If you were bracing for the ATO to stop taking credit cards on 30 November, you now have more time. On Friday 9 October 2026, the Treasurer, Assistant Treasurer and Small Business Minister announced the ban will be delayed until 30 June 2027, after pushback from small business groups.

What has been announced

  • The ATO will keep accepting credit cards until the end of the financial year. The government will fund this, with the cost to be shown in the December budget update.
  • The ATO will consult on support. This includes targeted help for taxpayers facing financial hardship and alternative payment arrangements for people who cannot use other methods.
  • After 30 June 2027, the ATO is expected to keep accepting card payments made through third party providers, along with free and low fee options such as debit card and bank transfer.

The Council of Small Business Organisations Australia welcomed the extension, while the Opposition said the ban should be scrapped rather than delayed. Details of the alternatives are still to come, so treat this as a delay, not a permanent fix.

Why many owners use a credit card for tax

Paying a BAS or PAYG instalment by card can bridge a short cash flow gap and may earn rewards points or give you a few extra weeks before the card bill is due. That can help, but card interest is expensive if you cannot clear the balance.

What to do now

  • Do not skip the payment. The ATO due dates have not changed. The September quarter BAS is still due on 28 October.
  • Build a tax buffer. Set aside GST, PAYG and super in a separate account each week so you rely less on a card when a bill falls due.
  • Check your debit and bank transfer limits. Make sure your daily limits can handle a large BAS payment, so you are not caught short on the due date.
  • Talk to the ATO early if cash is tight. A payment plan set up before the due date is far better than a missed payment.
  • Update your cash flow forecast. Plan for a world where tax is paid from cash or a bank account by mid 2027.
  • Watch for updates. The ATO is expected to share more detail as consultation progresses.

The bottom line

The extra seven months is a chance to get your cash reserves in order, not a reason to leave it. If you have been relying on a credit card to meet tax bills, talk to your accountant now about smoothing your cash flow before the change finally arrives.