If your business relies on a credit card to pay its tax bill, 30 June 2027 is a date to plan around—not a deadline to leave until the last minute.

The ATO originally planned to stop accepting direct credit card payments after 30 November 2026. On 9 October 2026, the Australian Government extended the arrangement, giving businesses until 30 June 2027 before the planned change takes effect.

Credit card payments to the ATO are expected to remain available through third-party providers after that date. However, the payment process, fees and terms may differ from paying the ATO directly.

For Australian small and medium-sized businesses (SMEs), the practical question is simple: how will you pay your next tax bill, and what will that method cost your business?

Here is what has changed, what you need to check and how to prepare.

Can You Still Pay the ATO by Credit Card?

Yes. Following the Government’s 9 October 2026 announcement, the ATO is expected to continue accepting direct credit card payments until 30 June 2027.

The original deadline was 30 November 2026. The extension gives businesses more time to review their payment arrangements and prepare for alternatives.

After 30 June 2027, the Government has confirmed that the ATO will continue accepting credit card payments through third-party providers, alongside other payment methods such as debit card and bank transfer.

This means credit card payments are not disappearing altogether. The change is to the way you can make those payments directly to the ATO.

For the original announcement and current payment guidance, check the ATO’s credit card payment update.

What Is the New ATO Credit Card Payment Deadline?

The key dates are:

• 1 October 2026: The ATO announced its original plan to stop accepting direct credit card payments after 30 November 2026.
• 9 October 2026: The Government announced an extension of direct ATO credit card acceptance.
• 30 June 2027: The extended end date for direct credit card acceptance under the current announcement.
• From 1 July 2027: Businesses wanting to pay by credit card should expect to use a third-party provider, subject to the provider’s services and terms.

Do not confuse the extended deadline with a permanent reversal of the change. Review the ATO’s latest instructions before making a payment, particularly as the transition date approaches.

Why Is the ATO Changing Credit Card Payments?

The change is linked to Australia’s credit card surcharge reforms, which took effect on 1 October 2026 for covered card payments.

A surcharge is an additional amount charged because a customer pays using a particular card. Under the new rules, businesses can no longer impose surcharges on covered credit and debit card transactions.

The ATO also accepts card payments, but its payment arrangements are different from those of an ordinary retailer. The Government said the ATO explored options with card companies to reduce fees, but the offers were not sufficiently low to make continued direct acceptance viable under the new arrangements.

The Government has therefore provided transitional funding to extend direct credit card acceptance while the ATO consults on longer-term arrangements.

The surcharge reforms and the ATO payment change are related, but they are not the same policy. The surcharge reforms do not mean that every organisation must stop accepting credit cards.

For details of the surcharge reforms, see the Reserve Bank of Australia’s guidance.

What Does It Cost to Pay the ATO by Credit Card?

The cost depends on how you pay, the provider you use and the terms of your credit card. Businesses should compare the full cost of a transaction rather than assume every credit card payment carries the same fee.

ATO Card Payment Fees and Third-Party Service Fees

A third-party payment provider may charge a service or processing fee for facilitating a credit card payment to the ATO. The fee can vary by provider, card type and transaction.

Before choosing a provider, check:

• The fee charged for your specific transaction.
• Whether different card types attract different fees.
• Any transaction limits or additional charges.
• How long the payment takes to reach the ATO.
• How payment confirmation and references are provided.
• What happens if a payment is declined or delayed.

Do not rely solely on an advertised headline rate. Review the total amount payable before authorising the transaction.

How Credit Card Interest Can Increase the Total Cost

A payment fee is only part of the potential cost. If you carry the card balance beyond the applicable interest-free period, interest may apply under your card agreement.

For example, if your business pays a $10,000 tax bill through a provider charging a hypothetical 1.5% service fee, the fee would be $150. The immediate outlay would be $10,150, before any applicable interest or other charges.

This is an illustration, not a quoted provider rate.

If you are considering paying by credit card, check whether the transaction qualifies for an interest-free period under your card terms. Do not assume it will.

A fee that looks manageable can become expensive if the balance remains unpaid. Compare the total cost with bank transfer, debit card and any other suitable payment options before deciding.

Is It Worth Paying the ATO by Credit Card?

Paying by credit card may help with payment timing, but it does not reduce your tax liability. Whether it is worthwhile depends on your cash position, the payment fee and your ability to repay the card balance.

When Credit Card Payments May Help Cash Flow

A credit card can create a short gap between making a payment and repaying the card. That timing may be useful if a customer payment is due shortly after your tax bill.

For example, your business might have a BAS payment due before a large customer invoice is expected to be paid. A credit card could help bridge that timing gap if you have sufficient available credit and can repay the balance as planned.

Before relying on this approach, confirm that:

• The available credit covers the tax bill and payment fee.
• Expected cash receipts will arrive in time to repay the card.
• The cost is reasonable compared with other available methods.
• The payment will not leave you short of funds for wages, suppliers or other commitments.

When Fees and Interest Can Outweigh the Benefits

Credit card payments become less attractive when your business cannot repay the balance promptly or when the fees outweigh the benefit of the extra time.

If you are already carrying a large card balance, borrowing to pay another liability may increase financial pressure rather than solve it.

A credit card may be suitable for managing a short-term timing gap. It is less suitable as a recurring solution to a business that cannot afford its tax obligations.

If you expect to struggle with a tax payment, contact the ATO promptly to discuss the options available for your circumstances rather than assuming another credit facility is the best answer.

What Payment Options Can Australian Businesses Use Instead?

The Government has identified bank transfer and debit card payments among the alternatives that will remain available. Businesses wanting to continue paying by credit card after 30 June 2027 are expected to use third-party providers.

