The Australian Taxation Office will stop accepting Credit card payments after 30 November 2026, giving taxpayers a two-month transition period following broader changes to card surcharging that commenced on 1 October 2026.

The transition is intended to give taxpayers additional time to consider alternative ways of meeting their tax obligations. Debit cards, BPAY, direct deposits, Australia Post services and international money remitters will remain available as payment channels.

Rising Merchant Fees Behind the Change

The decision reflects the cost associated with processing credit card transactions. Merchant fees linked to credit card payments are estimated at almost $200 million each year and are expected to increase over time.

The ATO said continuing to absorb these expenses would reduce the amount of Revenue available to support government services. Providing additional public funding to cover credit card processing costs would ultimately have a similar budgetary effect.

Changes to card surcharging also required the tax authority to reconsider its payment arrangements. Unlike commercial businesses, the ATO cannot incorporate card-processing costs into the price of a product or service because tax liabilities are determined through legislation.

With most taxpayers already using free or lower-cost payment methods, the ATO determined that discontinuing credit card acceptance was an appropriate response.

Attempts to Reduce Credit Card Costs

The ATO acknowledged that some taxpayers prefer using credit cards to meet tax liabilities and indicated that it would have preferred to retain the payment method.

Before deciding to withdraw credit card payments, the tax authority approached credit card companies in an effort to reduce transaction costs. However, sufficiently low processing rates could not be secured.

The combination of rising merchant expenses and restrictions on passing those costs on to taxpayers made continued acceptance of credit cards difficult to maintain on an ongoing basis.

Credit Cards Represent a Small Share of Collections

Credit card transactions account for only 2.3% of total ATO collections, indicating that the payment method represents a relatively limited proportion of overall tax receipts.

The distribution of those payments is also concentrated among certain taxpayer groups. More than 60% of credit card payments by value were made by privately owned and wealthy groups, as well as public and multinational businesses.

Credit card usage is comparatively limited among smaller taxpayers. Around 5% of all small businesses used credit cards to meet their tax obligations during 2024–25, while just over 2% of individual taxpayers used credit cards for tax payments.

These figures suggest that the majority of taxpayers are already relying on alternative payment channels.

Alternative Tax Payment Options Remain Available

Taxpayers affected by the change will continue to have several methods available for making payments to the ATO.

Debit card payments will remain available alongside BPAY and direct deposit. Tax liabilities can also be paid through Australia Post and approved international money Remittance channels.

The transition period through 30 November 2026 is designed to allow taxpayers currently dependent on credit cards to review these options and make any necessary changes to their payment arrangements.

Support Available for Taxpayers Facing Difficulties

The ATO has also reiterated that taxpayers experiencing difficulty meeting their tax obligations should seek assistance as early as possible.

Taxpayers can contact the ATO directly or discuss their situation with a registered tax professional. Depending on individual circumstances, appropriate support may include payment plans that allow outstanding liabilities to be managed over time.

Additional assistance measures are available for people experiencing serious personal or financial hardship. These arrangements are intended to help taxpayers manage their obligations when financial circumstances make immediate payment difficult.

The Withdrawal of credit card payments represents a change in payment administration rather than taxpayers' underlying tax obligations. With the final acceptance date set for 30 November 2026, taxpayers who currently rely on credit cards have a limited transition period to move to another available payment method.