While changes to card surcharges commenced more broadly on 1 October 2026, the ATO will continue accepting credit card payments until 30 November 2026 to provide taxpayers with a 2-month transition period to consider alternative payment options.
The costs associated with accepting credit card payments are significant, with merchant fees estimated to be almost $200 million annually and expected to continue increasing over time.
It is not tenable for the ATO to absorb the costs associated with accepting credit cards on an ongoing basis. This would result in less revenue being collected by the ATO and ultimately, less funding being available for all government services.
Meeting the cost of surcharges through additional public funding for the ATO would have the same ultimate outcome.
The ATO had to respond to the ban on card surcharging. Because tax liabilities are legislated, the ATO cannot build card payment costs into prices. With free and lower-cost payment options already used by the majority of taxpayers, the ATO determined it was appropriate to stop accepting credit cards.
We recognise that some taxpayers value paying by credit card. We would have preferred to continue accepting credit cards. To try and reduce the cost we approached credit card companies, however they declined to offer a sufficiently low rate.
Taxpayers will continue to have access to a range of payment options, including debit card, BPAY® and direct deposit. Payments can also be made through Australia Post and international money remitters.
Importantly, while credit card payments represent only 2.3% of total ATO collections, more than 60% of credit card payments by value were made by privately owned and wealthy groups, and public and multinational businesses.
Around 5% of all small businesses, used credit cards to pay their tax obligations in 2024–25. Just over 2% of individual taxpayers used credit cards to pay their tax.
We remain committed to supporting taxpayers who need assistance. Anyone experiencing difficulty meeting their tax obligations should contact the ATO or speak with their registered tax professional as early as possible. We will work with taxpayers to identify appropriate support options, including payment plans where suitable.
For those experiencing serious personal or financial hardship, the ATO has a range of assistance measures available to help people manage their tax obligations during difficult circumstances.