02 Apr Fuel costs are rising. Here’s how the ATO may be able to help your business

Posted at 03:59h in Uncategorized by

With fuel prices increasing across Australia, many small businesses are feeling the pressure, especially those that rely on transport, deliveries, or supply chains.

To help ease that pressure, the ATO has introduced a Fuel Response Payment Plan. It is designed to give businesses more breathing room when it comes to paying their tax, rather than having to pay everything upfront or risk falling behind.

What support is available?

If eligible, the ATO may offfer:

  • No upfront payment requirement

You don’t need to make an immediate lump sum payment when entering the plan. Instead, you can begin paying the debt off gradually through instalments.

  • More time to pay, with payment plans of up to 3 years (previously 2 years)

This spreads your tax debt over a longer period, reducing the size of each payment and making it more manageable for your cash flow.

  • Interest relief, with interest charges paused from the time you apply until your third payment, provided you stay up to date with lodgements and repayments

Normally, the ATO charges interest on unpaid tax. Under this plan, those charges are temporarily paused, giving you a window to get on top of your payments without the debt increasing.

Who is this for?

This support is aimed at businesses that are genuinely struggling due to rising fuel costs.

You may be eligible if your business:

  • Has an active ABN

Your business needs to be registered and currently operating.

  • Is dealing with higher costs linked to fuel (for example, transport, freight, or supplier price increases)

This could include higher delivery costs or suppliers passing on their own increased fuel expenses.

  • Has a tax debt that can’t currently be paid on time

For example, outstanding BAS, PAYG, or income tax liabilities that are putting pressure on cash flow.

  • Can show that the financial pressure is specifically related to fuel costs, not just a general slowdown

The ATO is looking for a clear link between rising fuel costs and your business’s financial position.

  • Can bring all outstanding lodgements up to date within 3 months of entering the plan

Even if you can’t pay right now, you still need to have all your forms, such as BAS and tax returns, lodged and kept current.

What this means for you

If rising fuel costs are affecting your cash flow, this may be a good time to review your position and consider your options.

Acting early usually gives you more flexibility and better options.

Need help?

We understand times are difficult for some businesses, if you are feeling the pressure please contact our office. Even if this plan is not the right fit, there may be alternative ways we can help ease the burden.