ATO credit card changes

The ATO is ending credit card payments. What business owners need to know.

What is changing, who it affects, the dates to check, and what to do now, including if cash is the real problem.

Get a plan B ready

Last updated 6 October 2026

At a glance

  • Last day for cards30 November 2026
  • Card-linked plansUpdate the payment method before the next instalment due after that date
  • SourceATO announcement, last updated 1 October 2026
What is changing

Credit cards stop after 30 November 2026.

The ATO has announced it will stop accepting credit cards as a payment method. It says that, as a government agency, it would not be appropriate for the cost of credit card merchant fees to be passed on to the community. The decision follows the Reserve Bank of Australia's review of merchant card payment costs and surcharging.

The methods that remain are listed on the ATO's how to pay page. If a payment plan or direct debit is linked to a card, the steps to change it are on the payment plan page.

Who is affected

Does this affect you?
If a card is how you pay, yes.

  • Anyone with a card-linked payment plan or direct debit
  • Owners who use a card to get breathing room in a tight month
  • Brokers, advisors and bookkeepers who help clients manage tax payments
Dates to check

Which payments fall before and after the cut-off.

These are the generally applicable due dates. Your own dates depend on how you report, so confirm them in ATO online services or with your tax agent. Where a due date falls on a weekend or public holiday, payment is generally due the next business day.

ObligationGenerally dueCard still accepted?
Quarterly BAS, July to September28 October 2026Yes
Monthly BAS, October21 November 2026 (a Saturday, so generally Monday 23 November)Yes
Payment plan instalmentAs set in your planYes up to and including 30 November 2026, no after that
Monthly BAS, November21 December 2026 (a Monday)No
Quarterly BAS, October to December28 February 2027 (a Sunday, so generally Monday 1 March)No

Confirm your own due dates with the ATO or your tax agent.

What to do now

Five things to sort before 30 November.

  1. Check how you pay. Find out which payments, plans or direct debits are linked to a card.
  2. Update any card-linked plan before the next instalment due after 30 November.
  3. Check your due dates. Note which bills fall after the cut-off and where the cash will come from.
  4. Talk to the ATO early if cash is tight. Ask about a payment plan before a due date passes.
  5. Line up a plan B if the gap is cash rather than the payment method.
If cash is the real problem

The value is in the business.
It's tied up in assets.

For most owners the bill isn't the problem. The cash is working elsewhere. Here is how the main ways through compare.

Payment plan with the ATOBank facilitySell the assetRelease its value (ABL)
What it doesDefers the debt. No cash comes inNew borrowingTurns the asset into cash for goodBorrows against the asset, short term
Assessed onAgreed with the ATOCredit, financials and trading historyThe buyer's valuationThe value of the asset
SpeedDepends on the ATOOften weeksDays to weeksTypically 24 to 48 hours
Best forA debt you can repay over timeA longer-term needAssets you no longer needAsset-rich, time-critical, not long term

Not sure which fits? Start with the ATO and your accountant.

Watch

Straight answers, from our Managing Director.

Steve Heavey, Managing Director of Asset Based Lending, explains what Asset Based Lending is and when a cash out solution fits: you own the asset, time is short and your other options are slow or closing.

Watch
Steve Heavey, Managing Director, Asset Based Lending
  • Transcript

    Asset Based Lending provides a solution for businesses that are asset rich and cash poor, to release equity in assets they already own. We're a short-term solution for businesses that need money in a hurry, where we can release cash to resolve short-term problems, whether that's ATO tax debt or cash flow challenges. We've lent money to businesses, using assets they already own, to pay wages. We can operate really quickly because we're lending against an asset that's already owned by the company. We're not lending money to buy assets.

  • Transcript

    We had an organisation recently that was on the winding-up list at the ATO. The ATO were trying to wind up their transport company, and they were two days from losing the business to liquidation. Within two days we were able to provide enough money for the business to pay the ATO back, get off the winding-up list and keep trading. One of the best outcomes was that their broker came in and refinanced the family home, so they could pay us back, and the business continued. That saved 40 jobs. This business had 20 trucks on the road, and it lives to fight another day.

