The switch-off had been planned for 1 December, which would have given many businesses only weeks to rethink how they pay their BAS and tax bills. The Government is covering the card surcharges during the extension, but there’s no promise that cards will still be accepted directly after June next year.
Our tip: use the extra time to plan
If you lean on a card to smooth cash flow at BAS time, now is a good moment to look at the alternatives:
setting up BPAY, direct debit or bank transfer for ATO payments
a separate tax savings account you top up each month
an ATO payment plan or other finance options if cash flow is tight.
It’s been just over three months since Payday Super began on 1 July 2026. For most employers, super guarantee now has to reach each employee’s fund within seven business days of payday. Paying at the end of the quarter no longer cuts it.
The first real test lands on 28 October 2026.
Which ATO risk group are you in?
Under the ATO’s first-year compliance approach, PCG 2026/1, employers are broadly sorted into three groups:
Low risk: you pay with each pay run and fix any late payments promptly.
Medium risk: you’re still paying quarterly or catching up, but every July–September shortfall is cleared within 28 days of quarter end.
High risk: any September-quarter shortfall is still outstanding after 28 October. These employers are first in line for ATO review.
28 October is also the standard due date for the July–September quarterly BAS, so it’s a busy fortnight.
Three things worth doing now
Reconcile July–September payroll against what your clearing house and funds actually received.
Chase any rejected or misallocated contributions.
Check that your payroll software and bank timing can reliably meet the seven-business-day window.
Here’s a simple weekend project: pick one job you hate doing every week, and try handing it to an AI tool.
You don’t need to be technical. Most of today’s AI tools work by simply typing or talking to them.
Practical examples for local businesses
Tradies: describe the job out loud in the ute, and have AI turn it into a written quote to check and send.
Cafés: paste in this week’s specials and get social media posts written in your own style.
Physios and personal trainers: turn rough session notes into a clean summary or home program, with names and personal details removed.
Retailers and service businesses: let your accounting software read supplier invoices and suggest how to code them, so bookkeeping takes minutes instead of hours.
Two rules to follow
Protect personal information. Never put TFNs, bank details or clients’ personal information into a public AI tool.
AI drafts, people check. Use AI for the first draft, and have a person review anything before it goes to a customer, supplier or the ATO.
The businesses that benefit most from AI won’t necessarily be the biggest. They’ll be the ones that use it to free up time for customers and for running the business.
Many business owners are discovering this at tax time: interest the ATO charges on late or unpaid tax is no longer tax deductible.
Since 1 July 2025, the general interest charge (GIC) and shortfall interest charge (SIC) can’t be claimed as a deduction. That applies even if the debt relates to an earlier year. GIC also compounds daily, so the cost grows quickly.
The 2025–26 tax return is the first where most businesses will feel the change. If you’ve been using the ATO as a cheap overdraft, it isn’t cheap anymore.
What you can do
Pay down the ATO debt first if you can. The sooner it’s paid, the less interest accrues.
Keep any payment plan as short as possible. Interest keeps accruing while you’re on a plan, but a plan stops debt recovery action while it’s being managed.
Compare a business loan. Interest on borrowings used in your business can still be deductible, so refinancing the debt may cost less after tax. Get advice first.
Ask about remission. If something genuinely went wrong, you can still ask the ATO to reduce or cancel the interest.
Seasonal cash flow? Plan ahead
Tradies, builders and hospitality businesses on the Northern Beaches often have lumpy cash flow, which is when tax debts tend to build up. Setting aside GST and PAYG in a separate account each week, and planning for quieter months, is the simplest way to avoid paying non-deductible interest.
October is NSW Small Business Month, so it’s a good time to take stock. How are local businesses actually going?
What the numbers say
Northern Beaches Council’s latest annual business survey asked 240 local businesses about their prospects. 27% feel fairly confident, 25% are fairly worried and 24% are neutral. Council also found that local businesses are facing the same pressures as small businesses across NSW, not just issues unique to the Beaches.
Nationally, Xero’s small business data shows that this year’s three interest rate rises and higher fuel prices started to hurt small business sales in May and June, after a strong start to the year.
Three habits of the businesses holding up best
From our desk in Dee Why, the local businesses coping best with tougher conditions have three things in common:
They know their numbers monthly, not just at tax time. A monthly profit and cash flow check means problems show up early, while there’s still time to act.
They raise prices instead of absorbing every cost increase. Small, regular increases are easier for customers to accept than one big jump.
They chase overdue invoices within days, not months. Every week an invoice sits unpaid, your business is funding your customer.
Free local support this month
Northern Beaches Council’s Business Concierge offers free one-on-one sessions with business advisors. If you haven’t used it, Small Business Month is a good time to start.
This article is general information only and isn’t personal advice. Sources: Northern Beaches Council business survey; Xero Small Business Insights, June quarter 2026.
A busy week for Northern Beaches business owners: the ATO is retiring credit card payments, card surcharges are gone, rates have moved again and the first 2026-27 deadlines are weeks away.
ATO to stop accepting credit cards after 30 November
On 1 October the ATO announced it will no longer accept credit card payments for tax debts after 30 November 2026. BPAY, direct debit from a bank account and payment plans remain available. If your payment plan debits a credit card, the ATO will write to you, and you will need to switch method before your first instalment due after 30 November.
Card surcharges are off from 1 October
Under new card network rules, businesses can no longer add a surcharge when customers pay with Visa, Mastercard, American Express or eftpos, according to ACCC guidance updated on 2 October. Card costs now need to be built into your pricing, and displayed prices must be the total the customer pays. A disclosed discount for cash or PayID is still allowed, but relabelling a surcharge as a service fee is likely to be treated as misleading. Check your point of sale settings now.
Cash rate rises to 4.60 per cent
The Reserve Bank lifted the cash rate by 25 basis points to 4.60 per cent on 29 September, citing higher global energy prices. If you carry variable rate debt or equipment finance, refresh your December quarter cash flow forecast.
Key dates: 28 October BAS and 31 October tax returns
The July to September BAS and PAYG instalment are due on 28 October, with an extra two weeks if you lodge through a registered agent. Sole traders and individuals lodging their own 2025-26 return must do so by 31 October. To use a tax agent for the first time, or switch agents, the ATO says you need to be on their client list before 31 October to access later lodgment dates.
Payday Super: check your first quarter
Super on wages paid since 1 July 2026 must reach the employee’s fund within 7 business days of payday, with up to 20 business days for a new employee’s first contribution. Late contributions attract the super guarantee charge, so reconcile what your payroll software has sent against what each fund has received.
Free AI workshops in Warriewood on 27 October
For NSW Small Business Month, Northern Beaches Council is running two free AI Made Simple for Small Business workshops at 2/4 Jacksons Road, Warriewood on Tuesday 27 October: AI for Marketing from 2.30pm and AI Tools for Small Business from 6pm. Places are limited to 45 eligible local businesses. Hundreds more Small Business Month events run statewide through October.
What this means for you
Most of these changes land within eight weeks, so set aside an hour to update your ATO payment method, review pricing and diarise 28 and 31 October. This is general information only. Book a call with our Dee Why team to talk through what applies to your business.
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