We want to make you aware of a recent support initiative introduced by the Australian Taxation Office (ATO) in response to rising fuel costs impacting Australian businesses.

The ATO’s “Fuel Response” initiative is a temporary cash flow support measure, designed to assist eligible businesses that are experiencing financial pressure due to increased fuel and transport costs.

What is being offered?

The key feature of this initiative is access to a Fuel Response Payment Plan, which may allow eligible businesses to:

• Enter into extended ATO payment plans (up to 36 months)
• Avoid upfront payments when setting up the arrangement
• Potentially receive remission of interest charges (GIC)
• Benefit from a more flexible ATO approach to managing tax debts

Who is eligible?

The support is targeted at businesses that:

• Have an active ABN
• Are directly or indirectly impacted by rising fuel costs (e.g. transport, logistics, or supply chain)
• Are experiencing difficulty paying ATO tax debts as a result of these increased costs
• Are up to date (or willing to become up to date) with their tax lodgements

Importantly, the ATO has indicated that this relief is intended for businesses where fuel costs are a genuine driver of cash flow pressure, not general business downturn.

What should you do?

If your business is experiencing pressure from increased fuel or transport costs, we recommend:

• Reviewing your current ATO debt position
• Considering whether a payment plan would assist with cash flow
• Engaging early with us so we can assess eligibility and liaise with the ATO on your behalf

In addition, given the current cost environment, this is also a good opportunity to review your broader business expenses and cost structures.

Many businesses are finding value in identifying areas where efficiencies can be achieved or costs can be reduced.

If you would like assistance with a general business review or cost analysis, please feel free to reach out to our team.

McAdam Siemon Business Advisors – Adding value, every step of the way.