ATO Ditches Credit Cards: Taxpayers Must Switch Payment Methods by November

Australia's tax office will stop accepting credit card payments for tax bills after November 30, 2026. The Australian Taxation Office (ATO) announced this major change following a review of merchant card payment costs and surcharging by the Reserve Bank of Australia.

The ATO claims that it would not be appropriate to transfer the cost of credit card merchant fees to taxpayers. As a result, those who currently use credit cards to pay their tax will need to update their payment method before November 30, 2026, or face non-compliance with their payment plan.

Taxpayers with direct debit arrangements linked to a credit card must update their payment method by the next instalment due after November 30. The ATO will be writing directly to taxpayers who currently have a payment plan linked to a credit card and offering guidance on how to make the change at www.ato.gov.au/managepaymentplan.