The ATO has announced that it will stop accepting credit card payments for tax liabilities after 30 November 2026. This change follows the Reserve Bank of Australia’s review of merchant card payment costs and surcharging. The ATO has stated that it does not consider it appropriate for the cost of merchant fees to be passed on to the broader community.
What Does This Mean For Taxpayers?
From 1 December 2026, taxpayers will no longer be able to pay tax debts, activity statements, instalments or payment plans using a credit card.
For many taxpayers, particularly business owners who have used credit cards as a short-term cash flow management tool, the change may require a review of existing payment arrangements and funding strategies.
Taxpayers with existing ATO payment plans that are linked to a credit card will need to update their payment method before their next instalment due after 30 November 2026. The ATO has advised that it will contact affected taxpayers directly with regard to existing payment plans however we advise taxpayers to be proactive on this.
Alternative Payment Options
The ATO will continue to offer a range of payment methods, including:
- Direct debit;
- Debit cards;
- BPAY;
- Third party intermediary platforms, which accept credit card payments from customers and pay the ATO by bank transfer e.g. pay.com.
- Electronic funds transfer (EFT); and
- Other payment options outlined by the ATO.
What Should You Do Now?
If you currently use a credit card to pay tax obligations, we recommend that you:
- Review any recurring payment arrangements with the ATO.
- Consider alternative funding methods for future tax payments.
- Assess the cash flow impact on your business.
- Update any payment plans linked to a credit card before December 2026.
If you are concerned about how this change may affect your business or cash flow, please contact us to discuss how we can assist you.
Further information: www.ato.gov.au/media-centre/ato-to-stop-accepting-credit-cards-after-30-november-2026 and www.ato.gov.au/individuals-and-families/paying-the-ato/how-to-pay