Sunita Somvanshi
ATO Extends Credit-Card Tax Payments to June 2027: What Small Businesses Need to Know
For a small business owner facing a tax bill and a thin cash balance, a credit card can bridge the gap between sending invoices and getting paid. That option is now staying for longer than expected.
Treasury ministers have confirmed the government will fund the Australian Taxation Office (ATO) to keep accepting credit card payments until 30 June 2027. The ATO had been working towards ending direct credit-card acceptance, and this extension pushes that date back.
For businesses, nothing changes in the short term. Until the cut-off, you can keep paying the ATO by credit card as you do now. That gives owners another financial year to plan, especially those who use a card to manage small business cash flow around tax deadlines.
After 30 June 2027, card payments will go through third-party providers rather than directly with the ATO. Debit card payments and bank transfers remain available. Third-party services usually set their own fees, so check the cost before you rely on one for a large payment.
The key point is easy to miss. This is a transition extension, not a cancellation of the policy. The government has not abandoned the move away from the ATO absorbing credit-card costs. It has given affected businesses more time to adjust.
The numbers explain the caution. About 5% of small businesses used a credit card to pay the ATO in 2024-25. That is a small share overall, but it is a group that may depend heavily on card terms, rewards or interest-free periods to get through tight months. A sudden change would have landed hardest on them.
Consultation is part of the process. Treasury has been gathering views on how the transition should work, and the results will shape what support, if any, sits around the new arrangement. Small business groups are likely to push for clear guidance and for third-party fees that stay reasonable.
Your questions answered
Can I still pay the ATO by credit card? Yes. The ATO will accept credit cards until 30 June 2027, so current payment habits can continue for now.
What happens after that date? Credit-card payments will have to go through a third party. If you would rather avoid extra fees, debit card and bank transfer are the alternatives. Businesses struggling to pay on time can also look at ATO payment plans before turning to credit.
Why was the change delayed? The extension gives small businesses time to move to other payment methods. It also reflects the cost of card acceptance, which the government has now agreed to fund for the extra period.
Two things are still to come. The outcome of the consultation will show how the post-2027 arrangement is designed. The funding for the extension should appear in the government’s Mid-Year Economic and Fiscal Outlook (MYEFO), which is the next budget update to check. We will update this article when either is published, so it is worth returning to before you plan your 2027 tax payments.
For more on how tax and payment rules affect Australian firms, see our business policy coverage.
