ATO Stops Credit Card Payments From November 30, 2026

The Australian Taxation Office will stop accepting credit card payments after November 30, 2026. The decision follows a Reserve Bank of Australia review that banned merchants from charging card surcharges starting October 1. The ATO says it will not pass card processing costs to taxpayers. Small business groups and the Coalition oppose the move, calling it a double standard that forces businesses to absorb card fees while the tax office avoids them.

Why the ATO is pulling the plug

On October 1, 2026, the Reserve Bank’s new surcharge ban took effect, preventing merchants from directly charging customers a fee for card payments. The ATO announced the same day it would stop accepting credit cards after November 30. The tax office said it would not be appropriate to transfer card processing costs to the community. Credit cards accounted for only 2.3 per cent of ATO tax payments in 2024–25, with more than 60 per cent coming from larger businesses and wealthy groups rather than small businesses.

Small business groups call it hypocrisy

The Australian Chamber of Commerce and Industry chief executive Andrew McKellar said business groups were informed of the change only eight hours before it was announced. He called the decision “utter hypocrisy”, arguing that small businesses must absorb card fees while the ATO refuses to. Deputy Opposition Leader Jane Hume said the ban is unfair because many small businesses have no choice but to keep accepting cards and rely on credit payments to manage cash flow.

Opposition demands a reversal

Coalition leader Angus Taylor called the ATO decision “beyond comprehension” by an “insensitive government”. He said the government had imposed surcharges on small businesses while the ATO avoided them. Independent MP Allegra Spender, who ran a small business, said she would write to the ATO asking it to reconsider. Senator Pauline Hanson called the decision “a smash” on small business and demanded immediate reversal.

What taxpayers need to do now

Taxpayers with payment plans linked to a credit card must update their payment method before their first instalment due after November 30. Alternative payment methods include direct debit, BPAY, and electronic funds transfer. Debit cards, bank transfers, and direct debit arrangements will remain available. The ATO is giving businesses nearly two months to switch payment methods before the ban takes effect.

Final Thoughts

The ATO’s decision to stop accepting credit card payments creates a genuine clash: the tax office avoids card fees while small businesses absorb them. With the ban taking effect November 30, businesses must act now to switch payment methods or face disruption to their tax obligations.

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