Big change alert for Australian taxpayers. From 30 November 2026, you won't be able to pay your taxes using a credit card. This move comes after the Reserve Bank of Australia took a closer look at the costs associated with card payments and surcharging. Interestingly, it's also the same day that the RBA's ban on card surcharges kicks in.
The ATO's explanation is short. In its announcement, it said: "As a government agency, the ATO has decided it would not be appropriate for the cost of credit card merchant fees to be transferred to the community."
Who this affects
The ATO says most taxpayers won't notice. About 2.3 per cent of tax payments were made with credit cards during the 2024 to 2025 financial year, according to the ATO. It also says more than 60 per cent of card payments came from privately owned and wealthy groups, and public and multinational businesses.
The Australian Chamber of Commerce and Industry (ACCI) is concerned about small business. Chief executive Andrew McKellar told reporters in Canberra that small businesses account for about 40 per cent of credit card payments to the ATO. He said some of them use cards to manage cash flow when tax bills fall due, and that many small businesses are not ready for the change.
The ATO acknowledges that some taxpayers rely on credit cards to manage their tax payments and says the change may require some adjustments. It says it will keep supporting people who are in financial hardship or in other circumstances that make it hard to meet their obligations.
Check your payment plan
The ATO is writing directly to people who have a payment plan linked to a credit card. Anyone with a direct debit arrangement linked to a credit card needs to update the payment method before their next instalment due after 30 November 2026, to stay compliant with their payment plan. The steps are on the ATO's website, on its page for managing a payment plan.
Other ways to pay
Other payment methods will remain available, according to the ATO's website, which lists options including BPAY and direct deposit. In the meantime, the website says card payment fees do not apply to payments.
People who need extra support can visit the ATO's website, call 13 11 42 during business hours or speak with their registered tax professional.
This content is for informational purposes only and does not constitute formal tax, legal, or accounting advice.