Two Separate Government Support Programs for Businesses Impacted by Fuel and Supply Chain Disruption

Rising fuel costs and ongoing global supply chain disruption continue to place pressure on many Australian businesses. In response, the Government has introduced two separate support programs, each designed to assist businesses in different ways.

While often referenced together, these programs are entirely distinct:

• One provides access to business finance
• The other provides temporary tax payment relief

Understanding the difference and which may apply to your business is important.

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Program 1: Economic Resilience Program

(Access to Zero Interest Business Finance)

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The Economic Resilience Program is administered through the National Reconstruction Fund and is designed to support eligible businesses by providing zero interest loans.

How this program supports businesses

This program focuses on improving access to capital for businesses that have been materially impacted by market disruption, including fuel and supply chain pressures.

Key points:

• Zero interest loans (not grants)
• Loan principal must be repaid
• Intended to support cash flow and business continuity

Who this program is aimed at

The program is targeted at businesses operating in critical supply chains, particularly across:

• Manufacturing
• Transport and logistics
• Fuel, fertiliser and plastics supply chains

How funding is accessed

• Businesses with turnover under $100 million may apply for loans of up to $5 million through participating banks. These loans must be repaid within 2 years.
• Larger businesses, or those seeking more than $5 million, apply directly to the National Reconstruction Fund for tailored concessional finance. Timeframes for repayment of these loans is tailored to the customer’s needs.

Funding cannot be used to repay existing loan obligations.

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Program 2: ATO Fuel Response Payment Plan

(Temporary Relief for Existing Tax Obligations)

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The ATO Fuel Response Payment Plan is a separate support measure, administered by the Australian Taxation Office.

How this program supports businesses

This measure is designed to help eligible businesses manage existing tax debts where increased fuel and transport costs have reduced their capacity to pay.

Support may include:

• Tailored ATO payment plans
• No upfront payment required
• Up to 36 months to repay tax debt with automate remission of interest charges imposed in respect of the first three months
• Potential remission of interest charges imposed after the first 3 months

Who this program may suit

This measure may be available to ABN holding businesses that can demonstrate:

• Increased operating costs directly or indirectly attributable to fuel
• Difficulty servicing current ATO liabilities
• Reduced capacity to pay specifically due to fuel related cost pressures

A clear distinction

Put simply:

• The Economic Resilience Program provides access to business funding
• The ATO Fuel Response Payment Plan provides temporary flexibility in how tax debts are paid

They are administered by different agencies, for different purposes, and operate independently.

If you would like to discuss whether either of these programs may support your business, we encourage you to get in touch with your Sovereign Private adviser for a confidential discussion.

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