Home topics news Skye Cappuccio News News COSBOA welcomes fuel relief as government, banks and ATO coordinate response Yajush Gupta April 2, 2026 The ATO is offering payment flexibility and penalty remissions for small businesses hit by rising fuel costs. COSBOA CEO Skye Cappuccio says the relief is practical and proportionate. What’s happening : The Council of Small Business Organisations Australia has welcomed a coordinated government response to rising fuel costs, including temporary ATO relief measures covering payment flexibility, penalty remissions and tailored compliance support. Why this matters : For small business owners, the combination of surging fuel prices, consecutive interest rate rises and weakening consumer sentiment has created one of the most difficult operating environments in recent memory. The fuel crisis gripping Australia did not arrive quietly. Over recent weeks, escalating conflict in the Middle East and disruption near the Strait of Hormuz, a chokepoint for roughly one fifth of global oil supply, sent fuel prices surging across the country. In some regional areas, diesel climbed to $3.20 per litre and above, with the pressure felt most acutely by businesses with no alternative to fuel as a core operating cost. COSBOA had already flagged the severity of the situation before government relief was announced. CEO Skye Cappuccio described the environment facing small businesses as a pressure cooker, with 64% of small businesses reporting lower profits over the past year and 60% unable to pay themselves at least occasionally, according to COSBOA’s own Small Business Perspectives Report. “Many small businesses