In light of the current international situation and ongoing fuel supply disruptions, on 30 March 2026, the Australian Government announced the National Fuel Security Plan. To support the plan the Australian Taxation Office (ATO) has announced a series of temporary measures from 1st April to support individuals and businesses. 

The 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. This includes:

  • 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 lodgement 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.

Eligibility to apply for the ATO fuel response payment plan

You are eligible to apply for the ATO fuel response payment plan if you are an ABN holder who meets the following 4 criteria:

  1. You have experienced an increase in business operating costs and these costs are either
    1. directly attributable to higher fuel costs
    2. indirectly attributable to high fuel costs because of increased transport, logistics or other supply chain costs.
  2. You have a new tax debt, or you are unable to service an existing tax debt.
  3. You can demonstrate a reduced capacity to pay due to the high fuel prices. This is separate from a general downturn in business or ordinary cashflow issues. This means that if fuel prices hadn’t been so high, you anticipate you would have been able to meet your payment obligations, including your instalments under existing payment plans.
  4. Your lodgments are up to date within 3 months of the payment plan being set up. We may cancel your payment plan if lodgments are not up to date within this period. Up-to-date lodgments are also required for us to make a decision to remit GIC under the fuel response payment plans.

The ATO fuel response payment plan is available by application until 30 June 2026.

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.

If you are an MGI client and have any questions regarding your eligibility to apply for the ATO fuel response payment plan, don’t hesitate to contact a member of our team.