Understanding the Commonwealth’s Oil Crisis Support Packages

Other than temporary fuel tax relief, the Commonwealth Government has announced two relief packages for Australian businesses grappling with the impacts of the Persian Gulf Oil Crisis:

• ATO Fuel Response Payment Plan; and
• 2 Year Interest Loans under the Economic Resilience Program.

ATO Fuel Response Payment Plan

The Australian Taxation Office (ATO) Fuel Response Payment Plan (FRPP) is currently only available for applications made before 30 June 2026 and is designed to support eligible ABN holders who are struggling to meet their tax obligations as a direct result of fuel‑related cost pressures.

With fuel prices continuing to place strain on transport‑dependent industries and broader supply chains, the three-year payment plan offers a structured pathway for businesses to regain financial stability while keeping their tax affairs on track.

What the Program Offers

Eligible businesses can access a tailored payment plan with several key benefits:

• No upfront payment required
• 36‑month payment plan with equal monthly instalments
• General interest charge remission, provided instalments are paid on time for the first three months and lodgements are brought up to date
• Support for both new tax debts and situations where a business can no longer service an existing debt

This relief is temporary and specifically targeted at businesses affected by fuel‑driven cost increases.

Eligibility Requirements

To qualify, applicants must hold an ABN and meet all four of the ATO’s eligibility criteria. The most critical and the most scrutinised requirement is demonstrating that increased operating costs are caused by higher fuel prices.

1. Demonstrating a Direct Causal Link to Increased Fuel Costs

Applicants must show that they have experienced an increase in business operating costs that is either:

• Directly attributable to higher fuel costs, or
• Indirectly attributable to high fuel costs, due to increased transport, logistics, or other supply chain costs.
• This means businesses must be able to clearly explain and evidence how fuel price increases have impacted their cost structure.

Examples may include:

• Higher fuel bills for company vehicles
• Increased freight or delivery charges from suppliers
• Rising logistics costs passed through the supply chain
• Elevated costs for goods due to fuel‑driven price adjustments

The ATO emphasises this must be a specific, fuel‑related impact, not a general increase in expenses or a typical cashflow challenge.

2. A New or Unserviceable Tax Debt

Businesses must have either:

• A new tax debt, or
• An existing tax debt they can no longer service due to fuel‑related financial pressure

3. Reduced Capacity to Pay Because of Fuel Prices

Applicants must demonstrate that high fuel prices have directly reduced their ability to meet tax obligations. Importantly, this must be separate from general business downturns. The ATO expects businesses to show that, if fuel prices had not risen, they would have been able to meet their payment commitments.

4. Up‑to‑Date Lodgements

Tax lodgements must be brought up to date within three months of the payment plan being established. This is different to most repayment arrangements whereby the ATO requires all lodgements to be up to date beforehand.

Where ATO has already commenced legal action in relation to an outstanding tax debt, eligibility for the Fuel Response Payment Plan may not be available.

Causal Link Matters

The ATO’s focus on a direct causal link ensures that the payment plan is targeted at businesses genuinely affected by fuel price volatility. This requirement helps distinguish between:

• Businesses facing fuel‑specific financial strain, and
• Businesses experiencing general cashflow issues unrelated to fuel costs

For applicants, this means preparing clear documentation—such as invoices, supplier notices, fuel receipts, or cost comparisons—to demonstrate how fuel price increases have impacted operations.

2 Year Interest Free Loans

The Economic Resilience Program (ERP) loan program is much broader in application, intended to assist logistics and manufacturing businesses directly impacted by “market disruptions”.

Unlike the ATO FRPP relief (where businesses are required to demonstrate increased key input costs such as fuel, transport or supplies), the ERP program may consider as part of its assessment, the broader range of business symptoms including ‘revenue’, ‘capex’ and ‘financing’ considerations. Specific examples in the guidance note include:

• Changes in trade terms with suppliers or customers
• Supply delays or shortages
• Cancellation, deferral or reduction of customer orders or contracts
• Reduced demand from key end-markets affected by geopolitical or trade events
• Increased reliance on short-term financing to manage cashflow volatility
• Accelerated capex or retooling to adapt to disrupted markets

The ERP program is restricted to an exhaustive list of ANZIC business codes (ERP ANZSIC codes_May 2026.pdf) which can be generalised as Fuel, Food, Fertilizer, Plastic and other energy intensive manufacturing businesses.

Loans originated after 20 April 2026 may be capable of qualifying and the program runs until 20 October 2026. The principal amount of the interest free loan must be repaid within two years of the first drawdown. If the loan is extended beyond this point, commercial interest rates apply.

All major banks are currently participating in the program to administer loans up to $5m.

The National Reconstruction Fund Corporation will directly process applications in excess of $5m. There is no scheduled maximum sum and can be tailored to suit the needs of the business.

How We Can Assist

The WCT Advisory team has a deep understanding of how lenders and/or the ATO are likely to view your situation and how to best present an application, whether you are considering applying, unsure if you qualify, or have already been declined. If you’re dealing with a tax debt or uncertain about your eligibility for support, we can help you get a clear picture of your position and the practical options available to you.