The right option depends on the funds available, the payment deadline and the cost of each method.

Bank Transfer and Debit Card Payments

If your business has enough cash available, bank transfer may be a straightforward alternative. Debit card payments can also be useful because they draw on available funds rather than a credit limit.

Before changing payment methods, confirm the applicable fee, processing time, payment instructions and reference details. Allow enough time for the payment to be processed and recognised by the ATO.

Do not assume that initiating a transfer on the due date means the payment will be received or processed that day.

Can You Still Pay BAS With a Credit Card Through a Third Party?

The Government has confirmed that third-party providers will continue to facilitate credit card payments to the ATO after 30 June 2027.

For businesses that regularly pay BAS or other tax liabilities by card, this means the option is expected to remain available, but the process and costs may differ from direct ATO payments.

Before using a provider, check that it supports the specific payment you need to make. Compare its service fee, transaction limits, processing time and payment confirmation process.

Also consider any interest charged by your card issuer. A convenient payment method is not necessarily the least expensive one.

How Should Your Business Prepare for the June 2027 Transition?

You do not need to change every payment arrangement immediately. You do need to know where your business relies on direct credit card payments and what will replace them if necessary.

Review Your BAS, PAYG and Income Tax Payment Methods

Start by reviewing the ATO payments your business has made over the past 12 months.

Identify which payments were made by credit card, how frequently you use the method and what fees you paid. Include BAS, GST, PAYG and income tax payments where applicable.

Record the amount, due date, payment method and source of funds used to repay the card.

This will show whether credit card payments are occasional conveniences or a regular part of your cash-flow process.

Check Existing Payment Plans and Scheduled Payments

Review saved payment instructions, scheduled transactions and recurring arrangements involving credit cards.

Identify which arrangements may need to change and confirm the available alternatives. If you use a third-party provider, check its terms and whether it expects to continue supporting your type of payment after June 2027.

Make sure the person responsible for tax payments understands any changes and knows how to confirm that payments have been processed.

Compare Payment Costs Before Choosing an Alternative

Compare the actual cost of each suitable method for your business.

Payment method	What to check
Bank transfer	Fees, processing time and payment reference requirements
Debit card	Applicable fees and transaction limits
Third-party credit card payment	Provider fee, card eligibility and processing time
Credit card repayment	Interest rate and repayment terms if the balance is carried

Use the current terms for the payment method you intend to use. Provider fees and processing arrangements can change, so verify them before relying on a service.

Update Your Tax Payment and Cash Flow Forecast

A tax liability should be part of your cash-flow forecast before the due date, not an unexpected expense when the BAS is ready to lodge.

For each expected payment, record:

• The estimated liability and due date.
• The funds currently available.
• Expected customer receipts before the due date.
• Other committed expenses, including wages and supplier payments.
• Any shortfall that needs to be addressed.

If the forecast shows a gap, identify it early. That gives you time to review payment options rather than relying on a last-minute credit card transaction.

A useful starting point is to set aside funds for expected tax liabilities as income is received, where your cash position allows. Regular reconciliations also help you identify liabilities before they become urgent.

For a broader view of how consistent accounting processes support reliable financial information, see our Month-End Accounting Checklist for Australian SMEs.

What If Your Business Cannot Pay Its ATO Bill on Time?

If your business cannot meet a tax payment by the due date, switching to a credit card may not be the right solution.

First, establish the amount due, the deadline and the size of the cash shortfall. Review expected receipts, committed expenses and available funds to determine whether the issue is a temporary timing gap or a more serious cash-flow problem.

Contact the ATO promptly to discuss the options available for your circumstances. Do not assume a payment arrangement will automatically be approved or that contacting the ATO removes your existing obligations.

The Government has also asked the ATO to consult on support for taxpayers experiencing financial hardship and alternative arrangements for those unable to pay through other methods. This should not be treated as a guarantee of a particular outcome for an individual business.

If tax payments repeatedly create a cash shortfall, review the underlying causes. These may include inaccurate cash-flow forecasts, insufficient provision for GST or PAYG liabilities, late customer payments or spending commitments that leave too little cash available when tax falls due.

A different payment method may help with timing, but it cannot fix a recurring gap between income and expenses.

ATO Credit Card Payment Changes: Business Checklist

Use this checklist to prepare before the transition date.

• Identify every ATO payment currently made by credit card.
• Record payment amounts, due dates and applicable fees.
• Check the latest ATO guidance on direct credit card acceptance.
• Review saved payment instructions and scheduled transactions.
• Compare bank transfer, debit card and third-party credit card options.
• Verify provider fees, processing times and payment confirmation requirements.
• Update your tax payment calendar and cash-flow forecast.
• Assign responsibility for checking payment status and retaining records.
• Contact the ATO early if you expect difficulty meeting a tax liability.

Prepare Your Business Before the Deadline

The extension to 30 June 2027 gives Australian businesses more time to prepare, but the important decision is not simply which card or payment method to use. It is how to meet tax obligations without creating unnecessary pressure on working capital.

Start by reviewing your payment history, comparing the true cost of available methods and forecasting upcoming tax liabilities. If your business regularly discovers a cash shortfall only when a payment is due, improve the forecasting and accounting process rather than relying on short-term credit to cover the gap.

Accounting Gurus supports Australian businesses with outsourced bookkeeping and finance functions, including reconciliations, reporting and cash-flow support. If your internal team struggles to keep financial records current or forecast upcoming obligations, explore our Outsourced Finance Department Services to see whether additional accounting capacity fits your needs.

Know what you owe, know when it is due, and plan how you will pay before the deadline arrives.