If you use a credit card to pay your tax, you’ve been given a reprieve. On 1 October 2026, the ATO announced it would stop accepting credit card payments after 30 November 2026. After further discussions with the Government, that date has now been pushed back to 30 June 2027.
That’s an extra seven months to sort out a new way to pay. Here’s what it means for you and what to do with the time.
Nothing Changes for Now
Until 30 June 2027, you can keep paying your BAS, PAYG instalments, income tax and other ATO bills by credit card, just as you do today. If you have an ATO payment plan set up on a credit card, that keeps working until then too.
Here’s how things look either side of the cutoff:
| How you pay | Up to 30 June 2027 | From 1 July 2027 |
|---|---|---|
| One off payments by credit card (BAS, PAYG instalments, tax bills) | No change | Not accepted by the ATO directly. Third party providers only, with their own fees |
| Payment plan instalments charged to a credit card | No change | Payments will fail. Switch before the cutoff |
| BPAY, direct debit and other bank options | No change | No change |
Watch Your June Quarter BAS
The cutoff falls on the last day of the financial year, which catches out one payment in particular. Your BAS for the April to June 2027 quarter isn’t due until late July 2027, or later if we lodge it for you. By then, the ATO will no longer take your card.
Sophie runs a cafe and pays her quarterly BAS by credit card to help smooth her cash flow. Her March quarter BAS, due in April 2027, can still go on the card.Her June quarter BAS, due after 1 July 2027, can’t. She needs a new way to pay that one, and every BAS after it.
Payment Plans Need Switching
If you’re paying off a tax debt through an ATO payment plan linked to a credit card, any instalments due after 30 June 2027 will fail. A failed payment can put your plan at risk, so it’s important to change the payment method before the cutoff rather than after.
Tom set up a payment plan to clear a $12,000 tax debt, with monthly instalments charged to his credit card until December 2027. If he does nothing, his July 2027 payment will bounce. Switching his plan to direct debit from his bank account before 30 June 2027 keeps it on track.
Can I Still Use a Credit Card After 30 June 2027?
Yes, but not directly with the ATO. You’ll be able to pay through a third party payment provider, which then pays the ATO for you. Before you go down that path, keep in mind that:
- these providers charge their own fees, which can add up on large tax bills
- payments can take longer to reach the ATO, so leave plenty of time before the due date
- the payment only counts once the ATO receives it, so a late arrival could still attract interest.
Scammers are known to target taxpayers, so check that any provider is legitimate before you hand over your card details. The ATO will never ask you to pay a tax debt with gift cards or cryptocurrency, or into a personal bank account. If you’re unsure whether a message or website is genuine, call us first.
Other Ways to Pay
BPAY and direct debit from your bank account will still be available, along with other options listed on the ATO’s how to pay page. For most people, BPAY or direct debit is the simplest swap, with no card fees.
Think About Your Cash Flow
Many businesses use a credit card to buy time on their tax payments. Losing that option means planning ahead. One simple approach is to move your GST and PAYG withholding into a separate bank account each time you get paid, so the money is ready when your BAS is due.
A small business collects about $6,000 in GST each quarter. Instead of putting the BAS on a credit card, the owner transfers roughly $500 into a separate tax account every week. When the BAS falls due, the money is already sitting there.
If you can’t pay on time, talk to us early about a payment plan. Since 1 July 2025, interest the ATO charges on late or unpaid tax is no longer tax deductible, so falling behind costs more than it used to.
What Should You Do Now?
- Check how you pay. Look at whether your BAS, instalments or payment plan currently go on a credit card.
- Switch payment plans early. Move them to direct debit well before 30 June 2027.
- Plan for the June quarter BAS. It’s the first payment that won’t go on your card.
- Talk to us. If you rely on a credit card for cash flow, we can help you set up a plan that works from July 2027.