
- Potential remission of the general interest charge (GIC) accrued from the date of application to the third monthly instalment, provided payment and lodgement conditions are met.
The payment plan is available by application until 30 June 2026. The ATO has indicated it will continue to monitor fuel cost impacts and update its support options if circumstances change beyond 30 June 2026.
Eligibility Requirements
To be eligible, applicants must be ABN holders and satisfy all of the following:
- They have experienced increased operating costs directly or indirectly attributable to higher fuel prices;
- They have a new tax debt or are unable to service an existing tax debt;
- They can demonstrate a reduced capacity to pay due specifically to high fuel prices (not a general business downturn); and
- All outstanding tax lodgements will be brought up to date within three months of the payment plan being set up.
Need Help?
The ATO encourages taxpayers to check that they meet the eligibility criteria before they apply and have appropriate support to evidence how rising fuel costs have affected their business. If you need help with your application, please contact your local Moore Australia office today.
