The Key Change

The Australian Taxation Office has announced it will stop accepting credit cards as a payment method after 30 November 2026. The decision follows the Reserve Bank of Australia's Review of Merchant Card Payment Costs and Surcharging.

The ATO's reasoning is simple: as a government agency, it doesn't think it's appropriate to pass the cost of credit card merchant fees on to the community. From 1 December, tax debts will need to be paid another way.

Who This Affects

Most taxpayers won't notice. Only about 2.3% of tax payments were made by credit card in 2024–25, and more than 60% of those card payments came from privately owned and wealthy groups, and public and multinational businesses.

The people who will feel it most are those who have been using a credit card to smooth out cash flow, earn rewards points on large tax bills, or fund a payment plan.

Payment Plans Linked To A Credit Card

If you have a payment plan with the ATO that's funded by a credit card, this is where you need to act. The ATO is writing directly to everyone in this position to explain the change and what to do next.

Anyone with a direct debit arrangement drawn from a credit card must switch to a different payment method before their first instalment due after 30 November 2026. Miss it, and you risk falling out of step with your plan. You can update the payment method through the ATO's guidance at ato.gov.au/managepaymentplan.

Your Alternatives

The ATO lists every accepted payment method at ato.gov.au/howtopay. Before 1 December, it's worth checking:

• Which method suits how often you pay, whether that's a one-off BAS or income tax bill, or regular instalments.
• That your bank details are set up and verified well ahead of your next due date.
• Whether your cash flow still works without the 30–55 day buffer a credit card gave you.

If You're Finding It Hard To Pay

The ATO acknowledges some taxpayers rely on credit cards to manage their obligations and says it will keep supporting those in financial hardship or other difficult circumstances. Help is available at ato.gov.au/supporttolodgeandpay, by calling the ATO on 13 11 42 during business hours, or through your registered tax agent.

That's where we come in. Royce Standard can review your upcoming tax liabilities, restructure a payment plan around your real cash flow, and connect you with finance options through our affiliate network if you need a bridge.

Key Facts at a Glance