Sunita Somvanshi
The Australian Taxation Office’s planned ban on credit card tax payments has been temporarily delayed until 30 June 2027 after the federal government confirmed it will fund card processing costs during a transitional period. The move follows backlash from business operators and self-employed taxpayers.
This is a follow-up to the broader card surcharge reform that took effect on 1 October 2026, when the Reserve Bank of Australia’s updated payment regulations changed how card surcharging works for merchants. The ATO situation is a separate, specific development: the tax office had announced it would stop accepting credit card payments for ATO bills from a planned implementation date. After ABC reported on 9 October that the government would step in with temporary funding, the arrangement allows credit card payments to continue at the ATO through 30 June 2027.
What Changed and Who It Affects
Under the previous plan, taxpayers paying ATO bills with a credit card — particularly business owners settling quarterly BAS or annual tax liabilities — would have lost card payment as an option. The temporary government funding arrangement means the ATO will continue accepting credit card payments until 30 June 2027. The ATO has stated it cannot absorb processing costs on an ongoing basis, so the long-term payment arrangements beyond that date remain unresolved.
For small business operators, the practical effect for now is straightforward: you can continue paying ATO liabilities by credit card through June 2027. Verify current accepted payment options on the ATO’s payment page directly — check the ATO payment page for the latest status as implementation details are confirmed.
The card surcharge reform that took effect 1 October 2026 — under which covered card surcharges are now banned for private businesses — applies to private-sector merchants. The ATO’s separate temporary government funding arrangement runs alongside that reform until 30 June 2027 under the RBA payment regulation framework. The government is funding the ATO’s transitional period; Australian businesses remain subject to the new surcharge ban under the commercial rules.
Before relying on any specific credit card payment method, verify the current accepted payment options on the ATO’s payment page directly — implementation timelines for policy changes at the tax office can move faster than media coverage tracks.
Can I pay the ATO by credit card without a fee?
The government’s temporary funding arrangement means the ATO will continue accepting credit card payments until 30 June 2027 without a surcharge to taxpayers. This is a temporary arrangement, not a permanent reversal of the planned ban. Verify the current payment options at ato.gov.au before making a payment, as operational implementation dates may differ from policy announcements.
Check the ATO payment page directly for current payment options and any updates on arrangements beyond June 2027. That confirmation is the follow-up trigger for this story.
