ATO Credit Card Payments: Extended to 30 June 2027

Yes, you can still pay the ATO directly by credit card, and for longer than first announced. On 9 October 2026 the ATO extended direct credit card acceptance from 30 November 2026 to 30 June 2027, and it no longer charges a card payment fee. From 1 July 2027 you'll need a bank-funded method, a debit card or a third-party provider that charges its own fee.

This is general information, not financial advice, and it doesn't consider your circumstances. Check your card's terms and your ATO account, and ask a registered tax agent about your own payments.

What changed on 9 October 2026, and why?

The ATO announced on 1 October 2026 that it would stop accepting credit cards after 30 November 2026. Eight days later it pushed that back to 30 June 2027. Its media release says the change follows discussions with the government and the provision of transitional funding.

The matching Treasury release from the Treasurer, the Small Business Minister and the Assistant Treasurer fills in the detail:

• Funding: the government will pay for the ATO to keep accepting cards until the end of the financial year. The cost will be finalised in MYEFO, the mid-year budget update.
• Reason: small businesses said the original timeframe was too short.
• Card company talks: the ATO asked card companies for lower fees, and they did not offer fees low enough. The ATO will keep talking to them.
• Who it affects: just over 2% of individuals and around 5% of small businesses paid tax by credit card in 2024–25.
• Consultation: the ATO has been asked to consult on support for people in financial hardship and on alternatives for businesses and individuals who can't pay another way.

The extension doesn't change how much tax you owe or when it's due. Use the due date on your account or activity statement.

Why the ATO no longer charges a card fee

Card networks introduced no-surcharge rules from 1 October 2026 under the RBA's surcharging reforms. The ATO's easy-read guidance says it is charged a fee when you pay by card, that it used to ask you to pay that fee, and that a new rule starting on 1 October 2026 means it can't. Its card terms now state that card payment fees do not apply.

That rule is the reason for the cut-off. The ATO would otherwise absorb the merchant fees, and the original release said it would not be appropriate for that cost to be passed to the community. The transitional funding covers the gap until 30 June 2027.

Two practical effects follow. Until the cut-off, a direct card payment to the ATO costs you nothing extra. And third-party providers are not covered by the ATO's rule: they charge their own processing fees, and the RBA's explanation separates surcharges from the fees a provider charges for its own service.

What still applies until 30 June 2027

Direct card payments work as before, without the fee:

• ATO online services or myGov. Pay by card from the accounts and payments area of Online services for business or ATO online services for individuals and sole traders.
• Government EasyPay. Pay online or by phone on 1300 898 089 with Visa, Mastercard or American Express. You need your payment reference number (PRN), card details and the billing contact details your bank holds.
• Direct debit from a card. Set up through online services or by phoning 13 11 42. The ATO notes that credit card debits end after 30 June 2027.

The ATO says payments can take up to 4 business days to reach your account, so pay early whichever method you use. Your card issuer decides whether a tax payment earns points and whether it counts towards a bonus-points spend. Many cards earn less on government payments; our business credit cards guide shows how earn rates on ATO payments vary.

Which BAS and tax payments fall before and after the cut-off?

Use the date you will actually pay, not the period the BAS covers. If you lodge online yourself or through a registered agent, your due date is later than the standard date, and that can move a payment past 30 June 2027.

*28 February 2027 is a Sunday, so the October–December BAS is due Monday 1 March 2027. Dates checked 18 October 2026 against the ATO's BAS due dates; our BAS due dates guide lists every date.

Quarterly PAYG instalments follow the same standard dates, so the April–June 2027 instalment is also the first affected. Income tax for the 2026–27 year is assessed after 30 June 2027, so none of it can be paid directly by credit card. For 2025–26 income tax, check the due date on your notice of assessment.

Paying early is allowed. The ATO says you can make early payments towards a future BAS liability using any available payment method. A business that wants its June-quarter BAS on a card could pay an estimate by 30 June 2027 and settle any difference by bank payment later. Your card repayment then falls due earlier, and the money sits in your ATO account until the BAS is processed. Talk to your tax agent before relying on this.

Payment plans linked to a credit card

The ATO's payment-plan guidance, updated on 9 October 2026, says you must change to another method before your next scheduled instalment due after 30 June 2027. Card payments after that date will be unsuccessful, and the plan may move into arrears or default.

• Switch to a debit card or a different card: update the plan in online services. Changes need to be made at least 1 business day before the instalment if you pay by debit card.
• Switch from a card to a bank account: the ATO says you need to cancel the existing plan and set up a new one with the bank account. Bank account debits need changes at least 3 business days before the instalment.
• Change one instalment only: online services lets you pay a particular instalment with a different method.

Opening an account with a payment platform does not update your plan. If you can't make that change in online services, phone the ATO on 13 11 42.

Paying the ATO by credit card after 30 June 2027

The ATO says taxpayers who want to keep using a credit card after 30 June 2027 may use third-party payment providers, and it asks you to weigh their fees, charges and processing times. Treasury adds that debit card and bank transfer remain available as free or low-fee methods.

A third-party provider takes your card payment and then pays the ATO by BPAY (biller code 75556) or bank transfer against your PRN. Two Australian services that say they will keep doing this are:

Sources: Pay.com.au pricing and Sniip pricing. Both providers charge lower Amex rates on larger single payments and sell optional extra points for a further fee. Pay.com.au has updated its ATO page for the 30 June 2027 date. Sniip's announcement was written for the earlier date and had not been updated when we checked.

