The ATO planned to stop accepting credit cards after 30 November 2026. The government has stepped in. Here is what changed, who it affects, the dates to check, and what to do now, including if cash is the real problem.
Get a plan B readyLast updated 14 October 2026
On 1 October 2026, the ATO announced it would stop accepting credit cards after 30 November 2026. It said 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 followed the Reserve Bank of Australia's review of merchant card payment costs and surcharging.
On 9 October 2026, the government announced transitional funding so the ATO can keep accepting credit cards until the end of the financial year, 30 June 2027. Costs are to be finalised in the mid-year budget update. The government has also asked the ATO to consult on how best to support taxpayers experiencing financial hardship.
The important distinction: this was government intervention, not the ATO reversing its position. The extension gives you more time, but it is a delay and not a cancellation. Free and low-fee methods like debit card and bank transfer remain available.
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.
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.
| Obligation | Generally due | Card accepted directly by the ATO? |
|---|---|---|
| Quarterly BAS, July to September | 28 October 2026 | Yes |
| Monthly BAS, October | 21 November 2026 (a Saturday, so generally Monday 23 November) | Yes |
| Monthly BAS, November | 21 December 2026 (a Monday) | Yes |
| Quarterly BAS, October to December | 28 February 2027 (a Sunday, so generally Monday 1 March) | Yes |
| Quarterly BAS, January to March | 28 April 2027 (a Wednesday) | Yes |
| Payment plan instalment | As set in your plan | Yes up to and including 30 June 2027 |
| Quarterly BAS, April to June | 28 July 2027 (a Wednesday) | Not directly. Check the ATO's how to pay page for options |
Confirm your own due dates with the ATO or your tax agent.
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 ATO | Bank facility | Sell the asset | Release its value (ABL) | |
|---|---|---|---|---|
| What it does | Defers the debt. No cash comes in | New borrowing | Turns the asset into cash for good | Borrows against the asset, short term |
| Assessed on | Agreed with the ATO | Credit, financials and trading history | The buyer's valuation | The value of the asset |
| Speed | Depends on the ATO | Often weeks | Days to weeks | Typically 24 to 48 hours |
| Best for | A debt you can repay over time | A longer-term need | Assets you no longer need | Asset-rich, time-critical, not long term |
Not sure which fits? Start with the ATO and your accountant.
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.
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.
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.
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.
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.
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.
The ATO will accept credit cards directly until 30 June 2027. It had announced on 1 October 2026 that it would stop after 30 November 2026, but on 9 October 2026 the government announced transitional funding to extend that to the end of the financial year. After 30 June 2027, credit cards can still be used through third-party payment providers, which may charge their own fees. The ATO encourages taxpayers to check any third-party provider's fees, charges and processing times, and to verify their credentials before sharing information or making payments. Other payment options are listed at ato.gov.au/howtopay.
No. The extension comes from government intervention. The government will provide transitional funding so the ATO can keep accepting credit cards until 30 June 2027, with costs to be finalised in the mid-year budget update. The ATO has not said it will keep accepting cards directly beyond that date.
Your card should keep working until 30 June 2027, but it is worth planning to move to another payment method before then. Check the ATO's payment plan page for current guidance, as the ATO has said it will provide more detailed information to affected taxpayers. The steps are at ato.gov.au/managepaymentplan.
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.
Check how your payments are made, plan for a move off 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.
If you own an asset, get it valued. Free and no obligation.
Cash-Out Solution · Tax Debt · For Brokers · For Accountants & Advisors
Speak to your accountant about your tax position. ATO timing is based on the ATO's announcement of 1 October 2026 and its extension release of 9 October 2026, and the Government's announcement of 9 October 2026.
