ATO role in the National Fuel Security Plan
On 30 March 2026, the Australian Government announced the National Fuel Security Plan. On 21 June 2026, the Australian Government announced that it would extend fuel excise relief at a revised reduced rate for another month. These changes are now law.
From 1 July to 2 August 2026, temporary measures will apply, including:
- a 30.4% reduction of full excise rates for one month (for petrol and diesel, this is a 16 cent per litre reduction) – see Excise duty rates for fuel and petroleum products
- setting the heavy vehicle road user charge to 16.4 cents per litre – see Rates – business.
As a result of these changes, the fuel tax credit rates will change – see Rates – business.
We also administered temporary measures from 1 April 2026 to 30 June 2026, which included:
- reducing the fuel excise for 3 months (32 cent per litre reduction) – see Excise duty rates for fuel and petroleum products
- reducing the heavy vehicle road user charge to zero for 3 months – see Rates – business
- deferring of the next scheduled increase in the heavy vehicle road user charge by 6 months.
As a result of these changes, the fuel tax credit rates changed too – see Rates – business.
ATO options for impacted taxpayers
If you are impacted by increasing fuel prices, the ATO has a range of options to help manage your tax obligations.
Options for businesses
Between 1 April and 30 June 2026, the ATO offered access to a temporary ATO fuel response payment plan in response to the impact of high fuel prices on businesses. Support for businesses impacted by high fuel prices has now transitioned to our standard support options.
If your business is impacted by high fuel prices, the following options are available to help you manage your tax obligations:
- priority processing of tax returns
- remitting penalties and interest
- varying your pay as you go (PAYG) instalment
- payment plans
- discretion not to offset.
To find out more, visit Tax support for individuals, businesses, not-for-profits and tax professionals.
Options for individuals
For individuals experiencing hardship due to fuel prices, we have pre-existing support services. To find out more, visit Tax support for individuals, businesses, not-for-profits and tax professionals.
How registered tax and BAS agents can help
As a registered tax or BAS agent you play a vital role in supporting your clients who are impacted by high fuel prices. You can support your clients who are most impacted as follows:
- Where your clients are likely to receive an activity statement refund, manage your workflows to prioritise their lodgments to help them manage cashflow.
- Consider the ATO’s existing support mechanisms such as payment plans, lodgment and payment deferrals and penalty and interest remission and guide your clients as appropriate.