ATO Credit Card Payment Ban Delayed to 30 June 2027: What Small Businesses Should Do
If you pay your BAS, PAYG or tax bill with a credit card, the rules around ATO credit card payments have changed twice in the past month. The good news is that you still have time. The less good news is that the ATO credit card ban has been delayed, not cancelled, so now is the time to plan.
Information current as at 29 October 2026. This is a developing issue, so please check the ATO website for the latest.
What happened to ATO credit card payments?
The story started with card surcharges. From 1 October 2026, businesses can no longer add surcharges to payments made on specified debit and credit card networks, including Visa, Mastercard and EFTPOS.
The ATO said it could not absorb the cost of card fees, so on 1 October it announced it would stop accepting credit cards after 30 November 2026.
After pushback from small businesses, the government stepped in. The ATO delayed the ban until 30 June 2027, with extra government funding to cover card payment fees during that time.
What does this mean right now?
For now, nothing changes in how you pay.
You can keep paying the ATO by credit card until 30 June 2027. The government is covering the card costs, so there is no surcharge for paying the ATO by card.
Debit cards are not affected. The proposed ban only applies to credit cards, and debit card payments to the ATO will continue.
Allow time for the payment to arrive. Card payments through ATO online services can take up to 4 business days to appear on your ATO account, so pay before the due date, not on it.
What happens after 30 June 2027?
The ATO’s website states that after 30 June 2027 you will no longer be able to pay the ATO with a credit card, although other payment methods will remain available.
The ATO says it will keep consulting with stakeholders on how to support people in financial hardship, and on alternative arrangements for those who cannot pay by other methods.
If you still want to use a credit card after that date, the ATO says you can use a third-party payment provider. These providers can charge fees and have different processing times, so compare the costs first. The ATO also warns taxpayers to watch for scams and to check a provider’s credentials before sharing information or making a payment.
The safest approach is to plan on the basis that direct credit card payments will end after 30 June 2027, and to check the ATO’s website for any further updates.
Who is most affected?
You are most likely to feel this change if you:
Pay your quarterly BAS, PAYG instalments or income tax with a credit card
Use the card to bridge a short-term gap until customers pay you
Have a credit card linked to an ATO payment plan or direct debit
Rely on card rewards or interest-free days to manage cash flow
What to do now
You do not need to change anything today, but a few simple steps now will save stress later.
1. Check your payment plans and direct debits. The ATO advises people with a credit card linked to a payment plan or direct debit to check their arrangement, work out which instalments fall after 30 June 2027 and update the payment method before the next payment is due.
2. List the ATO payments due after 30 June 2027. This includes BAS, PAYG withholding, super and any income tax. Knowing the dates and amounts gives you time to prepare.
3. Set tax money aside as you earn it. The simplest alternative to a credit card is cash that is already put aside. Our guide to why profit doesn’t always mean cash in the bank explains how to do this with a separate savings account.
4. Decide on a backup payment method. Debit card, bank transfer and BPAY remain available. Pick the one that suits your cash flow and set it up before you need it.
5. Talk to the ATO or your accountant early if cash is tight. If you were using a credit card to cover a shortfall, it is better to arrange a payment plan before a payment is due than after you fall behind.
6. Keep an eye on updates. Check the ATO’s page on credit card payment changes before 30 June 2027.
Why this matters for your cash flow
Many small businesses use a credit card as a buffer. It gives a few extra weeks between paying the ATO and paying the card. If that option goes away, the cash needs to be ready on the due date instead.
That is why planning ahead is important. A simple forecast of your cash coming in and going out shows you where the tight months are, well before a BAS is due.
When to ask an accountant for help
If you currently pay the ATO by credit card, or you are not sure how your payment plan is set up, it is worth a short conversation with an accountant. We can help you review your payment arrangements and plan your cash flow for the coming year.
At Gordon QC Du & Associates, we help Perth small businesses stay on top of ATO payments and obligations. If you would like help, get in touch with our team about our Accounting services.
Frequently asked questions
Can I still pay the ATO with a credit card?
Yes. The ATO will keep accepting credit card payments until 30 June 2027.
Has the ATO credit card ban been cancelled?
No. It has been delayed. The proposed ban has not been reversed, and direct ATO credit card acceptance has been extended to 30 June 2027.
Will the change affect debit card payments to the ATO?
No. The proposed ban applies only to credit cards.
Can I still pay my BAS with a credit card after 30 June 2027?
Not directly to the ATO. The ATO says you can use a third-party payment provider, but fees, charges and processing times vary, and you should check that a provider is legitimate before paying.
Disclaimer: This post contains general information only and does not constitute specific tax or financial advice. Please consult a registered tax agent regarding your specific circumstances.
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