ATO stops accepting credit cards: what it means and your other options
By PayMyTax · · 5 min read
The short answer
From 1 October 2026, card networks introduced 'no surcharge' rules, so merchants and government agencies can no longer pass card fees on to customers. In response, the ATO announced it will stop accepting credit card payments from 30 November 2026. 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.
What happened
The Reserve Bank concluded it was in the public interest to remove card surcharging, allowing the eftpos, Mastercard and Visa networks to ban surcharges from 1 October 2026. Previously, the ATO charged a surcharge of roughly 0.94% to 2.03% on card payments. Rather than absorb those merchant fees, the ATO decided to stop accepting credit cards from 30 November 2026.
Who is affected
- Businesses that paid their BAS, IAS or company tax on a credit card to buy time before the card bill was due.
- Anyone with an ATO payment plan or direct debit linked to a credit card. These need updating before the first instalment after 30 November 2026.
- People who used card rewards points as part of paying tax.
Your payment options after 30 November 2026
- 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.
How PayMyTax fills the gap
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. See how it compares with an ATO payment plan, or estimate repayments with the payment calculator.
Common questions
- When does the ATO stop accepting credit cards?
- The ATO has announced it will stop accepting credit card payments from 30 November 2026.
- Why is the ATO stopping credit card payments?
- Card networks banned surcharges from 1 October 2026, so the ATO can no longer pass card fees on, and it decided not to absorb those costs.
- 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.
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.