ATO offering relief for businesses impacted by the fuel crisis

By Cec Busby April 2, 2026 4:25 pm

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Small businesses may be able to seek relief from tax debt, with the Australian Tax Office (ATO) offering support to eligible businesses impacted by the fuel crisis.

While the ATO can’t waive tax debts, affected businesses can enter into an arrangement to pay them off.

Commissioner of Taxation, Rob Heferen, said the ATO understands the fuel crisis may be affecting businesses.

‘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’s 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,” Heferen said.

Payment plans to ease pressure

Over the next three months, the ATO has committed to 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 will be taken on a case-by-case basis. Additionally, the ATO may accept variations to pay as you go (PAYG) tax instalments if expected income has been affected by the fuel crisis.

‘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.’

Heferen stressed it’s still important to lodge your tax 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,” Heferen said.

Small business advocates have welcomed the relief measures

Australian Retail Council (ARC) CEO Chris Rodwell said the measures will support small businesses navigating an increasingly volatile trading environment.

“The ATO’s approach recognises the cash flow pressures many small retailers are facing right now,” Rodwell said. “More flexible payment arrangements and a pause on compliance activity will provide immediate breathing room for businesses under significant strain.”

ARC’s latest industry data highlights the growing impact of fuel and supply chain pressures on small retailers.

“More than three in five retailers (61%) have been seeking tax relief because of the impacts of the conflict in the Middle East. This announcement, alongside the recent decisions on fuel security and the temporary reduction in fuel excise, will give some relief,” said Rodwell.

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