Alternative payment options for taxpayers are outlined at ato.gov.au/howtopay.
Following the Reserve Bank of Australia’s Review of Merchant Card Payment Costs and Surcharging, the ATO will stop accepting credit cards as a payment method after 30 November 2026.
As a government agency, the ATO has decided it would not be appropriate for the cost of credit card merchant fees to be transferred to the community.
Alternative payment options for taxpayers are outlined at www.ato.gov.au/howtopay.
The ATO recognises that some taxpayers currently rely on credit card payments to manage their tax payments and understands this change may require some adjustments. The ATO is committed to helping taxpayers transition to alternative payment methods and will continue to support those experiencing financial hardship or other circumstances that make it difficult to meet their obligations.
To assist taxpayers, the ATO is writing directly to those who currently have a payment plan linked to a credit card to explain the changes and the steps they need to take. Taxpayers with a direct debit arrangement linked to a credit card will need to update their payment method before their next instalment due after 30 November 2026 to ensure compliance with their payment plan. Taxpayers can update the payment method linked to their payment plan by following the guidance at www.ato.gov.au/managepaymentplan.
Taxpayers who need extra support are encouraged to visit www.ato.gov.au/supporttolodgeandpay, contact the ATO on 13 11 42 during business hours.
These changes may affect taxpayers differently depending on their individual circumstances. If you are unsure how any of the measures outlined in the ATO Credit Card Changes may apply to you or your business, please contact Herries Davidson & Co for professional advice.