⚠️ ATO ALERT FOR BUSINESSES:
The Australian Taxation Office (ATO) has introduced a Fuel Response Payment Plan for eligible ABN holders affected by rising fuel costs, offering up to 36 months to pay and GIC relief.
This ATO fuel response payment plan is a tailored payment plan which the ATO is offering to eligible taxpayers affected by the increased cost of fuel in Australia.
Eligible taxpayers who are experiencing difficulties in paying tax debts owed to the ATO due to recent high fuel prices can apply to the ATO for a temporary fuel response payment plan.
Accessing the ATO Fuel Response Payment Plan?
If eligible, taxpayers can access the ATO fuel response payment plan with the following conditions:
- No upfront payment required.
- A 3-year payment plan period of 36 equal monthly instalments.
- General interest charge (GIC) remission. The ATO will remit any GIC that has accrued from the time of the application to the date of the third monthly instalment, provided the taxpayer:
> Pays all instalments agreed under the payment plan for the 3 months; and
> Brings any outstanding lodgements up to date in that period.
Who is Eligible?
A taxpayer is eligible to apply to the ATO for the fuel response payment plan if they are an ABN holder who meets the following 4 criteria:
Criteria One:
The taxpayer has experienced an increase in business operating costs and these costs can be shown to be either:
- Directly attributable to the increase in fuel costs; or
- Indirectly attributable to higher fuel costs due to price increases or levies in transport, logistics or other relevant supply chain costs.
Criteria Two:
The taxpayer has a new ATO tax debt or is unable to service an existing ATO tax debt.
Criteria Three:
The taxpayer can demonstrate a reduced capacity to pay their ATO debts due to the high fuel prices.
⚠️ Note: This does not include a general downturn in business or ordinary cashflow issues. This is to be interpreted as being a question that if fuel prices had not become so high, the taxpayer anticipates they would have been able to meet their payment obligations with the ATO.
Criteria Four:
The taxpayer’s lodgments are up to date within 3 months of the payment plan being set up.
⚠️ Note: The ATO can cancel the payment plan if the Taxpayers lodgements are not all up to date within this period. Up-to-date lodgements are also required for the ATO to make the decision to remit GIC under the fuel response payment plans.
How Do I Apply?
The fuel response payment plan is available by online application until 30 June 2026.
⚠️ Note: Importantly, taxpayers will not have to also make a further application for GIC remission for this period.
Andersen View
This fuel response payment plan is a welcome acknowledgement of the current hardships facing businesses in Australia in the current environment.
Should you believe this may be relevant to you, please contact your Andersen tax team to discuss your eligibility and how we can assist you with your application.
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