Fuel Prices, Tax Relief and What Melbourne Businesses Need to Know Right Now
If your business is feeling the pressure of elevated fuel costs, you are not alone. The Australian Government has just activated a National Fuel Security Plan — and there are immediate tax measures in place that Melbourne business owners should be aware of and acting on right now.
What the Government Announced
On 30 March 2026, the federal government announced the National Fuel Security Plan. From 1 April 2026, the ATO is administering the following temporary measures (see the ATO Fuel Response page for full details):
- A 32 cent per litre reduction in fuel excise, effective for three months — see updated Excise duty rates for fuel and petroleum products.
- A reduction of the heavy vehicle road user charge to zero for three months — increasing fuel tax credit rates available to eligible businesses.
- A six-month deferral of the next scheduled increase in the heavy vehicle road user charge, providing forward planning certainty for fuel-intensive businesses.
These changes are now law. If your business claims fuel tax credits, check the updated rates immediately via the ATO’s published schedule.
The ATO Fuel Response Payment Plan
For businesses experiencing genuine financial difficulty due to high fuel prices, the ATO has introduced a streamlined ATO Fuel Response Payment Plan — a temporary arrangement providing structured access to a payment plan specifically designed around current fuel cost pressures. Applications can be lodged through ATO Online Services for Business, or a registered tax agent can apply on your behalf with written authority.
This is in addition to pre-existing ATO hardship measures, including:
- Varying your PAYG instalment
- Remission of penalties and interest
- Priority processing of tax returns where activity statement refunds are expected
- Discretionary non-offsetting of credits against outstanding debts
What This Means for Specific Industries
Transport and Logistics
The combination of reduced fuel excise and zero heavy vehicle road user charge significantly improves fuel tax credit entitlements. Reviewing your BAS lodgments and ensuring fuel tax credit claims are accurately calculated should be a priority.
Construction
Plant, machinery and heavy equipment operators should review fuel usage and ensure fuel tax credits are being correctly claimed for eligible off-road use. The updated rates apply immediately.
Retail and Hospitality
Businesses with high delivery and distribution costs should review whether a PAYG instalment variation is appropriate if current instalments are based on prior-year income that no longer reflects current conditions.
What You Should Do Now
- Check the updated fuel tax credit rates effective 1 April 2026 and ensure your BAS reflects them.
- Consider varying your PAYG instalment if your taxable income will be materially lower than the prior year.
- If carrying an ATO debt, explore the Fuel Response Payment Plan promptly — it is a temporary measure.
How Pace Advisory Group Can Help
At Pace Advisory Group, we work proactively with clients across Melbourne to identify tax relief opportunities and manage cash flow through periods of uncertainty. If you need help with your fuel tax credit entitlements, PAYG instalment variations, or negotiating a payment arrangement with the ATO, our team is ready to assist.
Book a Consultation — paceadvisory.com.au
