ATO to Scrap Credit Card Tax Payments From December

Sydney — The Australian Taxation Office (ATO) will stop accepting credit card payments for tax liabilities after November 30, 2026, following the Reserve Bank of Australia’s review of merchant card payment costs and surcharging.

The ATO said the decision was made because it would not be appropriate for merchant fees associated with credit card payments to be passed on to the community.

The change will affect taxpayers who currently use credit cards to pay their tax bills, including some people using payment plans linked to credit cards, the ATO said.

“Some taxpayers currently rely on credit card payments to manage their tax payments,” the ATO said, acknowledging that the change would require adjustments for some taxpayers.

The tax office said it would continue supporting taxpayers experiencing financial hardship or other circumstances that make it difficult to meet their tax obligations.

The ATO said it is writing directly to taxpayers who have payment plans linked to credit cards, outlining the changes and steps they must take.

Taxpayers with direct debit arrangements linked to a credit card must update their payment method before their next instalment falls due after November 30 to ensure they remain compliant with their payment plans, the ATO said.

Taxpayers can change the payment method attached to their payment plan through its online guidance, while those needing additional assistance can contact the agency or seek help from a registered tax professional, the office said.

The change is expected to affect a relatively small proportion of taxpayers.

ATO data shows that about 2.3% of tax payments were made using credit cards in 2024–25.

More than 60% of those credit card payments were made by privately owned and wealthy groups, as well as public and multinational businesses.

The ATO said taxpayers should consider alternative payment methods and seek assistance early if they anticipate difficulties meeting their obligations.