As the Middle East conflict continues to cause economic concerns, the Australian Government has stepped up to support businesses in multiple ways.
Interest-Free Loans
The Australian Government’s $1 billion Economic Resilience Program (part of the National Reconstruction Fund) is providing zero-interest loans to help manufacturing and logistics businesses manage supply chain disruptions. Targeted at fuel, fertiliser, and critical industries, it aims to secure operations during market volatility, with loans available from until 2027.
Fuel Supply
The Middle East War has disrupted fuel supply chains globally. The Australian Government has confirmed that Australia’s fuel supply remains secure in the short term.
Whilst there may be local supply disruptions, particularly in regional areas, industry and governments are working to fix this as quickly as possible.
Businesses don’t need to stockpile or hoard fuel. Just keep buying based on your ordinary needs. Stockpiling flammable liquids such as petrol and diesel can be dangerous.
Fuel Excise Halved for 3 Months
To give some relief to the spike in fuel prices, the Australian Government has reduced the fuel excise on petrol and diesel by 32 cents per litre until 30 June.
Heavy Vehicle Road User Charge
The Heavy Vehicle Road User Charge has reduced to zero for 3 months. The next scheduled increase in the Heavy Vehicle Road User Charge will also be deferred by 6 months.
This will help reduce costs for businesses that drive heavy vehicles (such as trucks) on public roads.
National Fuel Security Plan
The National Fuel Security Plan coordinates a consistent response across the federal, state and territory governments.
The plan will keep the community and businesses informed and provides insights into any further fuel security measures that may be needed.
Supply Chain and Export Impacts
The global supply chain continues to navigate the most significant period of instability and volatility for Australian exporters since the COVID-19 pandemic.
Australian businesses should continue to plan for ongoing disruption across international sea and air freight, including:
• Higher freight rates
• Reduced service options
• Longer transit times
• Increased volatility across all major trade lanes, including Asia, Europe and the Middle East
If you ship to or through the Middle East, you should:
• Engage with your logistics partners
• Review your insurance coverage
• Tell your customers about potential delays and cost impacts
Fertiliser Supply
The Australian Government is monitoring fertiliser supplies and working with the industry to understand impacts and respond to issues.
Tax Obligation Flexibility
The Australian Taxation Office (ATO) will give temporary relief for businesses unable to meet their tax obligations because of fuel supply issues, where appropriate. This includes a tailored payment plan for businesses affected by the high price of fuel.
Accessing Credit
To help small business owners, the Small Business Responsible Lending Obligation exemption will extend for a further 10 years. This will make it easier for small businesses to access credit if they need it.
As a business owner you, you should consider:
• Reviewing supplier contracts and freight terms, including fuel surcharges and delivery timeframes
• Building flexibility into inventory planning where possible to manage delays
• Monitoring fuel prices and transport costs, especially if operating in regional or freight dependent sectors
• Keeping an eye on parcel delivery costs and adjusting your shipping rates if needed. Many delivery companies are increasing their fuel surcharges in response to higher fuel prices.
Get Help If You Need It
If you’re struggling with finances, you can access free, confidential support from a financial counsellor via the Small Business Debt Helpline on 1800 413 828 or the National Debt Helpline on 1800 007 007. If the current situation is impacting your mental health, you can access free support by visiting https://business.gov.au/risk-management/mental-health/mental-health-and-wellbeing-support-for-business