Good news if you pay your tax by credit card: you have more time. The Australian Taxation Office (ATO) had planned to stop accepting credit cards after 30 November 2026. Following discussions with the government and the promise of transitional funding, it will now keep accepting credit card payments until 30 June 2027.

Why the ATO is making this change

The change follows the Reserve Bank of Australia's reforms to card surcharging. The ATO tried to negotiate lower fees with the credit card companies, but they didn't offer fees low enough for the ATO to keep accepting cards. The ATO says it will keep talking to the card companies.

In the meantime, the government will fund the cost of accepting credit cards until the end of the 2026–27 financial year. That gives the ATO time to consult with affected taxpayers and work out targeted support.

Who is affected

Just over 2% of individuals and around 5% of small businesses paid their tax by credit card in 2024–25. You're most likely to be affected if you:

• pay your BAS or tax bill by credit card to smooth out cash flow between the due date and your card statement
• have an ATO payment plan linked to a credit card
• use a credit card for rewards points on large tax payments

What happens after 30 June 2027

From 1 July 2027, you won't be able to pay the ATO directly by credit card. You'll still have two options:

• Use a third-party payment provider. These services let you keep paying by credit card, but they charge their own fees and can take longer to process. The ATO recommends checking the fees, charges and processing times carefully, and confirming that any provider is legitimate before sharing your details, as scammers may try to take advantage of the change.

• Switch to a free or low-fee method. These include debit card, bank transfer (EFT), BPAY and payment through ATO online services. Full details are on the ATO's How to pay page.

Four ways to use the extra time

• Check your payment plan. If it's linked to a credit card, plan to move it to a bank account well before 30 June 2027 so no instalment is missed.

• Build a cash flow buffer. If a credit card currently bridges the gap at BAS time, start building that buffer into your cash flow now rather than in June.

• Set aside tax as you go. A separate account for GST, PAYG withholding and income tax instalments means the money is ready when it's due, without relying on credit.

• Do the maths on third-party providers. If you want to keep paying by card after June 2027, compare the provider's fees with the value of any points or interest-free days you'd get. Often the fee outweighs the benefit.

If you're struggling to pay

If you can't pay on time, don't ignore it. The ATO says it will continue to support taxpayers experiencing financial hardship, and you can contact it on 13 11 42 or speak with your registered tax agent. Acting early gives you more options, such as a payment plan you can actually manage.

How Count Gold Coast can help

Our Tax and Accounting team can review your upcoming tax obligations, help you build a cash flow forecast, and talk to the ATO on your behalf about a payment plan if you need one. Call 1300 667 897 or email [email protected] to have a plan in place well before 30 June 2027.

This article contains general information only and does not take into account your personal circumstances. Seek professional advice before acting on it.

Sources

ATO – ATO extends transition period for taxpayers using credit cards until 30 June 2027

Treasury Ministers – ATO to continue accepting credit cards until 30 June 2027

ATO – How to pay

ATO – Managing your payment plan
 

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