Australian Taxation Office Announces Relief and Payment Support Amid Rising Fuel Costs

The Australian Taxation Office (ATO) has launched a targeted support package for businesses struggling with high fuel prices. Measures include flexible payment plans, GIC remissions and PAYG instalment variations available until June 30, 2026.

Australian Taxation Office Announces Relief and Payment Support Amid Rising Fuel Costs
Rob Heferen, Commissioner of Taxation

Canberra - The Australian Taxation Office (ATO) has announced an emergency support package for domestic businesses currently paralysed by record-high fuel costs and supply chain volatility.

Tax Commissioner, Rob Heferen, confirmed on Wednesday, April 1, that the agency will provide targeted administrative relief until at least June 30, 2026.

The measures are designed to assist companies whose working capital has been depleted by the soaring cost of petrol and diesel.

The intervention, originally detailed in an official ATO release, comes as the government moves to stabilise an economy reeling from Middle Eastern energy disruptions.

Under the new guidelines, eligible businesses can access streamlined payment arrangements featuring extended terms and the removal of upfront payment requirements.

The ATO has further pledged to consider high fuel overheads as a primary factor when evaluating requests for the remission of General Interest Charges (GIC) and other late-payment penalties.

"We recognise the fuel situation may severely affect some businesses, disrupting supplies and day-to-day operations," Commissioner Heferen stated.

"If high fuel costs are affecting your ability to meet tax obligations... please let us know so we can support you," he said.

The agency has also introduced provisions allowing businesses to vary their Pay As You Go (PAYG) instalments in cases where taxable income has significantly dropped due to energy-related expenses.

While the Commissioner stressed that the ATO cannot legally waive tax debts, he urged business owners to maintain their lodgment schedules.

"It’s still important to lodge on time," Heferen noted,."Once you lodge and have up-to-date records, we can help you understand your tax position and find the best support," he said.

The ATO indicated it will monitor the energy crisis throughout the quarter to determine if the support period needs to be extended beyond the current June deadline.

Affected enterprises and tax professionals have been instructed to register their interest through the ATO’s digital portals to begin the tailoring of their respective payment plans.

ATO file footage / stock vision