Rising Fuel Prices Putting Pressure on Business Cash Flow

Fuel, freight and transport costs continue to rise, creating growing cash flow challenges for businesses across Australia. While transport and logistics operators are experiencing the most immediate impact, the flow‑on effects are being felt across many other sectors, including trades, service industries, agriculture, retail and professional firms.

Recognising the strain that higher operating costs are placing on businesses, the ATO has indicated increased flexibility and support options for businesses experiencing financial pressure.

If fuel‑related expenses are beginning to affect your ability to meet tax obligations, it is important to understand what assistance may be available and to act early.

ATO Fuel Response Payment Plan

In response to rising fuel costs, the ATO may allow eligible businesses impacted by fuel‑related cash flow pressure to enter into tailored payment arrangements.

Subject to eligibility and ATO assessment, this may include:

• Payment arrangements with no upfront payment required

• The ability to spread repayment of tax liabilities over up to 36 months

• Requests for reduction or remission of General Interest Charges (GIC), where appropriate

These arrangements are temporary and currently available until 30 June 2026, subject to ATO discretion.

Who May Be Eligible?

Businesses seeking assistance generally need to demonstrate that:

• They hold a valid Australian Business Number (ABN)

• They have experienced increased costs due to higher fuel prices, either directly or through freight, transport or supply chain costs

• They have incurred a new tax debt or are finding it difficult to manage an existing liability

• Fuel‑related cost increases are the primary cause of cash flow pressure, rather than broader trading or structural issues

Each request is assessed on its own merits, and the ATO may require supporting information.

PAYG Instalments May Also Be Varied

Businesses experiencing reduced profitability due to rising operating costs may also be able to vary their PAYG instalments.

Where expected income is lower than originally forecast, reducing instalments can provide short‑term cash flow relief. Care should be taken when varying instalments, as incorrect or unreasonable variations may result in penalties or interest.

How We Can Assist

If increasing fuel, freight or transport costs are impacting your business finances, early action is critical.

We can assist by:

• Reviewing your circumstances and assessing eligibility for available ATO support options

• Assisting with payment arrangement applications

• Reviewing and varying PAYG instalments where appropriate

• Developing a practical strategy to manage tax obligations and maintain cash flow

Please contact us to discuss your situation and ensure you are accessing all available support options.