• The ATO stops accepting credit card payments after 30 November 2026
  • If you have a payment plan linked to a credit card, you will need to update it before your next instalment
  • You have several alternative payment options, including a way to keep using your credit card

If you currently pay the Australian Taxation Office (ATO) with a credit card, you have a deadline coming up. From 1 December 2026, the ATO will no longer accept credit card payments for tax obligations. That means if you rely on a credit card to pay your tax, business activity statement, or payment plan instalments, you will need to switch to another method before the cutoff. Here is what the change means for your business and the steps you can take to stay on top of it.

What is changing and why

The ATO has confirmed it will stop accepting credit cards as a payment method after 30 November 2026. The decision follows a Reserve Bank of Australia review into merchant card payment costs and surcharging. As a government agency, the ATO decided it would not pass credit card merchant fees on to the community.

The change applies to every credit card payment you make to the ATO, including one-off tax payments and instalments linked to a payment plan. The good news is that the vast majority of taxpayers do not pay tax with a credit card. According to the ATO, credit cards accounted for only about 2.3% of tax payments in 2024–25, and more than 60% of those came from larger businesses and wealthy groups rather than small businesses.

Check what you currently pay by card

Start by finding out whether this change affects you. Log in to the ATO online services or your business portal and check your current payment methods. Look for any direct debit arrangements or payment plans linked to a credit card.

If you have a payment plan and your instalments come off a credit card automatically, you will need to update your payment method before your next instalment due date after 30 November 2026. The ATO has said it will write directly to taxpayers who currently have a payment plan linked to a credit card, so keep an eye on your mail and inbox for instructions.

Understand your alternative options

The ATO has outlined alternative payment options at ato.gov.au/howtopay. Common alternatives include:

  • Direct debit from your bank account
  • BPAY from your transaction account
  • Electronic funds transfer (EFT)

Each option works slightly differently. Direct debit is set-and-forget – the ATO takes the agreed amount from your account on the due date. BPAY gives you more control over timing, as you initiate each payment through your bank. EFT is a straightforward bank transfer for one-off payments.

Keep using your credit card

If you relied on your credit card to manage cash flow around tax time, you do not have to give it up entirely. You can Bring your Own Card through Prospa, letting you pay business bills with any Australian-issued Amex, Visa, or Mastercard – even where cards are not usually accepted.

Here is how it works. You enter the bill details for the payee you want to pay, Prospa charges your credit card, and Prospa makes the payment to your nominated payee.

You can also switch on Prospa Rewards to earn 1 Prospa Point for every $1 paid. If you use a rewards credit card, you can earn your card’s rewards points too. A 1% fee plus GST applies per transaction while you have rewards switched on, and you can turn rewards on or off anytime. T&Cs and fees apply.

Using your credit card this way could help free up working capital and let you take advantage of interest-free periods, which can make a real difference when a tax bill lands at the wrong time. Always talk to your accountant about your businesses situation.

The bottom line

The 30 November 2026 deadline is firm. If you pay the ATO by credit card, now is the time to check your payment method and make a plan to switch. Whether you move to direct debit, BPAY, or keep using your credit card through Prospa, the key is to act before the cutoff so your payments stay on track.