ATO Fuel Response Payment Plan

Posted 8 May

ATO Fuel Response Payment Plan

The ATO has shared details of its fuel response payment plan, put in place to assist taxpayers who are affected by high fuel prices. The plan is available by application until 30 June 2026.  

For eligible taxpayers, the fuel response payment plan involves no upfront payment and provides a three-year repayment period of 36 equal monthly instalments.

It is of course important to remember that ATO payment plans do not come interest-free and are subject to the ATO’s general interest charge (GIC). Where you are eligible, the ATO has advised it will make a decision to remit the GIC for a three-month period, provided that:

•        You pay all instalments under the payment plan for the first three months; and
•        Any outstanding lodgements are brought up to date.

Eligibility Criteria
To be eligible for the payment plan, businesses must meet the following criteria:

1. You have experienced an increase in business operating costs and these costs are either:

a) directly attributable to higher fuel costs; or
b) indirectly attributable to increased fuel costs through higher transport, logistics or other supply chain costs.

2. You have a new tax debt, or you are unable to service an existing tax debt.

3. You can demonstrate a reduced capacity to pay due to 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. Your lodgments are brought up to date within three months of the payment plan being established.

The ATO’s fuel response payment plan may assist businesses by providing an immediate cash flow benefit and reducing short-term financial pressure where rising fuel costs have impacted operations.

If you believe your business may be eligible or would like assistance applying, please contact your WDF team member.

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