From 1 December 2026, you will no longer be able to pay your tax bill with a credit card. The ATO has confirmed it will stop accepting Visa, Mastercard and American Express credit cards after 30 November, following the Reserve Bank’s ban on card surcharges.
Why this matters for small business
For many small businesses, putting a BAS or income tax bill on the credit card has been a practical way to manage cash flow – buying up to 55 days of breathing space when a large tax payment lands at the same time as wages, rent and supplier bills. Small businesses make up a significant share of credit card payments to the ATO, so this change will be felt locally.
If you currently have an ATO payment plan or direct debit linked to a credit card, you’ll need to change your payment method before your first instalment due after 30 November. Missing this could put your payment plan at risk.
What you can do now
- Keep using your card – the smart way. Until 30 November, you can still pay the ATO directly by credit card. From 1 December, our partner pay.com.au lets you keep paying your tax on card: you pay pay.com.au by card, and they pay the ATO by bank transfer. You keep your card’s interest-free period and your points. Fees apply.
- Update payment plans linked to a credit card before December.
- Plan for your next BAS. Setting aside GST and PAYG in a separate account each week takes the pressure off when the bill arrives.
- Review your PAYG instalments if your income has dropped – you may be paying more than you need to.
- Talk to us before the due date, not after. Remember, ATO interest charges are no longer tax deductible, so carrying a tax debt is now more expensive than it used to be.
We can help
At TaxAssist Accountants Dee Why, we work with Northern Beaches businesses every day on cash flow and tax payments. Through our partnership with pay.com.au, we can set you up to keep paying your BAS, PAYG and income tax on your credit card after the ATO cut-off – so your cash flow doesn’t take a hit.
We can also help you set up an ATO payment plan, prepare a cash flow forecast so tax bills don’t catch you short, and review your PAYG instalments.
Don’t wait until your next BAS is due. Call us on (02) 9045 1511 or email [email protected] to book a chat.
TaxAssist Accountants Dee Why may receive a fee for referrals to pay.com.au. This article is general information only and does not take into account your personal circumstances.
