Good news for businesses! The Australian Taxation Office (ATO) has confirmed it will continue accepting credit card payments until 30 June 2027, following concerns raised by small businesses about the proposed changes.
The ATO had originally planned to stop accepting direct credit card payments from 1 December 2026, following changes to card surcharge regulations introduced on 1 October 2026.
However, after significant feedback from the business community, the Federal Government has stepped in to temporarily cover the associated processing costs, allowing businesses more time to prepare.
What does this mean for businesses?
For now, businesses can continue paying their tax obligations directly to the ATO using a credit card, without the additional card surcharge.
This extension is particularly welcome for small businesses that rely on credit cards to help manage cash flow and meet tax payment deadlines.
What happens after June 2027?
From 1 July 2027, direct credit card payments to the ATO are expected to cease under the current arrangements.
Businesses will still be able to use third-party credit card payment providers, although additional fees and processing times may apply. Other payment methods, including bank transfers and debit cards, will remain available.
The ATO will continue consulting with businesses and industry representatives during the transition period.
Need advice?
If your business relies on credit cards to manage tax payments, now is a good time to review your payment arrangements and plan ahead.
The team at DGL Accountants is here to help you understand the changes and manage your business tax obligations with confidence.