The Australian Taxation Office (ATO) recognises that high fuel costs are affecting some businesses and will provide targeted support to eligible businesses that are unable to meet their payment obligations for three months, until 30 June 2026:
- streamlined access to more flexible payment plan arrangements, including longer payment terms, no upfront payment, and access to general interest charge (GIC) remission where payment and lodgment conditions are met.
- remission of GIC and other penalties: high fuel costs will be a relevant factor in consideration of additional requests for remission.
- support to vary pay as you go (PAYG) instalments where there has been a reduction in taxable income.
During this period, the ATO’s compliance approach will be guided by careful consideration of taxpayers’ circumstances and the current environment.
Businesses and their tax professionals can now assess their eligibility and notify the ATO of their interest in accessing a tailored payment plan and intention to vary PAYG instalments through the ATO’s online services. The ATO will then contact these businesses or their representatives with more information and next steps.
The ATO will continue to monitor the situation and communicate whether it plans to continue or change its approach beyond 30 June 2026 as appropriate.
The ATO’s usual support options for businesses having difficulty meeting their obligations continue to be available.
Quotes attributable to Commissioner of Taxation, Rob Heferen
‘We recognise the fuel situation may severely affect some businesses, disrupting business supplies and day-to-day operations and creating uncertainty and financial pressures. This is why we’re supporting affected businesses in these challenging times.’
‘If high fuel costs are affecting your business’ ability to meet tax payment obligations, and you are having difficulty getting working capital financing from your bank or normal source of credit, please let us know, so we can support you through this period. As always, consider seeking advice from your registered tax professional on what options might be best for you.’
‘The ATO can’t waive tax debts, but if you can’t pay in full at this time due to high fuel costs, it’s important to pay what you can and arrange a payment plan with us as early as possible.’
‘It’s still important to lodge on time. Once you lodge and have up-to-date records, we can help you understand your tax position and find the best support for you.’
Notes to journalists
The latest information on the ATO’s fuel situation response, including eligibility is available at ato.gov.au/fuelresponse which will be updated regularly.
A headshot of Rob Heferen, Commissioner of Taxation and ATO stock footage and images are available for use in news bulletins from our media centre.
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