In response to current cost pressures and supply uncertainty resulting from international fuel disruptions, the Australian Government has announced a National Fuel Security Plan – in effect from 1st April – providing temporary relief to support individuals and businesses for three months.
Under the Plan, the Australian Tax Office will provide support to eligible businesses via a Fuel Response Payment Plan program, with measures focused on:
- Flexible ATO payment plan arrangements – included no upfront payment, longer payment conditions, and potential General Interest Charge (GIC) remission;
- Consideration to remit GIC and other penalties attached to late payments – where taxpayers meet certain conditions;
- Allowing PAYG instalments to be varied where there has been a reduction in Taxable Income;
- Halving the fuel excise for three months (26.3 cent per litre reduction);
- Changes to Fuel Tax Credit Rates – including the reduction in the Heavy Vehicle Road User Charge to nil for three months; and
- The deferral of the next scheduled increase in the Heavy Vehicle Road User Charge by six-months.
The Federal Government has also advised that the ATO will further support businesses in ‘particularly vulnerable industries’ – confirming “some (ATO) compliance actions will be limited across the worst affected industries and some debt collection actions may be paused where appropriate”.
Access to the ATO Fuel Response Payment Plan is available until 30 June 2026 (via application).
Additionally, any further action to be undertaken beyond 30 June 2026 will be communicated as appropriate.
Please note, whilst the above temporary support measures are a focussed priority of the Federal Government given the current disruption, these changes are subject to legislation and receiving Royal Assent.
Eligibility to apply for the ATO fuel response payment plan
Under the ATO Fuel Response Payment Plan, businesses are eligible to apply if you are an ABN holder, who meets the following four criteria:
| 1. |
You have experienced an increased in business operating costs and those costs are either:
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| 2. |
You have a new tax debt, or are unable to service an existing tax debt. |
| 3. |
You can demonstrate a reduced capacity to pay due to the high fuel prices. This is separate from a general downturn in business or ordinary cash flow issues. This means that if fuel prices had not been so high, you anticipate you would have been able to meet your payment obligations, including instalments under existing payment plans. |
| 4. |
Your lodgments are up-to-date within three months of the Payment Plan being set-up. The ATO may cancel your payment plan if lodgments are not up-to-date within this period. Up-to-date lodgments are also required for the ATO to make a decision to remit GIC under the Fuel Response Payment Plan. |
Where taxpayers are not eligible, the ATO has advised businesses should priortise the following actions:
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Pay employee wages and ensure you pay Super Guarantee entitlements as a priority.
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Continue to pay creditors.
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Keep up-to-date with lodgments and if you are expecting a refund, lodge as soon as possible.
- If money is owed, pay what you can as soon as possible. For the remaining debt, you can set up a normal payment plan through ATO Online services.
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Where AGR Can Support You
Our team remain on-hand to discuss potential options available for your business as appropriate. For assistance in determining eligibility to access the ATO Fuel Response Payment Plan, and collating all necessary documentation and evidence to support an application, please contact our office on (07) 3002 2699 | info@agredshaw.com.au.
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