The Australian Taxation Office (ATO) has announced it will provide targeted support to eligible businesses affected by high fuel costs. The move has been welcomed by the Australian Retail Council (ARC) and The Council of Small Business Organisations Australia (COSBOA).

Commissioner of Taxation Rob Heferen said the ATO recognises the current fuel situation may severely affect some businesses, disrupting business supplies and day-to-day operations and creating uncertainty and financial pressures.

“If high fuel costs are affecting your business’ 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,” he said.

The ATO will provide eligible businesses that are unable to meet their payment obligations for three months, until 30 June 2026:

• 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: 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.

Retailers welcome support

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,” Mr 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 Mr Rodwell.

Fuel pressures hit small business cashflow

COSBOA CEO Skye Cappuccio also welcomed ATO’s support, noting that small businesses across the supply chain are experiencing immediate pressure, with higher fuel costs flowing directly into cashflow.

“Small businesses are feeling this now – fuel is a core cost, and it is hitting cashflow right across the economy,” Ms Cappuccio said.

“These are sensible, practical measures that go directly to the issue of cashflow and recognise the conditions small businesses are operating in and the importance of keeping them moving.”

She encouraged small businesses experiencing pressure to seek advice and access available support.

“We would urge small businesses experiencing difficulty to reach out to their trusted advisors – whether that’s their bookkeeper, accountant or finance broker – to help navigate the support available.”