The Albanese Labor Government is working with the business and finance sectors to help ease the pressure on Australian families and small businesses.
The economic fallout of the war in the Middle East is affecting everyone, but by working together, we can help to shield Australians from some of the worst impacts.
We're coordinating action by regulators, industry and the broader community to help Australians doing it tough.
Today we're announcing further support and we welcome efforts by regulators and industry that provide support and flexibility at this difficult time.
This is about making our systems more flexible, supply chains more responsive, and businesses more supportive.
Tax system flexibility
We are announcing new measures in the tax system to give people more flexibility.
The ATO will provide temporary relief for businesses unable to meet their tax obligations due to fuel supply issues, where appropriate.
This will include more generous payment plans, remission of interest and penalties, and support in varying PAYG instalments where there has been a downturn in taxable income.
Some compliance actions will also be limited across the worst affected industries and some debt collection actions may be paused where appropriate.
The ATO will establish a dedicated channel that businesses can use to access these relief provisions, or they can contact their registered tax professional to request access on their behalf.
The ATO will also continue to provide support for individuals experiencing serious financial hardship and will monitor conditions in the lead up to Tax Time.
These are common‑sense steps that recognise and respond to the extraordinary circumstances we find ourselves in.
Helping small businesses access credit
We will help small businesses access easier and faster credit by extending the Small Business Responsible Lending Obligation exemption for a further 10 years.
This will ensure small businesses aren't slugged with additional regulatory burdens and delays when accessing loans.
Finance sector and broader industry support
We welcome commitments from businesses and peak industry bodies to proactively work with their customers, suppliers and employees to respond to pressures in the economy.
Australian banks and non‑bank lenders have put in place specialist teams to support small businesses, farmers and communities struggling with cost pressures and supply chain disruptions as a result of the conflict in the Middle East.
A number of options are available to customers doing it tough, including temporary payment deferrals, loan restructuring and emergency credit limit increases, depending on individual circumstances.
The Australian Banking Association will kickstart a new campaign Don't tough it out on your own - banking support when it matters most to help raise awareness about the options available to customers.
The Customer Owned Banking Association and Australian Finance Industry Association are also calling on customers experiencing hardship to get in contact with their lender to discuss options.
Individual Business Council of Australia (BCA) members have taken a range of actions in response to the crisis, including:
- Paying suppliers more frequently to help to improve cash flow and resilience
- Ensuring higher fuel costs are being reflected in what suppliers are paid
- Providing targeted support for vulnerable customers, like concession discounts and structured support such as bill pauses, tailored payment plans and account reviews to reduce cost
The Insurance Council of Australia (ICA) has committed to work with member companies to better support consumers seeking hardship assistance and will encourage small businesses to talk to their insurer about adjustments to premiums during this time.
The ICA will lead work across sectors to anticipate supply chain disruptions arising from the war in the Middle East and develop mitigation strategies in advance.
These steps build on existing hardship programs that many companies offer customers that find it hard to pay their bills.
We urge customers experiencing financial hardship to reach out to their bank, energy retailer, telecommunication provider and insurer to see what support is available.
The Government will continue to work with industry, regulators and the broader community to support Australians during this challenging period.
