The fuel crisis response is complex and moving quickly. Here is what it all means for your business
In the space of roughly two weeks, the Australian Government has moved faster on business relief than at almost any point since the COVID pandemic.
The trigger is a fuel crisis driven by the ongoing conflict in the Middle East, which has sent diesel prices surging, disrupted global supply chains, and created acute financial pressure for Australian businesses in transport, logistics, agriculture, and manufacturing.
The response has come in multiple forms simultaneously, and for small business owners trying to keep track of what is available and what is now required, the picture has become complex quickly. This is an attempt to put the full picture in one place.
Securing the supply
The most recent development came this week when the Albanese Government announced it had secured a further 200 million litres of additional diesel for Australia under its new Strategic Reserve powers, bringing the total additional diesel secured in the past seven days to approximately 300 million litres, or more than 1.8 million barrels. The Government has partnered with BP Australia and continued its partnership with Viva Energy, with work continuing alongside Ampol, Park Fuels, IOR, and other fuel suppliers to secure additional shipments in coming days and weeks.
Alongside the diesel supply measures, the Government announced it is working with fertiliser companies Incitec Pivot and CSBP to secure and deliver essential fertiliser for Australian farmers ahead of the current and upcoming growing seasons. The package involves price risk support to protect importers from extreme price volatility. Minister for Agriculture Julie Collins described the fertiliser support as a significant outcome for farmers, noting that fertiliser is critical to Australia’s food production system and the food security of the broader region.
Prime Minister Albanese framed the response in terms of its ongoing nature. “As conflict in the Middle East and global volatility continues, we are working to shield Australians from the worst of the impacts,” he said. “We want to keep our people, our economy and our nation moving, which is why we’re working with industry to quickly secure additional shipments of fuel and fertiliser.”
The money available now
On 20 April, the Government’s $1 billion Economic Resilience Program opened for applications. Drawn from the National Reconstruction Fund, the program provides zero-interest loans of up to $5 million for eligible businesses in freight, fuel, fertiliser, plastics, and other critical supply chain sectors. Loans carry a term of up to two years, with the principal to be repaid in full and standard bank fees applying. No interest is charged.
Applications are currently processed through six participating banks: ANZ, Commonwealth Bank, National Australia Bank, Westpac, Bendigo Bank, and Bank of Queensland. Businesses with annual turnover of $100 million or less and seeking loans of up to $5 million apply through these banks. Larger businesses and larger loans are handled directly through the National Reconstruction Fund Corporation. The program window is six months and funds are limited, which means businesses that are eligible should move quickly.
The program has drawn criticism from non-bank lenders, who argue that many of the businesses most in need already use non-bank lenders for their day-to-day finance and currently have no pathway to apply. Moneytech CEO Nick McGrath has called on the Government and the NRFC to open consultation with the non-bank sector on accreditation. “Many of the businesses this program is designed to help already rely on non-bank lenders for their day-to-day finance,” McGrath said. The NRFC has indicated more lenders may be added to the program over time.
The ATO has also launched a dedicated fuel response package, available until 30 June 2026, offering more flexible compliance and collection arrangements for businesses whose cash flow has been directly affected by rising fuel and transport costs.
The new compliance obligations
On 21 April, a new legal obligation took effect for businesses operating in road transport supply chains. The Fair Work Commission’s Road Transport Contractual Chain Order, Fuel Cost Recovery, 2026 requires primary and secondary parties in road transport contractual chains to adjust their rates fortnightly, or twice per calendar month, to ensure transport operators can recover the increased cost of fuel since 6 March 2026.
The order applies to businesses at every level of the road transport contractual chain, not just transport companies themselves. Any business that contracts road transport services, whether for deliveries, freight, distribution, or logistics, may be a primary party with obligations under the order. Existing rise-and-fall clauses already in contracts may satisfy the adjustment obligation. Disputes can be referred to the Fair Work Commission. The Fair Work Ombudsman has authority to investigate and enforce the order.
The order will remain in force until the weekly average national terminal gate price for diesel falls below $2 per litre, and will be reviewed monthly for the first month and then every three months. SME owners with road transport contracts should review those contracts now to understand their position under the order.
What the data says on the ground
While the government response has moved quickly, the Equifax Business Market Pulse for March 2026 captures how much pressure had already built up before these measures took effect. Overall SME credit demand fell 5.8% year on year in March, while large business demand rose 5.9%. The divergence reflects a business sector where larger, better-capitalised companies are accessing credit to navigate the disruption, while smaller operators are pulling back.
In the logistics sector specifically, the data tells a particularly acute story. Business loan demand in logistics fell 11.6% year on year in March, but trade credit surged 16%, the highest trade credit growth of any major sector. The pattern indicates that logistics operators are using credit lines to cover fuel costs and keep operations running rather than to fund growth or investment. New ATO tax debt disclosures in the logistics sector nearly doubled, rising 97.7% year on year in March, indicating that the financial pressure in this sector is translating directly into tax debt accumulation.
Across the broader business sector, new ATO tax debt disclosures rose 37.8% year on year in March, with company insolvencies remaining at elevated levels and business-related personal insolvencies continuing to rise. For SME owners already carrying overdue tax obligations, the combination of fuel cost pressure, the ATO’s ongoing enforcement posture, and the arrival of Payday Super on 1 July 2026 represents a compounding set of pressures that the government’s relief measures, welcome as they are, do not fully resolve.
The one genuinely positive data point in the March figures is Queensland construction, where business loans surged 24% year on year, driven by infrastructure projects for the Brisbane 2032 Olympic and Paralympic Games. It is a reminder that the fuel crisis is not affecting every sector or every region equally, and that for businesses in growth-oriented sectors and states, the underlying conditions remain constructive.
For SME owners navigating all of this, the practical priorities are straightforward. If you are in an eligible sector, apply for the Economic Resilience Program through your bank as early as possible. If you have road transport contracts, review them against the new fortnightly rate adjustment obligation. If you are carrying ATO debt, contact the ATO about the fuel response package before enforcement action escalates. And if you use a non-bank lender and cannot currently access the loan program, monitor the NRFC’s accreditation announcements as the program evolves.
The government has moved quickly and the response is meaningful. But the crisis is ongoing, and for many Australian small businesses, the measures now in place are a floor of support rather than a full solution.
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