20 March 2026

No-one knows what will happen with fuel supplies to Australia. We do know governments have already begun planning for what could be a difficult time with urgent meetings of the National Cabinet, a new Fuel Supply Taskforce, initial behind the scenes planning around possible restrictions and targeted support packages for at-risk businesses and other groups.

It’s important to note that charities are a major employer (over 1.5 million staff and 3.5 million volunteers), have a large economic footprint (turn-over $220 billion+ per annum and assets above $435 billion), and play a critical role in the lives of millions of Australians and the communities they belong to.

There are five aspects of primary concern for charities and NFPs if fuel shortages become more acute and sustained.

In addressing these issues, CCA seeks to ensure charities are actively consulted about proposed measures to address what may be a significant challenge for many Australians.

1. Increased costs

Increased costs impact all charities and NFPs. Many need to use transport in their service provision, and many rely on goods and commodities that are likely to substantially increase in cost. Most charities and NFPs are already stretched very thinly to provide their valuable services. Most have very limited budget flexibility. An un-budgeted increase in costs will impact the capacity of charities and NFPs to continue to effectively meet community needs.

2. Reduced volunteers/staff availability

Many people who volunteer or work at charities rely on private transport. If the cost of fuel increases and availability decreases, some volunteers (and staff) may choose to save their fuel for essential purposes. This will again reduce the capacity of charities and NFPs to continue to meet community needs.

3. Increased demand for emergency relief and essential services

The COVID experience highlighted that in times of economic pressure, demand for emergency relief and other support services increases significantly. Vulnerable people become more vulnerable when new challenges arise, and this can be seen across a broad range of services. Demand for domestic violence support, for instance, is likely to increase if economic pressures rise. An unplanned increase in service demand is very difficult to respond to if there is not an increase in funding for charities and NFPs.

4. Declining income

Many charities and NFPs rely on donations, sponsorships and philanthropy to enable them to provide vital services to communities. Australia is already seeing a significant drop in consumer confidence and typically this translates into less fundraising and philanthropic income across the charities and NFP sector. At a time of rising costs, the likely decline in donations will undoubtedly hit some charities.

Another source of income for some charities and NFPs is fees for the services they provide. As we saw in the COVID pandemic, when people travel less and participate less in group events this can negatively impact the income streams of many charities and NFPs that rely on fee for service type income.

5. Reduced social cohesion and increased vulnerability

Charities and NFPs are the backbone of many communities and especially vulnerable population groups. Charities and NFPs bring people together to provide opportunities to positively engage, build understanding, offer important services, support and hope. When the pressure on community relationships increases, it’s important that charities and NFPs have the resources they need to ensure individual, family and community resilience is supported and encouraged. A reduction in the capacity of charities and NFPs to respond to vulnerable community needs during a fuel shortage crisis would not only lead to more harm, it would also translate into higher costs for governments in the medium to longer term.

Conclusion

CCA believes our governments at every level will be able to steer an appropriate course through what may be very challenging waters over the coming months, but governments cannot do it alone. Business has a role. Charities and NFPs have a role.

At CCA we believe the best way to maximise the contribution of charities and NFPs in addressing challenges is to actively engage with the sector to ensure what is needed is being provided. CCA is happy to play a role in this engagement.

Should the situation deteriorate, it’s charities and NFPs that will again provide the fundamental services that connect people and offer support to those most in need.

CCA ask that our concerns and issues be fully considered in any measures to address the emerging challenges of a global fuel shortage and its impact upon Australia.