Australia Extends Credit Card Tax Payment Facility
The federal government is subsidising credit card surcharges for tax payments until June 2027 to avoid an earlier ban.
Updated on Oct. 21, 2026 in Taxes
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The Australian Taxation Office will continue to accept credit card payments for tax bills until June 2027. This decision follows federal government intervention to cover surcharge fees of up to 1.5% after business owners protested a planned payment ban.
Why it matters
The extension resolves concerns regarding the short notice of a previously scheduled credit card payment ban. By providing funding for transaction costs, the government ensures businesses can maintain their current payment methods for tax obligations.
The federal government is covering credit card surcharge fees of up to 1.5% for tax payments. During the 2024-25 financial year, 2.3% of all tax payments were processed via credit card, while small business usage stood at 5%.
The players
Australian Taxation Office
The Australian Taxation Office is the federal agency responsible for administering the tax system, collecting revenue, and enforcing compliance across the country.
The details
The Australian Taxation Office is maintaining credit card facilities after protests from business owners regarding the removal of these payment options. Additionally, the office recently blocked over 10,000 tax returns filed by unregistered preparers, which collectively included over $170 million in questionable deduction claims.
Timeline
1 October 2026: Reserve Bank ban on credit card surcharges took effect.
2 November 2026: Deadline for tax return self-preparers.
30 June 2027: Expected period of high credit card tax payments.
June 2027: Australian Taxation Office will stop accepting credit cards.
Market Dynamics
This extension modifies the implementation of the Reserve Bank of Australia's surcharge regulations to preserve established payment channels. It represents a strategic pivot to maintain taxpayer convenience while managing broader merchant fee policies.
Taxpayers can continue using credit cards for ATO payments without incurring surcharges up to 1.5% until June 2027. Those who manage tax obligations should note that this remains a temporary subsidised measure rather than a permanent policy.
The takeaway
Taxpayers should take advantage of the subsidised credit card payment window before it closes in mid-2027. Reviewing tax deductions with a registered professional remains critical after the ATO identified $170 million in problematic claims from unregistered preparers.
What happens next
Taxpayers should prepare for the final phase-out of credit card payment options for ATO accounts, which is scheduled to occur in June 2027.
Further reading
Learn more about evolving payment regulations on the Australia Taxes page.
Source note: This article includes information reported by Stockhead.
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