From 1 December 2026, the ATO will no longer accept credit card payments. Only credit cards are affected, so debit cards, BPAY, direct debit and bank transfer all continue to work as normal. If you currently pay your tax, BAS or an ATO payment plan with a credit card, you will need to switch to another method before the cut-off.
What is changing, and when
The ATO has announced that after 30 November 2026, it will stop accepting credit cards as a way to pay. A few points to be clear on:
- The change takes effect from 1 December 2026.
- Only credit cards are being removed. Debit cards are still accepted.
- Credit cards made up only a small share of ATO payments, about 2.3% in 2024-25, so most people are already using another method.
Why the ATO is making the change
The change follows the Reserve Bank of Australia’s review of the cost of card payments. The government decided it is not appropriate to pass the merchant fees charged on credit card payments on to taxpayers through the card payment surcharge the ATO currently applies. Rather than absorb those fees, the ATO is removing credit cards as a payment option.
How to pay the ATO instead
There are several easy alternatives, and most people already use one of them:
- BPAY from your bank account, using the ATO biller code and your payment reference number (PRN).
- Direct debit from your bank account, as a one-off payment or set up for a payment plan.
- Bank transfer (electronic funds transfer) using the ATO’s account details and your PRN.
- Debit card, which remains accepted.
- Online through myGov or ATO online services, which show your balance and payment options.
The ATO lists the full details at ato.gov.au/howtopay.
If you pay a payment plan by credit card
This is the group most likely to be caught out. If you have an ATO payment plan and pay the instalments by credit card, the ATO will contact you directly, and you will need to update your payment method, for example to direct debit from a bank account, before your next instalment falls due after 30 November 2026. Updating it in time matters, because a missed instalment can cause your payment plan to default.
A note for business owners on cash flow
Some business owners used a credit card to pay tax or BAS to smooth out timing, or to earn points. With that option going, if you were leaning on it to manage cash flow around tax deadlines, it is worth planning ahead. The most reliable approach is to set money aside for tax, GST and PAYG as you earn it, so the payment is ready when it is due. If you genuinely cannot pay on time, an ATO payment plan (paid by direct debit) is available, and talking to us early gives you the most options.
How MS Financial Services can help
We can help you set up direct debit or BPAY, update your payment details before the cut-off, arrange an ATO payment plan if you need one, and plan your cash flow around tax deadlines. See our Tax & Compliance and Virtual CFO & Financial Management services, or get in touch.
Frequently Asked Questions
When does the ATO stop accepting credit cards?
After 30 November 2026, meaning credit card payments will no longer be accepted from 1 December 2026.
Can I still pay the ATO with a debit card?
Yes. Only credit cards are being removed. Debit cards are still accepted, along with BPAY, direct debit and bank transfer.
How can I pay the ATO instead?
You can pay by BPAY, direct debit, bank transfer (electronic funds transfer), debit card, or online through myGov or ATO online services. Full details are at ato.gov.au/howtopay.
I pay my payment plan by credit card, what should I do?
Update your payment method, such as to direct debit from a bank account, before your next instalment after 30 November 2026. The ATO will contact affected taxpayers directly, and updating in time keeps your plan from defaulting.
Why is the ATO doing this?
Following the RBA’s review of card payment costs, the government decided it is not appropriate to pass credit card merchant fees on to taxpayers through a surcharge, so the ATO is removing credit cards rather than absorbing those fees.