You Can Still Pay the ATO by Credit Card, Until 30 June 2027

What changed in October

The ATO set a cut-off and moved it eight days later. On 1 October 2026 it said it would stop accepting credit cards after 30 November 2026. On 9 October, following discussions with the government and the provision of transitional funding, it said it will continue accepting them until 30 June 2027.

The ATO has put a notice on the 1 October release and on its payment pages pointing to the new date. One page has not caught up: the small business newsroom article on credit cards, updated 15 October, carries the 30 June 2027 notice at the top but still says "after 30 November 2026" in its body. The 9 October release is the later statement.

Why the ATO is dropping credit cards

The trigger is the Reserve Bank's review of merchant card payment costs and surcharging. A ban on card surcharges started on 1 October 2026, so the ATO can no longer pass the merchant fee on to the person paying. The Commissioner estimated those fees at almost $200 million a year and rising.

A business in the same position can lift its prices. The ATO cannot, because tax liabilities are set by law. Its view is that absorbing the cost means less revenue collected, and that extra public funding to cover it comes to the same thing. It says it approached the card companies for a lower rate and they declined.

The people affected are a minority, and a particular one. Credit cards made up about 2.3% of ATO collections in 2024-25, and more than 60% of card payments by value came from privately owned and wealthy groups and from public and multinational businesses. Around 5% of small businesses paid their tax by credit card that year, and just over 2% of individual taxpayers.

No card fee until then

The ATO's card terms now read: "Card payment fees do not apply to payments." That is a direct result of the surcharge ban. Until 30 June 2027, paying a tax bill by credit card costs the same as paying by BPAY, as far as the ATO is concerned. Your card issuer's own interest and terms still apply to the balance.

Two practical rules carry over. A refund of an incorrect payment or an overpayment made by card can only go back to the same card. And whichever way you pay, the payment needs the right payment reference number (PRN) for the account, or it can land on the wrong one and trigger debt collection on the account it missed.

Payment plans on a credit card

When the cut-off was 30 November, the ATO said it would write to everyone with a payment plan linked to a credit card, and that instalments after that date would fail, which could put the plan into arrears or default. That warning was written for the old date.

The 9 October release covers credit card payments for tax obligations generally, so a card-linked plan should keep working until 30 June 2027. If you already received a letter telling you to switch by 30 November, the safest course is to switch anyway, or confirm with the ATO on 13 11 42, rather than find out from a failed instalment. Plans can be changed in online services.

The 23 November 2026 tax bill

If you lodged your own 2025-26 return by the deadline and it came back with a bill, the ATO sets payment for 21 November 2026. That is a Saturday, so the bill can be paid on Monday 23 November 2026 without interest, as set out in every ATO date from October to December 2026. A credit card still works for it, with no card fee.

Paying late is the expensive option. Anything unpaid after the due date attracts the general interest charge at 11.51% a year for October to December, compounding daily and no longer deductible; the figures are in the GIC rate rise from 1 October. If the bill is a surprise, the cause is usually withholding during the year; the tax refund calculator shows where a return should land before you lodge.

Voluntary HECS-HELP repayments are tax payments for this purpose too. The ways to make one, and the 1 June timing, are covered in paying off HECS early.

How to pay the ATO after 30 June 2027

Every other method stays. These are the ATO's listed options, and the quarterly dates they apply to are in when PAYG is due and how to pay:

Electronic and Australia Post payments can take time to be received and applied, so pay a few business days before the due date. If you want to keep using a credit card after 30 June 2027, the ATO points to third-party payment providers. It asks taxpayers to weigh their fees, charges and processing times, and to check a provider's credentials before handing over details. It also warns taxpayers to stay alert to scams.

If the real problem is cash flow rather than the card, the ATO says to contact it or a registered tax professional early. It offers payment plans where suitable and has hardship assistance for people in serious financial difficulty. For an instalment that has already slipped, what happens if you do not pay PAYG instalments covers the interest and the plan options.

Frequently asked questions

Sources

ATO pages fetched 15 October 2026.

• ATO extends transition period for taxpayers using credit cards until 30 June 2027 (QC108165, published 9 October 2026). The new end date, the transitional funding, and the third-party provider warning.
• ATO to stop accepting credit cards after 30 November 2026 (QC108119, last updated 1 October 2026). The original announcement, the RBA review link, the 2.3% figure and the payment plan letters.
• Commissioner statement: credit cards (QC108152, published 2 October 2026). The surcharge ban start date, the $200 million merchant fee estimate, who pays by card, and the remaining payment options.
• Other payment details (QC50297, last updated 9 October 2026). Card payment fees do not apply; refunds go back to the same card.
• Other payment options (last updated 9 October 2026). EFT bank details, Government EasyPay, direct debit set-up times and Australia Post.
• Changes to credit card payments, small business newsroom (QC108120, last updated 15 October 2026). The payment plan warning written for the 30 November date, now carrying a 30 June 2027 notice above it.

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