ATO stops credit card payments after 30 November 2026: your other options
By PayMyTax · · 5 min read
The short answer
The ATO has confirmed it will stop accepting credit card payments after 30 November 2026, following the Reserve Bank's review of card payment costs and surcharging. The ATO said it would not be appropriate for the cost of credit card merchant fees to be transferred to the community. You can still pay by BPAY, direct debit, electronic funds transfer, at Australia Post or by phone, and businesses that relied on a credit card for cashflow can look at financing the bill instead.
Update 10 October 2026: the Government has extended the deadline. The ATO will now keep accepting direct credit card payments until 30 June 2027, and third-party card payments will continue after that. Read our updated article on ATO credit card payments until 30 June 2027.
What the ATO announced
On 30 September 2026 the ATO announced it will stop accepting credit cards as a payment method after 30 November 2026. The decision follows the Reserve Bank of Australia's Review of Merchant Card Payment Costs and Surcharging. The ATO said that, as a government agency, it would not be appropriate for the cost of credit card merchant fees to be transferred to the community. Until 30 November 2026 you can still pay by credit card, with the card payment fee the ATO passes on to payers.
Who is affected
- Businesses that pay their BAS, IAS or company tax on a credit card to buy time before the card bill is due.
- Anyone with an ATO payment plan or direct debit linked to a credit card. The ATO is writing to these taxpayers directly, and the payment method must be updated before the first instalment due after 30 November 2026.
- People who use card rewards points as part of paying tax.
The change affects a minority of taxpayers: the ATO says only about 2.3% of tax payments were made by credit card in 2024-25. But if your business is one of them, it is worth sorting out a replacement now rather than in late November.
How to pay the ATO without a credit card
- BPAY from your bank account, using the ATO biller code and your payment reference number.
- Direct debit from a bank account.
- Electronic funds transfer (EFT) to the ATO's bank account.
- In person at Australia Post.
- An ATO payment plan, with the general interest charge applying and no longer tax-deductible.
- Financing the bill through PayMyTax: pay part now via BPAY and defer the rest through a business loan.
If a credit card was your cashflow buffer, the closest replacement is short-term business finance, which pays the ATO directly and spreads the cost over weekly, fortnightly or monthly repayments.
Replacing your credit card buffer with a tax payment loan
Upload your BAS or IAS statement on the Customer Portal, choose how much to pay now via BPAY and how much to defer (from $5,000). The loan provider pays the ATO directly at settlement. Unlike a credit card, there is no surcharge question, and the interest on a business loan used to pay business tax is generally deductible (confirm your position with your accountant). See how it compares with an ATO payment plan, or estimate repayments with the payment calculator.
Common questions
- When will the ATO stop accepting credit cards?
- The ATO will stop accepting credit card payments after 30 November 2026. Until then you can still pay by credit card, with the card payment fee applying.
- Why is the ATO stopping credit card payments?
- The decision follows the Reserve Bank's Review of Merchant Card Payment Costs and Surcharging. The ATO said it would not be appropriate for the cost of credit card merchant fees to be transferred to the community.
- What if my ATO payment plan is linked to a credit card?
- The ATO is writing directly to taxpayers with a payment plan linked to a credit card. You will need to update the payment method before your first instalment due after 30 November 2026, which you can do through the ATO's manage payment plan guidance.
- How can I pay my BAS now?
- By BPAY, direct debit, EFT, at Australia Post, through an ATO payment plan, or by financing the bill through a provider such as PayMyTax.
- What is the best alternative to paying tax by credit card?
- For cashflow, a short-term business loan that pays the ATO directly works most like a credit card buffer, with fixed repayments and interest that is generally deductible for business borrowing. Check with your accountant how this applies to you.
Sources
Pay your tax now, repay over time
Upload your BAS or IAS statement and choose how much to pay now and how much to defer.
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.