Anyone who has run a small business knows that managing cash flow is a constant balancing act. On any given week, you might be waiting on customer invoices to clear while payroll, supplier accounts, and superannuation commitments all line up at the same time. When a quarterly Business Activity Statement (BAU) lands on top of that, even healthy businesses feel the squeeze.
When the federal government stepped in to delay the ATO’s planned direct credit card ban until 30 June 2027, the extra time was certainly welcomed. But the incident highlighted a reality many owners live with every day. Cash-flow pressure is an ongoing part of running a business, and finding practical ways to protect liquidity and make the most of everyday spending shouldn’t depend on regulatory deadlines.
The panic behind the pushback
The strong response to the proposed changes showed just how important payment flexibility has become for Australian business owners. When news broke that direct card options might disappear, thousands of businesses moved quickly to ensure they kept that flexibility in place.
In the first week of October alone - just following the ATO’s announcement that it would ban credit cards - we had 2,973 new businesses join our platform, which was 3.8 times the volume of the previous week and 4.9 times the same week last year. We also saw the two highest sign-up days in company history in the days following the news.
Looking across our platform over the 12 months prior to 30 September, businesses settled over $3 billion in ATO obligations through pay.com.au, with 65% of that paid by credit card. Around 24,500 businesses have used our platform for tax payments, 80% of which pay by credit card
These numbers tell me that business owners value having choice in how they manage their payments.
The timing gap every small business faces
The reason behind that card volume is that cash flow rarely moves on a tidy schedule. While weekly payroll, supplier invoices, and quarterly tax deadlines are completely non-negotiable, incoming payments from clients and customers often lag weeks or months behind. That mismatch creates an ongoing working-capital gap that even profitable, growing businesses have to manage carefully.
Handing over large sums of liquid cash the moment a tax bill arrives can drain reserves needed for immediate operational expenses. For thousands of business owners, utilising commercial card terms is simply a practical bridge between when obligations are due and when customer revenue actually hits the bank. It keeps working capital intact without forcing businesses into expensive borrowing.
Practical ways to smooth out cash flow
Recognising that cash flow is an active management challenge allows small business owners to look at their balance sheet differently. Beyond using card cycles as a working-capital buffer, there are other practical steps businesses can take to optimise their regular outgoings.
One powerful move is turning mandatory overheads into tangible value. Significant business costs like BAS liabilities, superannuation, and trade supplier invoices are fixed commitments that normally generate zero return. By routing these payments through dedicated third-party platforms like pay.com.au on a commercial credit card, businesses earn full frequent flyer or reward points on money they are already spending. Over a financial year, those points become a genuine commercial asset that directly offsets expenses like business travel, accommodation, or team incentives.
Simplifying payment administration is another immediate win. Logging into separate portals for the tax office, super clearing houses, and disparate suppliers wastes valuable leadership hours and obscures forward cash visibility. Bringing those distinct payments into a single, automated workflow gives finance teams total clarity over weekly outflows, making forecasting reliable rather than reactive.
Looking ahead to 2027
Under current policy arrangements, the ATO will continue accepting direct credit card payments until 30 June 2027. After that, direct acceptance phases out, while authorised third-party platforms like pay.com.au will continue supporting credit card-funded tax payments.
Waiting until mid-2027 to rethink how cash moves through your business would be a missed opportunity. If the recent outcry proved anything, it’s that payment flexibility is not an administrative afterthought, but fundamental to how small businesses survive and grow.
Policies may shift, but business owners still have to balance the books every Friday. You don’t need the tax office to propose another rule change to start making your cash reserves work smarter.