Practical Help for Businesses Impacted by Fuel Disruptions

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With global fuel supply chains still under strain from conflict in the Middle East, many Australian businesses are feeling the impact through higher operating costs, delayed deliveries and pressure on cash flow.

To help stabilise affected sectors, Treasurer Jim Chalmers and the ATO have announced a package designed to give businesses immediate breathing room and reduce administrative burden during a volatile period.

Importantly, this is not a broad stimulus program. The assistance is practical, temporary and delivered directly through the ATO. If your business has been affected by fuel supply issues—whether through higher input costs, transport delays or reduced margins—the ATO now has discretion to offer flexible, case-by-case support.

What relief is available?

1. More flexible payment plans

The ATO can help you spread existing tax debts over a manageable timeframe. This keeps cash in your business for wages, stock purchases, fleet costs and other essential operations.

2. Remission of interest and penalties

Where payment delays are linked to fuel disruptions, the ATO can cancel general interest charges (GIC) and late-payment penalties. This prevents a temporary cash-flow issue from escalating into a much larger debt.

3. Easier variation of PAYG instalments

If revenue has dropped due to increased fuel expenses or supply slowdowns, you can reduce your quarterly PAYG instalments so they reflect your current trading reality. This can create meaningful short-term cash savings.

4. Reduced compliance activity

For the most affected industries, the ATO is temporarily scaling back audits and review activity. This allows you to focus on operations, staffing and customer commitments rather than responding to information requests.

5. Temporary pause on debt recovery

Where appropriate, the ATO may pause recovery action while your business stabilises. This can be critical for businesses facing short-term pressures that are outside their control.

How to access the relief

You don’t have to deal with the ATO on your own. We can help with assessing your situation, determining which measures might apply and lodge the necessary submissions.

In many cases, a short explanation of how fuel disruptions have affected your business—supported by basic financial information—is enough to start the process.

At this stage the ATO fuel response payment plan is available by application until 30 June 2026.

Why this matters commercially

For businesses in transport, logistics, manufacturing, agriculture and retail, fuel volatility can quickly erode profitability. The Treasurer’s package is designed to improve short-term liquidity so you can:

  • maintain staffing and service levels
  • manage supplier payments
  • adjust pricing strategies
  • continue operating without the added stress of compounding tax liabilities.

Put simply, cash-flow relief now can help position your business to take advantage of improved conditions later.

Take action early

If your business has been feeling the strain of higher fuel costs or disrupted supply, reach out to our team as soon as possible. We can review your position, identify which forms of support apply and manage the ATO process from start to finish.

For official information, see the Treasurer’s announcement and ATO fuel response.

Note: The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

Liability limited by a scheme approved under Professional Standards Legislation.

Schedule a consultation with a business expert.

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At Latter Kennedy, we do more than just financial services and tax returns. Schedule an obligation-free consultation and let us help you to get back on track to achieving your accounting, business and taxation goals.

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