Our Pay.com.au guide, Sniip guide and side-by-side comparison cover plans, rewards and timing. This table lists services that publicly describe an ATO card route. It is not a recommendation, and other providers may exist.

Check before you share details. The ATO warns taxpayers to watch for scams and to verify a provider's credentials before sharing information or paying. Find the provider yourself rather than through a link in an unexpected text or email, confirm its ABN on ABN Lookup, and check that the payment goes to biller code 75556 with your own PRN from your ATO account.

What a $10,000 tax bill costs each way

This illustrative example uses the published rates above for a single $10,000 payment. It excludes subscriptions, optional rewards fees, card interest and any tax treatment of the fee.

Your bank may charge for its own services, so check its fee schedule. Until the cut-off, an intermediary only makes sense if its extra points or workflow are worth more to you than its fee. After 1 July 2027, the comparison becomes the provider fee against the value of paying later and any rewards you will actually use.

Value rewards at what you would otherwise pay in cash. A flight you would never buy at its advertised price is not a saving of that amount. Keep card points and platform points on separate lines, because they have different earn rates, caps and costs.

Choose a method around the problem you need to solve

A card changes when the money leaves your bank account. It doesn't create the income to repay it. If the forecast only balances because you expect another borrowing facility to be available later, test that assumption before committing.

Put both payment dates into the cash forecast

There are two deadlines to manage: when the ATO needs the funds, and when the card must be repaid. Enter both in a 13-week cash-flow forecast, along with any fees, wages, supplier payments and new tax provisions.

The interest-free days advertised for a card are usually a maximum. Your transaction date and statement cycle set the actual gap, so take the repayment date from your card account rather than adding the headline number of days to the tax deadline.

Then move your largest expected customer receipt back a week. Can the business still make the repayment? If not, work out the extra funding cost and what you would do. Also review your tax reserve against estimated liabilities. Regularly using credit for tax can point to a timing issue, a reserve that is too small or a wider cash shortfall, and each needs a different fix.

Allow time for the payment to reach the ATO

A successful card charge confirms only one stage of an intermediary payment. Check the provider's verification and processing steps, then allow for the ATO to receive and allocate the payment. The ATO says BPAY payments can take up to 4 business days to appear on your account.

Paying a platform on the due date doesn't mean the ATO receives it that day. Weekends, public holidays, account verification or a payment review can push it out. Copy the PRN from the relevant ATO account or notice, save the platform receipt and check the ATO account afterwards. If the payment stays unmatched, use our ATO reconciliation guide to organise the amount, dates and references before you ask for help.

A checklist for the move away from direct card payments

1. List every ATO payment to 30 June 2027 and beyond. Record the taxpayer, account, amount, due date and current method. Include payment plan instalments and PAYG instalments.
2. Mark which side of the cut-off each falls. Use your actual due date, including online or agent concessions.
3. Update card-linked payment plans. Make the change in online services well before the first instalment due after 30 June 2027.
4. Pick a method for July 2027 onwards. Compare fee-free bank payment with any provider using the same bill, card and rewards assumptions.
5. Complete any provider setup early. Allow for identity checks, business verification and a first test payment on a small bill.
6. Set an action date before each due date. Use the ATO's 4-business-day guidance and the provider's own processing times.
7. Confirm receipt. Check the correct ATO account and keep evidence of both stages of an intermediary payment.
8. Reconcile the card repayment. Avoid recording the same outflow twice; our credit card bookkeeping guide explains how.

Timeline

Treat tax deductions as a separate question

Don't reduce a provider's fee by an assumed tax deduction without checking it. The taxpayer, the liability and the purpose of the expense all matter, and personal tax, business expenses and mixed-use arrangements can give different results. Keep the receipt and ask your accountant about the fee, any GST and how rewards are treated.

There is also a rule for ATO debt interest. The ATO says general interest charge and shortfall interest charge incurred on or after 1 July 2025 are no longer deductible. An ATO payment plan still carries interest, so confirm the current terms rather than treating a plan as free finance.

Key takeaways

• The ATO accepts credit cards directly until 30 June 2027, extended from 30 November 2026, and it no longer charges a card payment fee.
• The April–June 2027 quarterly BAS, due 28 July 2027 or later, is the first quarterly BAS you can't pay directly by credit card on its due date.
• Change any payment plan linked to a credit card before the first instalment due after 30 June 2027, or that instalment will fail.
• After 30 June 2027, card payments go through third-party providers that charge fees; debit card, BPAY, bank transfer and direct debit remain.
• Until the cut-off, paying through Pay.com.au or Sniip costs a fee the direct route doesn't, so the case rests on rewards or workflow.

Where to get help

For difficulty paying, the ATO directs taxpayers to its lodgement and payment support, 13 11 42 during business hours, or a registered tax professional. Our payment-plan preparation guide helps you gather the account details and forecast for that discussion. The ATO's scams and identity protection guidance explains how to check a contact is genuine.

For an intermediary payment, ask the provider about processing and your card issuer about rewards or interest, and keep those answers with the transaction records. The ATO and business bill payments hub links our related guides.