News

As surging fuel prices continue to squeeze Australian businesses, the Australian Taxation Office has introduced a new temporary payment plan specifically designed to help businesses manage their tax obligations during this period of financial strain.

Source: SmartCompany / ATO

What is the ATO Fuel Response Payment Plan?

The Australian Taxation Office has announced a new fuel response payment plan — a streamlined, tailored option for eligible Australian businesses that are falling behind on their tax obligations as a direct or indirect result of rising fuel costs.

The plan is available to eligible ABN holders until 30 June 2026, and offers the following key terms:

•  No upfront payment required
• A 3-year payment period with 36 equal monthly instalments
• Potential remission of the General Interest Charge (GIC), provided monthly instalments are paid on time and outstanding lodgements are brought up to date within three months

Businesses and sole traders can apply directly via ATO Online Services for Business or through a registered tax agent. Full details of the payment plan are available on the ATO website.

Who is Eligible?

To be eligible for the ATO fuel response payment plan, businesses must meet all four of the following criteria:

1. Increased operating costs — either directly through higher fuel prices, or indirectly through increased transport, logistics or supply chain costs.
2. A tax debt you cannot service — a new or existing tax debt arising from your financial difficulties.
3. Reduced capacity to pay due to fuel prices — demonstrating that, without elevated fuel costs, you would have reasonably been able to meet your obligations. This is separate from a general business downturn.
4.  Lodgements up to date — all outstanding lodgements must be brought up to date within three months of the payment plan being established.

What This Means for APPA Members

The promotional products industry has not been immune to the pressures caused by surging fuel costs. Rising freight surcharges including recent changes from Australia Post and StarTrack are impacting the cost of product fulfilment and supplier deliveries across the board.

For members experiencing genuine cash flow pressure as a result of these costs, the ATO’s new payment plan represents meaningful short-term relief.

What to Do if You’re Not Eligible

If you do not meet the eligibility criteria for the fuel response payment plan, the ATO recommends:

• Prioritise paying employee wages and superannuation guarantee entitlements
• Keep lodgements up to date - if a refund is expected, lodge as soon as possible
• Pay what you can as early as possible and set up a standard payment plan via ATO Online Services
• Speak with your registered tax or BAS agent to explore all available options

Further Reading

•  ATO Fuel Response Payment Plan — Australian Taxation Office

•  ATO launches fuel crisis payment plans for businesses falling behind — SmartCompany