ATO credit-card payments end after 30 November: check your payment plan

The Australian Taxation Office will stop accepting credit-card payments after 30 November 2026. For a small business that pays tax by card, the immediate job is to choose another payment method. For a business with a payment plan linked to a credit card, it is also to check which instalment will be affected.

The ATO’s small-business announcement, updated on 1 October, sets out the change. This is notice of a future cutoff. Credit-card payments have not stopped today, and other ways of paying remain available.

In its separate media release, the ATO says the decision follows the Reserve Bank’s review of merchant card payment costs and surcharging. Its stated position is that government should not transfer credit-card merchant-fee costs to the community.

Check how your business pays

Start with the actual payment process. Ask the owner or bookkeeper who makes ATO payments, which method they use and whether any instalments are set up against a credit card. Check the payment plan itself rather than relying on a note in the accounts system saying the bill is being paid.

The announced restriction is on credit cards. Debit cards remain an option. The ATO’s payment-plan guidance describes switching to debit-card payments, direct debit from a financial-institution account, or another method for individual instalments, such as BPAY.

Choose the replacement through the ATO’s How to pay guidance, and check what is needed to use it. Our recommendation is to record the chosen method, the person responsible for setting it up and the next payment’s due date in the business calendar.

If the business has been using a credit card to pay before cash reaches its bank account, review the funding for the replacement method with the owner. The ATO acknowledges that changing a relied-on payment method can make managing cash flow harder.

Payment plans need their own check

The ATO says a payment plan linked to a credit card needs a different payment method before the next instalment due after 30 November 2026.

Leaving the existing card attached creates a risk that the instalment will fail. The plan can then fall into arrears or default. A payment plan is therefore worth checking even if the business does not expect to make a separate, one-off tax payment around the cutoff.

For businesses, the online path is Online services for business → Accounts and payments → Payment plans. Sole traders use ATO online services → Tax → Payments → Payment plans. The managing-your-payment-plan page explains the changes available.

Allow the required lead time: changes need at least one business day before an instalment for debit-card direct debit, or three business days for bank-account direct debit. Start before those minimums if you need help with the setup.

Switching between card payments and debit from a financial-institution account requires cancelling the existing plan and setting up a new one. Arrange the replacement as part of that change. The ATO warns that cancelling a plan while overdue debt remains can prompt collection action. Contact it if you cannot make the change online.

The ATO says changing one or more instalments to another payment method leaves the rest of the plan unaffected if each instalment is paid on time. Give the bookkeeper the updated arrangement and have them confirm the first payment using the new method.

BPAY needs the right reference and enough time

If you choose BPAY, use the correct payment reference number (PRN). The ATO’s BPAY instructions say different tax types have different PRNs, including income tax and activity statements. Check the reference for the account being paid.

The ATO says a BPAY payment may take up to four business days to be received and appear on the account, and late-payment interest may apply. Build that processing time into the payment calendar rather than scheduling the transfer only when the tax payment is due.

Get help before a payment is missed

The ATO says it is writing directly to affected payment-plan users. Businesses needing help can contact it on 13 11 42 during business hours, or speak to their registered tax professional.

If the alternative method creates an affordability problem, raise it before the payment is due. Tell the ATO or your tax professional which payment is affected and when it falls due.

Use the official ATO website or your established tax professional when checking the new method. Our guide to checking an invoice before paying provides a repeatable payment-verification process, and our ATO scam-email alert covers suspicious tax correspondence. More changes affecting business payments and obligations are in Rules & costs.

Checklist

• Check the current ATO payment method with your bookkeeper. Identify tax payments and payment-plan instalments that use a credit card before the 30 November 2026 cutoff.
• Update a credit-card-linked payment plan through ATO online services. Arrange the replacement method before the next instalment due after 30 November 2026; contact the ATO if the online change is unavailable.
• Allow the required setup time before an instalment. Have the bookkeeper allow at least one business day for debit-card direct-debit changes or three business days for bank-account direct-debit changes.
• Check any BPAY payment before scheduling it. Use the PRN for the correct tax account and allow up to four business days for the payment to reach the ATO and appear on the account.
• Check funding for the next payment with the owner. If the replacement method creates a payment problem, contact the ATO on 13 11 42 during business hours or your tax professional before it falls due.
• Confirm the first payment using the new method. Have the bookkeeper check that the payment has been made and recorded against the right ATO account.