Paying the ATO by credit card ends after 30 November 2026: your alternatives

What’s changing, and when?

The ATO has announced that it will stop accepting credit cards as a payment method after 30 November 2026. The reason, in the ATO’s words, is that following the Reserve Bank of Australia’s review, the cost of credit card merchant fees shouldn’t be passed on to the community.

For many people this changes nothing — they pay by BPAY or direct debit already. For some small businesses, though, a credit card has quietly been part of their tax strategy: pay the BAS on the card, then pay the card off over the following weeks as customers pay. That option is closing.

Who needs to act?

Your situation	What to do before 30 November 2026
You occasionally pay a BAS or assessment by card	Set up BPAY or another option from the ATO’s “how to pay” page
Your ATO payment plan instalments come off a credit card	Update the payment method before your next instalment due after 30 November
You rely on a card to bridge BAS payments each quarter	Build a new plan for timing — set-asides, an ATO plan or a business facility
You were planning to pay a large debt by card	Look at a payment plan or funding instead

The ATO says it’s contacting affected taxpayers with existing credit card payment plans. Don’t wait for the letter — check how your plan is set up in online services now.

Why is a missed payment the real risk?

If a plan instalment fails because the card is no longer accepted, that’s a missed instalment. Missing an agreed instalment is one of the triggers for a plan default, and when a plan defaults the whole overdue balance becomes immediately payable and the ATO may take firmer action. It would be a frustrating way to lose a plan you’d been keeping perfectly. Switching to direct debit removes the risk.

What are the alternatives to paying by card?

For making payments: the ATO’s how-to-pay page lists the current methods, including BPAY and direct debit. Use your payment reference number so the money reaches the right account.

For managing timing — the job the credit card used to do:

• A tax set-aside account. Move the GST and PAYG withholding share of income into it weekly, so the BAS is paid from money already put aside.
• Monthly BAS reporting. Smaller, more frequent amounts can be easier to plan for.
• An ATO payment plan. Online for debts under $200,000, with GIC compounding daily on the balance. See ATO payment plans.
• A business facility. A line of credit or unsecured business loan sized on turnover can smooth BAS timing — at a cost you should compare with the alternatives.

Was the card a symptom of something bigger?

Sometimes the credit card was simply convenient. Sometimes it was masking a business that regularly can’t meet its BAS from cash flow. If it’s the second, the end of card payments is a useful prompt to look at the bigger picture: pricing, debtor days, costs, and whether a one-off refinance of accumulated ATO debt would reset things. Our options checker is a good place to start.

An illustrative example

A boutique retailer has paid each quarter’s BAS by credit card for years, clearing the card over the following six weeks. With card payments ending, the owner sets up a separate tax account and starts moving one-eleventh of GST-inclusive takings into it every Friday. For the next quarter, while the account builds up, a small ATO payment plan covers the gap — on direct debit. Within two quarters, the BAS is paid in full from the set-aside account.

What should you check in the ATO portal this month?

A ten-minute check now can save a missed instalment later:

1. Log in to Online services for business (or ask your tax agent).
2. Open any payment plans and look at the payment method recorded for each.
3. Note the next instalment date that falls after 30 November 2026.
4. Switch to direct debit or another accepted method before that date.
5. Check BPAY details for one-off payments — each account has its own payment reference number.
6. Diary the next BAS and work out how it will be paid without a card.

If you’re a director, also check whether any of the amounts you would have put on a card relate to GST, PAYG withholding or super. Those carry director penalty risk, so they deserve a reliable payment path, not a last-minute scramble.

Is a business credit facility a sensible replacement?

It can be, for the right business. A line of credit or short-term unsecured facility gives a similar timing buffer to a credit card, but it’s a business product priced and sized for the business. Before setting one up, weigh three things:

• Cost. Compare the total cost of the facility with the GIC on an ATO plan (the ATO publishes the current GIC rate each quarter). GIC incurred from 1 July 2025 isn’t deductible; facility interest may be — ask your accountant.
• Discipline. A facility used to pay every BAS can quietly become a permanent debt. Set a rule: cleared within a set number of weeks, every quarter.
• The bigger picture. If the facility would be propping up a business that can’t fund its tax from trading, fix the underlying problem first.

Unsecured options for trading businesses typically run from $5,000 to $500,000, sized on turnover and bank statements.

Need a new way to handle tax timing?

If the end of credit card payments leaves a gap in how your business manages tax — or reveals an ATO balance that’s bigger than you’d like — see if you qualify for funding. There’s no credit check to enquire, your details stay with one team rather than going to a list of lenders, and a real person will help you decide whether a loan, a plan or simply better set-asides is the answer. Please give us accurate figures so the advice fits.