• The ATO stops accepting credit card payments after 30 November 2026
  • You can switch to direct debit, BPAY, or electronic funds transfer
  • Paying through payments platforms means you can still pay using your credit card

From 1 December 2026, the Australian Taxation Office (ATO) will stop accepting credit card payments. If you have always paid your tax with a credit card, you might be wondering what your options are now. The good news is that you have several alternatives, and one of them still lets you use your credit card to pay. Here is a clear rundown of what is available so you can choose what works best for your business.

Direct debit: set and forget

Direct debit is the closest thing to a hands-off tax payment. You authorise the ATO to take the agreed amount straight from your bank account on the due date, and you do not have to remember to initiate each payment.

This option suits businesses that want predictability. Once it is set up, your instalments come out automatically, which helps you avoid missed or late payments. The main thing to check is that you always have enough funds in the account on the due date, because a failed direct debit can cause headaches with the ATO.

BPAY: pay from your bank account

BPAY gives you more control over timing. Instead of the ATO taking the money automatically, you log in to your bank and initiate the payment yourself using the ATO’s biller code and your reference number.

This works well if you prefer to hold on to your cash until the last moment, or if your income fluctuates and you want to time payments around when money comes in. The trade-off is that you need to stay on top of due dates yourself, since BPAY payments do not happen automatically.

When making BPAY payments through a Prospa Business Account, you can switch on rewards and earn 1 Prospa Point per every $1 paid. You can redeem those points for gift cards from a range of iconic brands, or you can convert into Qantas Points with Qantas Business Rewards.

Electronic funds transfer: a straightforward bank transfer

An electronic funds transfer (EFT) is the simplest option for one-off payments. You transfer money from your bank account to the ATO using the details provided on your notice or in ATO online services.

EFT is useful for businesses that pay tax in lump sums rather than through a regular plan. It is quick and direct, but like BPAY, you are responsible for making sure the payment lands on time. Keep in mind that transfers can take a business day or two to process, so it pays to send the money a little early.

Keep using your credit card

If you have been using a credit card to manage cash flow around tax time, you do not have to give it up. Bring your own card lets you link any Australian-issued Amex, Visa, or Mastercard when you pay through Prospa, so you can pay suppliers and business bills, even where cards are not usually accepted.

The way it works is simple. 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.

For small business owners, this option may offer additional flexibility. Using your credit card this way may help free up working capital and let you take advantage of interest-free periods on your card. That flexibility can make a real difference when a tax bill arrives at the wrong time of the month. Always speak to your accountant about your business’s situation.

How to choose the right option for your business

The right choice depends on how you like to manage your cash flow. If you want a set-and-forget option, direct debit is worth a look. If you prefer to control the timing of each payment, BPAY or EFT could suit you better. And if you want to keep the flexibility and rewards of your credit card, you could look into paying through Prospa.

Whatever you choose, the key is to make the switch before 30 November 2026 so your payments stay on track.