The temporary fuel measures announced on 30 March 2026 as part of the National Fuel Security Plan have now ended. The ATO fuel response payment plan was open from 1 April to 30 June 2026, and the reduced fuel excise rates, extended at a revised rate for July, finished on 2 August 2026. Businesses still feeling the effect of fuel costs now work with the ATO's standard support options, which remain available and are set out below.
What the temporary measures were
From 1 April to 30 June 2026, fuel excise on petrol and diesel was cut from 52.6 cents to 20.6 cents per litre, and the heavy vehicle road user charge was set to zero. On 21 June 2026 the government extended excise relief at a revised reduced rate for 1 July to 2 August 2026, with the road user charge reset. From 3 August 2026 excise returned to its normal rates, adjusted for the August CPI indexation.
Alongside the excise cut, the ATO offered a fuel response payment plan to eligible businesses whose ability to pay their tax had been reduced by higher fuel costs. It allowed tax debts to be paid over 36 equal monthly instalments with no upfront payment, and the ATO would remit the general interest charge from the date of application to the third instalment for businesses that paid the first three instalments and brought their lodgments up to date.
If you have a fuel response payment plan
Businesses that set up a plan before 30 June 2026 should already have heard the outcome of their application, and the ATO is contacting plan holders after the first three months to confirm whether the plan continues. Interest accrues on the remaining balance after that initial period, so paying the debt off early, where cash flow allows, reduces the total cost. Keeping lodgments up to date is a condition of the arrangement, and a business that has not heard from the ATO about its application should contact it directly.
Support available now
The ATO has moved support for businesses affected by fuel prices to its standard options. An ABN holder whose costs have risen directly or indirectly because of fuel, who has a new tax debt or cannot meet an existing one, and who can show the reduced capacity to pay comes from fuel prices rather than a general downturn, may still be able to arrange a more flexible payment plan. The ATO also offers:
- priority processing of tax returns and activity statements where a refund is expected
- remission of penalties and interest, which has to be requested separately
- a variation of PAYG instalments where lower profits mean the current instalments are too high
- lodgment and payment deferrals in appropriate cases
The ATO's guidance is to engage before a payment is missed. Lodging on time, even when the full amount cannot be paid, avoids failure to lodge penalties and keeps every option open.
Fuel tax credits on your activity statements
Fuel tax credit rates followed the excise changes, so different rates apply to fuel acquired from 1 April to 30 June 2026, from 1 July to 2 August 2026 and from 3 August 2026. The rate that applies is the one in force on the date the fuel was acquired, which means the July to September 2026 activity statement may need two sets of rates. The ATO's fuel tax credit rates page lists each period, and the ATO's fuel tax credit calculator applies the right rate to each purchase date.
Directors and unpaid PAYG or super
Where a company does not pay PAYG withholding or superannuation guarantee on time, the ATO can issue a director penalty notice making the directors personally liable for the unpaid amounts. A director penalty can generally be remitted where the company pays the debt, appoints an administrator or a small business restructuring practitioner, or begins winding up within 21 days of the notice, but that option is lost for amounts that remain unreported three months after their due date. Reporting PAYG and super on time and arranging a payment plan before the due date is the most effective protection a director has.
How we can help
We work with businesses to set up and manage ATO payment arrangements, request penalty and interest remission, vary PAYG instalments and prepare activity statements with the correct fuel tax credit rates for each period. If fuel costs are still affecting your ability to meet your tax obligations, speak with a Prime Partners adviser.
Frequently Asked Questions
Can I still apply for the ATO fuel response payment plan?
No. The plan was available from 1 April to 30 June 2026 and has closed. Businesses affected by fuel costs may still be able to arrange a flexible payment plan through the ATO's standard support options.
Has the fuel excise reduction ended?
Yes. The reduced rates applied from 1 April to 30 June 2026 and, at a revised reduced rate, from 1 July to 2 August 2026. Normal excise rates, indexed for the August 2026 CPI adjustment, applied from 3 August 2026.
Which fuel tax credit rate do I use on my BAS?
The rate in force on the date the fuel was acquired. Fuel bought in July 2026 and fuel bought after 3 August 2026 have different rates, so the July to September 2026 activity statement may need both.
What happens to my fuel response payment plan after the first three months?
The ATO contacts plan holders after the initial three-month period to confirm whether the plan continues. Interest accrues on the remaining balance after that period, so paying early reduces the cost.
What support does the ATO offer businesses affected by fuel costs now?
Flexible payment plans for eligible businesses, priority processing of returns where a refund is expected, remission of penalties and interest on request and variations to PAYG instalments.
