The Australian Taxation Office (ATO) was set to stop taking credit card payments from 1 December 2026. The ATO has now delayed that change until 30 June 2027.

For many small businesses, paying the ATO on a credit card is a useful way to manage cash flow, earn rewards, and hold on to working capital a little longer.

The good news is that you can still pay the ATO with a credit card after this change. You can Bring your own card with Prospa, which allows Australian businesses to pay business bills using any Australian-issued Amex, Visa, or Mastercard – even where cards are not usually accepted. Here’s how it works.

What has changed: The deadline extension explained

If you pay the ATO with a credit card, you have probably had a confusing week. First the ATO announced they would stop accepting credit card payments from 1 December 2026. Then, after widespread backlash from small businesses, business groups and MPs, the federal government have stepped in to delay the change.

The original announcement sparked concern across the small business community. Business groups warned the move could put further pressure on businesses that rely on credit cards to manage cash flow.

In response, the government negotiated a year-long transition period. The ATO will now continue accepting credit card payments until 30 June 2027, with the government covering the cost of the delay.

This means businesses have more time to account for the change, but the change is still coming. Find out more about the changes in our guide about what small businesses need to do before 30 June 2027.

How paying through Prospa works

Bring your own card lets you link any Australian-issued Visa, Mastercard or Amex credit card so you can pay suppliers and business bills through Prospa even where credit card payments aren’t normally accepted – this includes ATO tax payments.

The process is simple:

  1. Link any Australian-issued credit card to your Prospa Account.
  2. Enter the payment details – this would be your ATO payment reference number and the amount.
  3. Confirm and pay.

Prospa then charges your card and pays the bill on your behalf. You keep the convenience of paying on card, and the bill gets paid through a method the ATO still accepts.

Which ATO payments you can make through Prospa

You can Bring your own card to pay a range of ATO obligations, including:

  • Business Activity Statement (BAS) payments
  • Pay As You Go (PAYG) instalments
  • PAYG withholding
  • Income tax
  • Other ATO debts that have a payment reference number

If your ATO account has a payment reference number, you can generally use it to make the payment through Prospa.

What it costs and what you can earn

Switch on Prospa Rewards to earn 1 Prospa Point for every $1 paid on eligible payments. If you use a rewards card, you will also earn credit card rewards points from your card issuer too.

A credit card processing fee (2% for Amex and 1.2% for Visa or Mastercard) applies, plus if rewards are switched on there is a 1% rewards fee plus GST, this is charged separately per transaction while rewards are switched on. Rewards can be switched on or off at any time, so you stay in control of how you pay.

Here are some examples of how points can add up:

  • An ATO tax payment of $5,000 earns 5,000 Prospa Points.
  • An inventory invoice of $3,000 earns 3,000 Prospa Points.
  • An electricity bill of $1,000 earns 1,000 Prospa Points.

You can redeem Prospa Points for gift cards from a range of iconic brands or convert into Qantas Points with Qantas Business Rewards.

Keeping your card details secure

Your card details are tokenised and protected with bank-grade encryption. Prospa partners with PCI DSS-compliant providers to help keep your information secure.

Tokenisation means your actual card number is not shared each time you make a payment. Instead, a secure token stands in for your details, which helps reduce the risk of your information being exposed.

Paying the ATO on card is still an option

The ATO’s decision to stop accepting credit cards directly changes how some businesses manage tax payments, but it does not close the door on paying by card altogether.