The Australian Taxation Office will keep accepting ATO credit card payments until 30 June 2027, after the Government stepped in to delay a planned ban. According to The New Daily, the ban was due to start on 1 December 2026.
What the Government announced
A joint release on 9 October from Treasurer Jim Chalmers, Small Business Minister Anne Aly and Assistant Treasurer Daniel Mulino said the Government will provide transitional funding for the extension, with final costs to be settled in the Mid-Year Economic and Fiscal Outlook. The release said: “This decision is about putting small business first.”
The Government has also asked the ATO to consult on support for taxpayers in financial hardship, and on alternative arrangements for people who cannot pay by other methods.
Why the ban was on the table
The ATO sought lower fees from card companies after the Reserve Bank’s surcharging reforms, but the Government says the companies did not offer fees low enough to keep accepting cards. The New Daily reports the ATO estimated absorbing card fees would cost about $200 million a year. Commissioner of Taxation Rob Heferen said tax liabilities are set by law, so the ATO cannot build card payment costs into its prices.
How many people pay by card
Government figures show ATO credit card payments were used by just over 2 per cent of individuals and around 5 per cent of small businesses in 2024-25.
What happens to ATO credit card payments after 30 June 2027
The Government says ATO credit card payments will still be possible through third-party providers, alongside free and low-fee options such as debit card and bank transfer. The ATO advises anyone planning to keep using a credit card to weigh up the fees, charges and processing times of third-party providers, and to check a provider is legitimate before paying or sharing information.
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General information only, not legal or financial advice. Check the official source before acting.
Sources: ATO; Treasury ministers; The New Daily.
