We are currently seeing a shift in how the ATO is processing certain tax debt payment plans under its Fuel Response Payment Plan.
In some recent cases, three-year payment plans have been approved without any back-and-forth with the ATO. Once the application is lodged, the arrangement has been approved and the taxpayer simply notified.
While this is not occurring in every case, it does suggest a more streamlined, system-driven process in some situations.
What is the Fuel Response Payment Plan
The ATO Fuel Response Payment Plan is a temporary measure designed to support eligible taxpayers impacted by increased cost of fuel and supply chain costs.
It allows eligible ABN holders to apply for:
- no upfront payment
- a 3-year payment plan (36 monthly instalments)
- potential general interest charge (GIC) remission, subject to conditions
GIC remission may apply to interest accrued from the time of application to the third monthly instalment, provided lodgements are brought up to date and all instalments are paid for the first 3 months.
This support is available by application until 30 June 2026.
Who is eligible
To apply, ABN holders must generally:
- have increased costs due to fuel or related supply chain impacts
- have a tax debt they cannot currently service
- demonstrate reduced capacity to pay specifically due to fuel costs (not general business downturn or cash flow pressure)
- have lodgements up to date within 3 months of setting up the plan
What we are seeing in practice
In some recent cases, we are seeing:
- approvals without additional ATO contact
- three-year repayment terms set at approval
- minimal or no follow-up once lodged
- taxpayers simply notified once the arrangement is in place
This is not universal, but it is becoming more common in straightforward applications.
How to apply for the plan
The ATO Fuel Response Payment Plan is available by application until 30 June 2026.
If you are a business owner, including being a sole trader, you can log in to Online services for business (or Online services for individuals if you are a sole trader) and follow the prompts to the application form.
To complete the application, you will need to:
- be eligible and able to declare that you can provide evidence if requested to do so
- be able to repay your debt in a maximum of 36 equal monthly repayments (you can choose to pay in full earlier to limit exposure to general interest charge (GIC))
- be able to
- comply with your payment plan
- bring any outstanding lodgements up to date within 3 months from the start of your payment plan (in order to continue the payment plan and have interest remitted)
- indicate whether you intend to vary your pay as you go (PAYG) instalments.
Businesses should ensure any information provided in support of an application is accurate and complete, as eligibility is assessed based on the information supplied to the ATO.
If you would like assistance in applying, you can contact your Highview Accountant who can apply on your behalf for a fee.
You can also find more information on the ATO website here.