    I think that's the greatest part of asset based lending. We're here to help businesses survive right now. We can do that because we can move quickly. Nine times out of 10, it's the urgency that's required in these situations where ABL is able to come to the fore, and we provide the bridging solution so they can resolve their issues and get the help they need, whether that's through their accountant or their finance broker.

  • Transcript

    Steve: We'll lend money for up to six months. We've probably had several customers in that situation at the end of the term, and every one of them has said to us that they were going to sell the asset anyway. It was one of their exit strategies from the start. What Asset Based Lending does is buy people time. We allow them to resolve the issue and get out the other side. Because you can access the funding straight away, you can resolve that tax debt straight away, take the pressure off, get the wolves from the door, and really focus on your business and get yourself out of trouble.

    Update, October 2026: the maximum term is now nine months.

    At the end of the term, every single person we've talked to has said, "Steve, we were going to sell the asset anyway, but you provided a short-term solution and got us out of trouble at the time. What we're doing now is what we were going to do right at the start, and it's been a great outcome for us."

    Interviewer: That time piece is really interesting. If you're going to sell, you need a valuation anyway, but then the time keeps going while you try to find the person who's going to pay at that valuation. And we know the market: you're never going to get the price it's valued at. It's always going to be under.

    Steve: Yeah. You never get full price at a liquidation sale, I can tell you that. So in the situations where we do sell assets at the end of the term, we run a proper four-week campaign. It's all transparent and all online. We've got a business partner in Lloyds Auctions & Valuations, where everything's transparent and you can see live bids coming in on your asset. Because we're lending 70% of the forced liquidation value, not the market value, there's always a surplus at the end of the term. We take our principal and interest back, and whatever's left after the asset's sold goes back to the client.

  • Transcript

    This is a real equity release play. There are a lot of businesses out there that are asset rich but cash poor. They're sitting on assets because they know that at some point they may need them. If you're talking about a construction company, that could be trucks, cranes and excavators, all sitting around waiting for the next job. Those assets are doing nothing, when they could be used to resolve some of the short-term cash flow challenges the business may face.

    So it's about educating people that this is a short-term solution that helps businesses smooth out their cash flow and resolve those issues, using assets they already own instead of taking on more lending, which puts them under even more pressure.

  • Transcript

    Well, you could do that, but a lot of our clients are in urgent need of cash. If you go down the traditional path of selling an asset, or going to a bank to secure finance, you can safely say it's going to take at least two to four weeks before that even happens. In some cases with banks, it could be up to three months before you get a decision on commercial finance.

    Asset Based Lending can provide a solution the same day. If you've got assets sitting idle and you're willing to park those assets with us, we can release funds on day one.

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Questions

Common questions we get asked.

What is the last day I can pay the ATO by credit card?

The ATO will accept credit cards up to and including 30 November 2026. After that date, credit cards will no longer be accepted as a payment method. Other payment options are listed at ato.gov.au/howtopay.

What if my ATO payment plan or direct debit is linked to a credit card?

You will need to update your payment method before your next instalment due after 30 November 2026. The ATO is writing directly to taxpayers with a card-linked payment plan. The steps are at ato.gov.au/managepaymentplan.

Who is affected by the ATO credit card change?

The ATO says the vast majority of taxpayers do not pay with a credit card. Around 2.3 per cent of tax payments were made by credit card in 2024-25, and more than 60 per cent of card payments were made by privately owned and wealthy groups and public and multinational businesses.

What can I do if I rely on a credit card to manage my tax payments?

Check how your payments are made, update any card-linked payment plan, check your upcoming due dates, and talk to the ATO early if cash is tight. If the problem is cash rather than the payment method, options include a payment plan with the ATO, a bank facility, selling an asset, or short-term finance secured against an asset you own. Speak to your accountant about your own position.

Need a new way to carry the BAS?

If you own an asset, get it valued. Free and no obligation.

Speak to your accountant about your tax position. ATO details are taken from the ATO's announcement, last updated 1 October 2026.