Remove of ATO credit card payment option
If you use a credit card to pay your ATO tax bills, there is good news: you have more time to prepare for the upcoming change. However, this payment option will not be available forever.
The ATO has extended its credit card payment facility until 30 June 2027, giving businesses and individuals extra time to adjust their payment arrangements.
Why is the ATO removing credit card payments?
The ATO originally planned to stop accepting credit card payments after 30 November 2026, following the Reserve Bank’s ban on card surcharges from 1 October 2026.
Without being able to recover credit card fees from taxpayers, the ATO estimated it would face almost $200 million in additional annual costs.
The announcement raised concerns among small businesses that rely on credit cards to manage cash flow. In response, the Government provided temporary funding to extend the payment facility.
What does this mean for your business?
The extension means you can continue paying the ATO directly using a credit card until 30 June 2027.
From 1 July 2027, you will need to use another payment method, such as:
- Debit card
- BPAY
- Bank transfer
- Direct debit
- Australia Post, where available
- International money transfer services, where applicable
Some third-party providers may still allow credit card payments after the deadline, but additional fees and processing delays may apply.
Why should you review your payment arrangements?
Credit cards can provide short-term cash flow flexibility, especially when tax payments are due before your business receives its income.
However, relying on credit cards can also mean additional fees, interest costs and the risk of delayed payments.
Switching to another payment method may help you manage tax obligations more predictably. The best option will depend on your business’s cash flow and when funds are available.
If you currently have an ATO payment plan linked to a credit card, make sure you check how future instalments will be paid.
How can you prepare for the change?
Here are a few simple steps to help you get ready:
- Review your current payment method. Check whether you use a credit card for tax bills or regular ATO instalments.
- Choose an alternative. Consider whether BPAY, direct debit or bank transfer would work better for your business.
- Plan your cash flow. If you rely on your credit card’s interest-free period, consider setting aside funds earlier.
- Update payment arrangements early. Avoid waiting until the last minute to change your payment method.
- Seek advice if needed. If managing tax payments is putting pressure on your cash flow, reviewing your finances early can help you avoid unnecessary stress.
Start preparing before the deadline
The extension to 30 June 2027 gives businesses more time to adjust, but it is only temporary.
Planning ahead can help you avoid payment delays, unnecessary costs and cash flow challenges when the ATO’s direct credit card payment facility closes.
Need help preparing for the change?
Call us on 07 3483 0100 or send us a message if we can help you review your cash flow and plan for upcoming tax payments.
