Fuel relief is here. What businesses should do now

Rising fuel costs are putting fresh pressure on businesses already dealing with tighter margins, higher operating costs and less room to move.

For some, it is another frustrating cost increase. For others, especially businesses that rely on vehicles, freight, equipment or regular regional travel, it can have a direct impact on quoting, service delivery, profitability and day-to-day cash flow.

The Federal Government has announced a package of temporary fuel relief measures in response to rising fuel costs, including:

• halving fuel excise from 1 April to 30 June 2026, reducing fuel costs by 26.3 cents per litre
• reducing the Heavy Vehicle Road User Charge to zero for three months
• deferring the next scheduled increase to the Heavy Vehicle Road User Charge by six months
• introducing temporary ATO support measures for eligible businesses affected by high fuel costs until 30 June 2026, including flexible payment plans, potential remission of interest and penalties, and support to vary PAYG instalments where business income has fallen.

While a lower fuel bill can ease some pressure now, it does not automatically fix the bigger issues higher costs tend to expose, like thin margins, delayed cash flow, outdated pricing or obligations that have been pushed back for too long.

A useful window, but still only a window

The excise cut may reduce the cost of a 65-litre tank by nearly $19, which is meaningful for households and even more so for businesses running multiple vehicles or covering large distances each week. But these measures are only in place until 30 June 2026. 

For some businesses, this short-term change may create some breathing room, but for others, it will simply delay the next cash flow pinch.

Either way, this is a good time to look beyond the savings at the bowser and ask whether your business is still financially comfortable if fuel remains expensive after 30 June.

Look at the flow-on effect, not just the fuel bill

When input costs rise quickly, it is easy to focus on the headline number. But the real pressure usually shows up somewhere else.

It shows up in tighter margins, delivery or servicing costs that no longer line up with pricing, slower cash flow, and a growing gap between when work is done and when money comes in. That is why this kind of change is worth looking at across the whole business, not just as a fuel issue.

Revisiting short-term cash flow can be especially helpful here. A business may feel some relief during April, May and June, but still run into pressure later if customers are slow to pay, costs remain elevated or tax obligations have quietly built up in the background.

Review pricing while there is still time to adjust

Many businesses absorb higher fuel costs for longer than they should because they expect prices to settle or feel that changing pricing in the middle of client work or service delivery will be difficult. However, when fuel becomes a meaningful input cost, leaving pricing untouched can gradually erode profitability without it being obvious at first.

This may be the right time to review:

• freight and delivery charges
• call-out fees
• project pricing
• margins by customer or job
• whether some work is still commercially worthwhile at current rates

Rather than reacting to every short-term movement, it’s an opportunity to make sure your business is still charging in a way that reflects the actual cost of doing the work.

Stay ahead of tax obligations

The ATO has introduced temporary support for eligible businesses affected by high fuel costs, including more flexible payment plan arrangements, no upfront payment in some cases, possible remission of general interest charge (GIC) where conditions are met, and support to vary PAYG instalments where taxable income has reduced. The ATO has also made clear that businesses should still lodge on time and keep their records up to date. 

If fuel costs are starting to affect a business’s ability to meet BAS, PAYG or tax payment obligations, it is usually better to deal with that early rather than waiting until cash flow is tighter, debt has grown or lodgments have slipped behind.

Fuel is not the only issue

Fuel may be the immediate pressure, but it often brings other weaknesses into view.

Higher operating costs can reveal:

• underpriced work
• poor visibility over margins
• long delays between invoicing and payment
• over-reliance on a handful of customers
• tax liabilities being pushed back to protect cash flow
• not enough forecasting when costs move suddenly

That is why this moment is worth using well. Even temporary relief can create space to make decisions that strengthen the business beyond the next few months.

A note for transport and heavy vehicle businesses

For transport operators and businesses running heavy vehicles, the temporary fuel measures do more than reduce the price paid at the bowser. They also affect how fuel tax credits (FTC) are calculated and, in some cases, how fuel surcharges are passed on to customers.

This is because the fuel excise has been halved for three months, while the heavy vehicle road user charge has been reduced to zero over the same period. For eligible heavy vehicles, that changes the fuel tax credit rate that applies from 1 April to 30 June 2026. 

Some transport businesses may also need to review their fuel surcharge calculations, particularly where the formula includes a fuel tax credit or “government rebate” figure that may need to be manually updated for the temporary period.

In practical terms, transport businesses may need to review whether:

• the fuel tax credit rate being used from 1 April is correct
• fuel surcharge formulas reflect the temporary rate change
• BAS treatment and internal calculations are accurate for the April to June period
• records are clear enough to deal with the change again when the settings revert after 30 June 2026.

The ATO has confirmed it is administering temporary fuel measures from 1 April 2026, including changes linked to the reduction of the heavy vehicle road user charge to zero for three months. For businesses outside transport, this level of detail may not be relevant, but it is a useful reminder that not every cost change flows through in the same way across every industry.

Use the relief period well

The current measures may provide some welcome breathing room, but they are not a substitute for a business that is properly costed, well-priced and keeping ahead of its obligations.

The next three months should be a prompt to improve visibility over cash flow, revisit pricing, review tax settings and make sure your business is not simply relying on temporary relief to stay comfortable.

The businesses that are likely to come through this period best will be the ones that use it to get clearer on their numbers now, rather than waiting for the pressure to build again later.

How we can help

If rising fuel costs are starting to put pressure on your business, this can be a good time to step back and review the bigger picture.

That may include looking at cash flow over the next few months, reviewing whether pricing still reflects the real cost of doing the work, planning for upcoming tax obligations, and assessing whether there are broader issues affecting profitability, working capital or the overall structure of the business.

For some businesses, it may also be a useful time to revisit tax planning more broadly, particularly if income is shifting, margins are tightening or there is a need to make decisions before the end of the financial year. For transport and heavy vehicle businesses, there may also be extra areas worth reviewing, including fuel tax credit rates, surcharge calculations and how the April to June period is being handled for BAS and record-keeping purposes.

At Bonerath, we can help you review the impact across the business, not just the immediate fuel cost increase, so you can understand what needs attention now and where there may be opportunities to improve your position before the current relief measures end.

If rising fuel costs are affecting your business, Bonerath can help you review the bigger picture, understand what needs attention now and plan ahead with more confidence. Reach out to us for a chat.