Australian Taxation Office to End Credit Card Payments After November 2026

The Australian Taxation Office (ATO) has announced that it will cease accepting credit cards as a payment method after 30 November 2026. The decision follows the Reserve Bank of Australia's Review of Merchant Card Payment Costs and Surcharging.

According to the ATO, the agency determined that passing credit card merchant fees onto the community would not be appropriate. While acknowledging that some taxpayers use credit cards to manage obligations, the agency noted that alternative payment methods will remain available.

To manage the transition, the ATO stated it will write directly to individuals and businesses that have existing payment plans linked to credit cards. Taxpayers who use direct debit arrangements connected to a credit card must update their payment details before their first instalment due after the 30 November 2026 deadline.

The agency noted that the change will affect a minority of taxpayers, stating that approximately 2.3% of tax payments were made via credit card in the 2024–25 financial year. Of those card transactions, more than 60% were made by privately owned and wealthy groups, as well as public and multinational businesses.

The ATO stated it will continue to offer support to taxpayers experiencing financial hardship or difficulties meeting their obligations throughout the transition.

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