The Australian Government has announced proposed legislation as part of the National Fuel Security Plan, including halving of the fuel excise and changes to fuel tax credit rates.

Additionally, the ATO is offering streamlined access to a new temporary ATO fuel response payment plan to eligible taxpayers, in response to the impact of high fuel prices on businesses.

The fuel response payment plan offers arrangements on new and existing tax debts with the following conditions:

• no upfront payment
• a 3-year payment plan period of 36 equal monthly instalments via direct debit (you can choose to pay in full earlier to limit exposure to general interest charge)
• general interest charge remission (GIC).

The ATO will make a decision to remit any general interest charge that has accrued from the time of application to the date of the third monthly instalment provided:
– all instalments are paid as agreed under the payment plan for 3 months
– any outstanding lodgements are brought up to date in that period.

Who is eligible to apply for the payment plan?

Clients are eligible to apply for the ATO fuel response payment plan if they hold an ABN, meet the following four criteria, and can provide evidence of their eligibility if requested to do so:

1. Have experienced an increase in business operating costs and these costs are either:
   – directly attributable to higher fuel costs
   – indirectly attributable to high fuel costs because of increased transport, logistics or other supply chain costs.
2. Have a new tax debt, or are unable to service an existing tax debt.
3. 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. Lodgements are up to date within 3 months of the payment plan being set up. The ATO may cancel payment plans if lodgements are not up to date within this period. Up-to-date lodgements are also required for the ATO 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. Further applications for GIC remission will not be required for this period.

Need help?

If you would like to see if you are eligible for an ATO payment arrangement or require assistance with an application, please contact our office – we’re here to help.