The Middle East conflict has sent diesel and petrol prices soaring, and the flow on effects are hitting transport, logistics, trades and every business that relies on a vehicle.
The good news?
The ATO and federal government have rolled out three immediate, cash flow positive measures specifically designed to keep SMEs afloat until 30 June 2026.
The bad news?
Most business owners don’t know they exist and the deadlines are tighter than you think.
Here’s exactly what’s available, who qualifies and how we can help you access it before it’s too late.
1. Interest free ATO payment plans (no upfront payment required)
What is it?
The ATO has launched a tailored Fuel Response Payment Plan for businesses unable to meet tax obligations due to high fuel costs. It’s available until 30 June 2026 and is being actively promoted by the Commissioner as a “no questions asked” relief measure.
Key benefits
- No initial payment required (normally the ATO demands 20-30% upfront to enter a plan).
- Extended terms up to 24 months depending on debt size.
- Remission of general interest charge (GIC) for the first three months if you stick to the plan.
Who qualifies?
- You must show increased operating costs directly from fuel prices or indirectly from increases in transport, logistics and supply chain costs.
- You have a new or existing tax debt (BAS, instalment activity statement, income tax) you can’t service because of fuel costs.
- You’d reasonably be able to pay if fuel prices were normal.
- Your lodgements are up to date within 3 months of the payment plan being set up.
Scenario
A local courier operator with a $45,000 BAS debt and fuel costs up 85% was approved for an 18 month plan with zero upfront payment and no interest for the first quarter. That freed up $2,500 per month in cash flow to keep
drivers on the road.
How we can help
We can lodge the application on your behalf and negotiate directly with the ATO’s Fuel Response team.
Reply to this email with ‘PAYMENT PLAN’ and our advisors will contact you to organise this.
2. Fuel excise halved + heavy vehicle charges scrapped (instant 32c/litre saving)
What is it?
In response to the conflict, the federal government has cut fuel excise by 26.3 cents per litre on petrol and diesel until 30 June 2026.
Simultaneously, the heavy vehicle road user charge has been reduced from 32.4 cents per litre to zero for the same period.
Cash flow impact
- A tradie ute doing 30,000 km/year saves ~$1,500 in excise alone.
- A logistics firm with 10 heavy vehicles saves ~$40,000 in road user charges over three months.
Critical update
The ATO has adjusted fuel tax credit (FTC) rates to reflect the excise cut. If you’re claiming FTCs, you must use the new rates (effective 1 April 2026) or risk overclaiming and penalties.
Many businesses may accidentally claim the old, higher rate and set themselves up for an audit.
How we can help
We’ll review your last three BAS lodgements to ensure you’re maximising your FTC claims using the correct FTC rates. If you run a fleet, this could uncover $5,000 to $20,000 in unclaimed credits.
3. $20,000 instant asset write off extended to 30 June 2026
What is it?
Small businesses (turnover < $10 million) can immediately deduct the full cost of eligible assets up to $20,000 per asset until 30 June 2026. This was confirmed in October 2025 and is now law.
Why it matters now
With supply chains disrupted by the conflict, lead times for vehicles, machinery and IT equipment are blowing out.
Buying before 30 June locks in
- an immediate tax deduction (improves 2026 cash flow by reducing taxable income),
- protection against future price hikes if the war escalates or the dollar weakens.
Eligible assets
- vehicles (under $20,000)
- tools
- computers
- packaging equipment
- energy efficient upgrades
If you’ve been postponing a $18,000 vehicle or $15,000 of tools, this is your green light.
Scenario
A local plumbing business bought two $19,500 utes in March. The $39,000 deduction reduced their 2026 tax bill by $11,700 (at 30% company tax rate) effectively subsidising 30% of the purchase price.
How we can help
Send us a quote for any asset you’re considering and we’ll model the tax savings within 48 hours.
If the numbers stack up, we can fast track the purchase and ensure it’s logged before 30 June.
Bonus: State based fuel rebates (QLD, NSW, VIC)
Several states are passing on GST windfalls from higher fuel prices as one off rebates:
- QLD: $250 registration rebate for light vehicles (announced March 2026, closes 31 May).
- NSW: $150 fuel voucher for small business fleets (application opens 15 April 2026).
- VIC: 50% off heavy vehicle registration for Q2 2026.
These are first come, first served and close quickly.
How we can help
We are monitoring all applicable state level relief measures we can apply for on your behalf.
YOUR NEXT STEP: A 15 minute cash flow triage
This isn’t just about compliance, it’s about survival.
If fuel costs have blown out your budget, we can:
- Negotiate an interest free ATO payment plan with no upfront cash.
- Review your fuel tax credit claims to ensure you’re using the correct rates.
- Model the tax savings from an asset purchase before 30 June.
- Apply for any state rebates you qualify for.
Reply with ‘FUEL RELIEF’ and we will contact you to ascertain your available relief measures.
The ATO’s payment plan window closes 30 June and the excise cut expires the same day.
Every week you delay is cash left on the table.