What's changing?
The ATO announced on 1 October 2026 that it will stop accepting Visa, Mastercard and American Express credit cards after 30 November 2026 (ATO). This applies to all tax payments, including BAS, PAYG instalments and income tax.
Why is the ATO stopping credit card payments?
From 1 October 2026, the Reserve Bank banned card surcharges (RBA). The ATO used to pass its credit card fees on to taxpayers as a small surcharge. It can't do that anymore, and it doesn't want the wider community to cover those fees, so it's dropping credit cards altogether.
How can I pay the ATO instead?
You can still pay by:
Debit card (no fee)
BPAY
Bank transfer (EFT)
Direct debit from your bank account
In person at Australia Post
Full details are on the ATO's payment options page.
How will this affect small businesses?
Less breathing room for cash flow. A credit card could give you up to around 55 days before the money actually left your account. Now tax payments come out straight away.
Payment plans need updating. If your ATO payment plan is linked to a credit card, change it before your next instalment after 30 November, or you could default on the plan (ATO: manage your payment plan).
Higher risk of interest charges. If a tight month means you pay late, the ATO adds a general interest charge that grows every day.
No more rewards points. You'll no longer earn credit card points on tax paid directly to the ATO.
Business groups aren't happy. The Australian Chamber of Commerce and Industry called the move "utter hypocrisy", since small businesses must now absorb card fees themselves (SmartCompany).
What should I do before 30 November?
Check whether any ATO payments or payment plans use a credit card, and switch them.
Write down your upcoming tax due dates and how much cash you'll need for each.
Set aside GST and PAYG money in a separate account as you collect it.
Ask your bank about an overdraft or line of credit as a backup.
If you can't pay on time, contact the ATO early about a payment plan.
Handy tip: until 30 November, the ATO charges no card fee at all. Paying a current tax bill by credit card before then costs nothing extra.
The bottom line
The change is simple, but it needs planning. Update your payment details now and build tax money into your cash flow, so the December BAS doesn't catch you out.
This article is general information only, not financial or tax advice. Talk to your accountant or registered tax agent about your situation.
