Treasurer Delays the ATO Credit Card Ban to 30 June 2027 After Small Business Backlash. Builders Get More Runway to Move Tax Off the Card.
On 9 October 2026 the Government said it will fund the ATO to keep accepting credit card payments for tax until 30 June 2027, instead of stopping from 1 December. Master Builders welcomed the delay but still wants the ban scrapped, saying small builders were given just two months’ notice. About 5% of small businesses paid tax by credit card in 2024–25. After 30 June 2027 cards will only work through third-party providers, so builders who lean on the card for BAS should plan the switch now.
The card stays in the wallet until 30 June 2027
On Friday 9 October 2026 Treasurer Jim Chalmers, Small Business Minister Anne Aly and Assistant Treasurer Daniel Mulino announced that the Government will fund the Australian Taxation Office to keep accepting credit card payments for tax until 30 June 2027.
The ATO had planned to stop taking credit cards much sooner. HIA said the changes had been due to take effect on 1 December 2026. AAP reported that the ATO announced the ban on 1 October, the same day the RBA-overseen ban on card surcharges took effect.
The ATO confirmed the new date the same day in its own media release, and its payment options page now says that after 30 June 2027 you will no longer be able to use a credit card to pay the ATO.
This article summarises government, ATO and industry statements. It is not tax, legal or financial advice. Talk to your registered tax agent about your own position.
What changed, and what didn't
| Item | What the official statements say | | --- | --- | | Credit cards accepted directly by the ATO | Until 30 June 2027, funded by the Government, with costs to be finalised in the Mid-Year Economic and Fiscal Outlook (MYEFO) | | Original start of the ban | 1 December 2026 (HIA, 9 October 2026) | | Who used cards to pay tax in 2024–25 | Just over 2% of individuals and around 5% of small businesses (Treasurer's release) | | After 30 June 2027 | Credit card payments only through third-party payment providers, plus free and low-fee methods such as debit card and bank transfer | | Next steps | The ATO will consult on support for people in financial hardship and on alternatives for businesses and individuals that cannot pay another way |
The ATO also warned taxpayers looking at third-party providers to "carefully consider relevant fees, charges and processing timeframes" and to check a provider's credentials before sharing information or paying.
According to AAP, ATO Commissioner Rob Heferen had said merchant fees were expected to cost the tax office almost $200 million a year. The Treasurer said credit card companies "did not offer sufficiently low fees" to let the ATO keep accepting cards, and that the ATO will keep talking to them.
Builders say delay is not enough
Master Builders Australia welcomed the delay but still wants the ban dropped. "We still maintain that the ban must be scrapped," CEO Denita Wawn said on 9 October. "Small building businesses were originally given just two months' notice of a change with major implications for cash flow, tax compliance and business operations."
Ms Wawn said the Government gave businesses almost five years to prepare for the phase-out of cheques, and that the "cumulative effect of recent policy decisions is making it harder, riskier and less attractive to run a small building business".
The issue may not be settled. AAP reported that shadow treasurer Tim Wilson said the Coalition would introduce legislation to scrap the ban. On the other side, Accountants Daily reported that the Institute of Public Accountants warned the longer runway could lead more taxpayers to use cards for tax and push costs higher.
What it means for the builder's desk
- Find out how much tax goes on the card. Ask your bookkeeper which BAS, PAYG instalment and other ATO payments were paid by credit card over the past year, and how much of that relied on the card's interest-free days.
- Plan the switch now, not next June. You have until 30 June 2027. Work out how those payments will be covered from the business account, and whether that changes the timing you need on progress claims.
- Set tax aside as claims come in. With lumpy progress payments, putting GST and PAYG aside from each claim as it is paid makes the move away from cards easier.
- Price third-party options properly. Card payments through a third-party provider remain possible after 30 June 2027, but the ATO says to check fees, processing times and the provider's credentials. Allow for processing time so you don't miss a due date.
- Raise problems early. The ATO says taxpayers who need more help should contact it or speak with their registered tax professional. Do that before a payment falls due, not after.
- Watch December. MYEFO will set out the cost of the delay, and the ATO's consultation on hardship and other arrangements is still to come.
Sources: Treasurer Jim Chalmers, Minister Anne Aly and Assistant Treasurer Daniel Mulino, ATO to continue accepting credit cards until 30 June 2027 (9 October 2026); ATO, ATO extends transition period for taxpayers using credit cards until 30 June 2027 (9 October 2026); ATO, Other payment options; Master Builders Australia, ATO credit card ban deferral (9 October 2026); HIA, Government delays ATO credit card payment changes (9 October 2026); AAP, Treasurer swipes left on tax office credit card ban (9 October 2026); Accountants Daily, ATO credit card ban delay could lead to higher usage (October 2026).
