If you pay the ATO by credit card, a change is coming. The ATO has announced it will stop accepting credit card payments after 30 November 2026. The news followed the start of the Reserve Bank's card surcharge ban on 1 October, and it has already drawn criticism from business groups.

What the ATO has said

The ATO's statement says that, as a government agency, it decided it would not be appropriate for the cost of credit card merchant fees to be passed on to the community. Reports say only about 2.3 per cent of tax payments used credit cards in 2024-25, so most businesses will not notice. But if you are one of the few who do, the change matters for your cash flow.

Why it is controversial

The Australian Chamber of Commerce and Industry has called the decision "utter hypocrisy". Its argument is that many small businesses only surcharged to cover the fees their payment providers charge, and now have to absorb those costs, while the ATO avoids them. Whatever your view, the date is the same: plan for it.

Who needs to act

  • Anyone paying BAS, PAYG instalments or a payment plan by credit card. If you use a card to stretch payments out, you will need another way to pay from December.
  • Anyone with a direct debit linked to a credit card. Reports say these must be moved to another payment method before the next instalment due after 30 November.

What you can use instead

Options reported include direct deposit, direct debit from a debit card, direct debit from an Australian cheque or savings account, Government EasyPay, paying in person at Australia Post, by mail, or through an international money remitter.

What to do now

  • Check how you pay today. Look at your last few ATO payments and any active payment plan.
  • Change direct debits early. Do not wait until the week your instalment is due, in case something goes wrong.
  • Rework your cash flow. If a credit card gave you a few weeks of breathing room, set aside funds earlier, or build the tax into a weekly savings habit.
  • Talk to the ATO if money is tight. The ATO has said it will contact affected taxpayers and support those facing financial hardship. Contacting them before a due date is always better than paying late.
  • Check your own card pricing. With surcharging banned, make sure the cost of accepting cards is built into your prices.

Paying late costs far more than a small change of payment method, so a quick review this month is time well spent.

This article is general information only and does not take your circumstances into account. Speak to your accountant before making decisions.