In our last newsletter we covered the end of card surcharges for businesses from 1 October 2026. The same change has flowed through to how the ATO accepts payments, and there has been an update this month.
The current position
According to the ATO, it will continue accepting credit card payments for tax obligations until 30 June 2027. The ATO announced this on 9 October 2026, following discussions with the government and the provision of transitional funding.
After 30 June 2027, the ATO says, "you will no longer be able to use a credit card to make payments to the ATO". Other payment methods will remain available.
No surcharge in the meantime
Before 1 October, paying the ATO by card attracted a surcharge. With card surcharges now banned, that surcharge no longer applies. Until 30 June 2027, the cost of accepting cards is being covered by the transitional funding rather than passed on to taxpayers.
Some credit cards also earn reward points on ATO payments, often at a lower rate than on everyday purchases. Many cards don't earn points on ATO payments at all; it depends on each card's terms.
How many people pay by card?
Fewer than you might think. According to the ATO, only 2.3% of tax payments were made by credit card in the 2024–25 financial year, and around 5% of small businesses paid by card.
Other ways to pay
The ATO lists other payment options, including BPAY. Debit cards and bank transfers will also continue to be accepted.
For those who wish to keep using a credit card after 30 June 2027, the ATO says third-party payment providers may be used. The ATO encourages taxpayers considering these options to "carefully consider relevant fees, charges and processing timeframes".
A word on timing
Payments made through the ATO's online services can take up to four business days to reach the ATO and appear on the account. According to the ATO, if a payment is late, the taxpayer is responsible for any interest charges that may apply. This is worth keeping in mind when a due date is close.
Be alert to scams
The ATO also reminds taxpayers to remain vigilant against scams, and to check the credentials of any third-party provider before sharing information or making a payment.
Support
The ATO says it is consulting on how best to support people experiencing financial hardship, and on alternative arrangements for those who are unable to pay by other methods.
Sources
- Australian Taxation Office, ATO extends transition period for taxpayers using credit cards until 30 June 2027, media release, 9 October 2026 – ato.gov.au/media-centre
- Australian Taxation Office, Pay with our online services, last updated 9 October 2026 – ato.gov.au
This article is general information only. It doesn't take into account your personal circumstances and isn't financial product advice. Please speak with us before acting on anything here.
