Highlights

  • For trustees planning their year-end cash flow, it is worth being clear about where things now stand.
  • The approach suggests the ATO had approached card companies, but they had declined to offer a low enough rate.
  • Because tax liabilities are set by law the ATO could not build the cost into its prices.
  • On 9 October 2026 the ATO announced that after discussions with the government and the provision of transitional funding.

SMSF trustees pay the ATO for a range of obligations: the fund's income tax, the annual supervisory levy, instalments and, from time to time, penalties or member-related amounts. Some have used a Credit card for convenience or cash flow.

The original announcement

On 1 October 2026, the ATO announced it would stop accepting credit cards as a payment method after 30 November 2026.

In a statement on 2 October 2026, Commissioner of Taxation Rob Heferen said merchant fees on card payments were estimated at almost $200 million a year and rising.

The extension

On 9 October 2026, the ATO announced that, after discussions with the government and the provision of transitional funding, it would continue accepting credit card payments for tax obligations until 30 June 2027. The ATO's earlier releases now carry a note pointing to that extension.

The ATO also said it would keep consulting Stakeholders about support for people in financial hardship and alternative arrangements for those who cannot pay by other methods.

What this means for SMSFs

For most SMSF trustees, the practical position is:

  • credit card payments to the ATO remain available until 30 June 2027, based on the ATO's 9 October announcement;
  • other payment methods named by the Commissioner, including debit card, BPAY and direct deposit, remain available, as do payments through Australia Post;
  • payments for the fund's obligations should come from the fund's own bank account, consistent with the requirement to keep fund money separate from trustees' personal money; and
  • trustees who have set up payment plans linked to a credit card should watch for ATO correspondence about changes after the transition period.

The last two points deserve emphasis.

Practical considerations for trustees

Trustees can prepare by:

  • confirming how the fund currently pays its income tax and supervisory levy;
  • setting up BPAY or direct deposit from the fund's bank account, using the correct payment reference number;
  • checking any payment plan arrangements and updating the payment method if needed before 30 June 2027; and
  • keeping enough cash in the fund to meet tax liabilities when they fall due, rather than relying on short-term credit.

Hypothetical example: a Trustee has paid the fund's tax each year using a personal rewards credit card and then reimbursed himself from the fund.

The takeaway

The ATO initially said it would stop accepting credit cards after 30 November 2026, but has since extended the transition until 30 June 2027.