Businesses can pay the ATO by credit card until 30 June 2027: what you need to know
By PayMyTax · · 7 min read
The short answer
On 9 October 2026 the Australian Government announced the ATO will keep accepting direct credit card payments until 30 June 2027. After that date the ATO will stop taking credit cards directly, but you can still pay by credit card through a third-party provider, or use debit card, bank transfer, BPAY and other low-cost methods. Use the extra time to check whether a credit card is really the right way for your business to fund its tax bills.
Businesses in Australia that pay their ATO liabilities using a credit card have been given more time. On 9 October 2026 the Australian Government announced that the ATO will continue to accept direct credit card payments until 30 June 2027, replacing the earlier 30 November 2026 cut-off covered in our article on the ATO stopping credit card payments. The ATO will also continue to accept credit card payments made through a third party after 30 June 2027.
What has changed?
The ATO had been moving to phase out direct credit card payments following reforms to card surcharging in Australia. The Government has now provided transitional funding so the ATO can keep accepting direct credit card payments until the end of the 2026-27 financial year. The new date is 30 June 2027.
The Government says this gives the ATO more time to work with affected taxpayers and businesses, and to consider other options, including assistance for those who may face financial difficulty.
Why does this matter to small businesses?
Credit card is not the most common way to pay the ATO, but the Government says approximately 5% of small businesses paid their ATO liability by credit card in 2024-25. For many of them it is about cash flow, not just convenience. A business may face a $20,000, $50,000 or $100,000 tax bill while waiting on customer invoices and still paying suppliers, wages and stock.
A credit card can bridge that gap, but it can also become expensive revolving debt on top of normal business needs. So the extension is more than eight extra months of card payments. It is a chance to rethink how your business pays its tax. Our guide to paying your ATO tax bill when cash flow is tight covers the main options.
What happens after 30 June 2027?
After 30 June 2027 the ATO will continue to accept:
- Credit card payments made through a third-party provider
- Debit card payments
- Bank transfers and BPAY
- Other low-cost and free payment methods
This is not a total ban on using a credit card for ATO payments. What ends on 30 June 2027 is paying the ATO directly by credit card. Headlines calling it a credit card ban are too simplistic.
Why is the ATO moving away from direct credit card payments?
The change relates to reforms to card surcharging in Australia. The ATO looked at alternatives, including lower fees from card companies. According to the 9 October announcement, card companies did not offer fees low enough for the ATO to keep accepting direct credit card payments, so the Government provided transitional funding to the end of the 2026-27 financial year.
Five questions to ask if you pay the ATO by credit card
1. Why are we using the credit card? Paying for convenience and clearing the balance straight away is very different from not having the cash to cover the bill. If you carry the balance, the card is acting as a business loan.
2. What does it actually cost us? Look beyond the minimum repayment: the interest rate, card fees, how long the debt stays outstanding, the total interest, and what else that credit line could have been used for.
3. Will this debt be repaid before the next tax bill arrives? If a quarterly BAS is still on the card when the next BAS is due, tax-related debt can build faster than it is repaid.
4. What happens to our available credit? A $50,000 ATO payment on a business card also uses up $50,000 of credit you may need for suppliers, travel, stock and emergencies. That opportunity cost is easy to miss.
5. Is there a better way to pay the tax? Depending on your situation, options include available business cash, an ATO payment plan, business or bank finance, third-party payment providers, or finance designed for an ATO liability. Compare them in our guide to ATO payment plans and our article on what happens if you can't pay your ATO tax bill on time.
Example: a $50,000 ATO liability
Imagine a business has a $50,000 ATO bill and enough room on its business card to pay it. Before paying, ask how the $50,000 will be repaid. If receivables will clear it within weeks, the card may be a short bridge. If the balance will sit there for six or twelve months, the card is really a loan, and it should be compared with other business finance on suitability, cost and repayment. Our short-term vs long-term unsecured business loans guide can help with that comparison.
What about an ATO payment plan?
For some businesses an ATO payment plan is worth considering. Business finance and an ATO payment plan are not the same: they have different terms, eligibility, interest costs and tax treatment. In particular, interest the ATO charges on unpaid tax debts is no longer deductible from 1 July 2025, while interest on business borrowing may be deductible. Confirm your position with your accountant. See our articles on whether tax loan interest is deductible and why not just use an ATO payment plan.
How PayMyTax fits in
PayMyTax helps eligible Australian businesses explore finance options for their ATO liabilities. PayMyTax is not the ATO and is not a lender. Any finance is provided by a third-party lender that specialises in tax lending, subject to its terms, interest charges, fees, eligibility criteria and assessment, and the lender pays the ATO directly at settlement. Finance is not always the right option, so explore your choices before the payment is due. Try the Tax Pay Calculator for indicative figures, or get started when you are ready.
Don't wait until 30 June 2027
The right response is not "we have until June". Use the extra time to review how your recent BAS and tax bills were paid:
- Were they paid from operating cash or by credit card?
- If by card, how long did it take to repay them?
- Was an earlier balance still outstanding when the next tax bill arrived?
- What did that payment method actually cost the business?
The bottom line
- The ATO will keep accepting direct credit card payments until 30 June 2027.
- After 30 June 2027 the ATO will still accept credit card payments through a third party, plus debit card, bank transfer and other free and low-cost methods.
- If you regularly pay tax by credit card, use this transition period to check whether it is the right option for your business.
Common questions
- Can I still pay the ATO by credit card?
- Yes. The ATO will continue to accept direct credit card payments until 30 June 2027, following the Government's announcement on 9 October 2026.
- What changes after 30 June 2027?
- The ATO will stop accepting direct credit card payments. You can still pay by credit card through a third-party provider, or use debit card, bank transfer, BPAY and other low-cost or free methods.
- Is the ATO banning credit cards?
- Not completely. Only direct credit card payments to the ATO end after 30 June 2027. Third-party credit card payments will still be accepted.
- Why was the deadline moved from 30 November 2026?
- The Government provided transitional funding so the ATO could keep accepting direct card payments to the end of the 2026-27 financial year, giving businesses more time and allowing other options, including hardship assistance, to be considered.
- How many businesses pay the ATO by credit card?
- The Government says approximately 5% of small businesses paid their ATO liability by credit card in 2024-25.
- What is an alternative to paying a large ATO bill by credit card?
- Options include business cash, an ATO payment plan, business or bank finance, or finance for an ATO liability through a specialist tax lender, where the lender pays the ATO directly. The right choice depends on cost, repayment capacity and your circumstances, so speak with your accountant.
Sources
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General information only. This article does not take your personal circumstances into account and is not tax, financial or legal advice. Speak with your accountant or tax adviser before acting. PayMyTax is operated by Tax Hitech Pty Ltd ABN 38 642 032 666 and is not a lender. See also our ATO payment plans guide.