Rising fuel and transport costs continue to put pressure on Australian businesses, affecting cash flow well beyond the businesses that purchase fuel directly. Flow‑on costs through freight, logistics and supply chains are hitting margins across a wide range of industries.
In response, the ATO has introduced a temporary Fuel Response Payment Plan to support eligible businesses and sole traders who are experiencing difficulty meeting their tax obligations due to higher fuel‑related costs.
This measure is designed to provide breathing room for otherwise viable businesses while fuel prices remain elevated.
What is the ATO Fuel Response Payment Plan?
The Fuel Response Payment Plan allows eligible taxpayers to enter into a more flexible repayment arrangement with the ATO for existing or new tax debts.
Key features of the plan include:
- no upfront payment required
- up to three years (36 equal monthly instalments) to repay tax debts
- potential remission of General Interest Charge (GIC)
Where the conditions of the plan are met, the ATO may remit interest that accrues from the time of application through to the third monthly instalment, provided payments are made on time and outstanding lodgements are brought up to date.
Applications for this support are open until 30 June 2026.
Further details are available directly from the ATO: https://www.ato.gov.au/individuals-and-families/financial-difficulties-and-disasters/ato-fuel-response/ato-fuel-response-payment-plan
Who is eligible?
To apply for the Fuel Response Payment Plan, you must be an ABN holder and meet all of the following criteria:
- your business operating costs have increased:
- directly due to higher fuel costs, or
- indirectly due to increased transport, logistics or supply‑chain costs
- you have a new tax debt, or are unable to service an existing tax debt
- your reduced capacity to pay is specifically linked to high fuel prices (rather than a general business downturn or ordinary cash flow pressure)
- you can bring your outstanding tax lodgements up to date within three months of the payment plan being established
Importantly, this support is not limited to transport or logistics businesses. Many professional services, trade, retail and agricultural businesses may also be affected by increased freight and supplier costs and should consider whether they meet the eligibility criteria.
What businesses should consider before applying
The ATO requires businesses to retain evidence demonstrating how fuel‑related costs have affected their ability to meet tax obligations. This may include records comparing prior periods, supplier invoices, transport costs or changes in margins.
It is also important to note that this is a payment plan, not debt forgiveness. Ongoing compliance is essential, and the ATO may cancel the arrangement if agreed payments or lodgement requirements are not met.
How HFB can assist
Before applying, we recommend speaking with us to ensure this option is appropriate for your circumstances. At HFB we can:
- assess whether you are likely to meet the eligibility criteria
- review your current ATO position and outstanding lodgements
- assist with the application or liaise directly with the ATO on your behalf
- discuss alternative ATO support options if the Fuel Response Payment Plan is not suitable
If rising fuel or transport costs are impacting your business cash flow or ability to meet ATO obligations, please contact our team to discuss your situation.