18/10/2026
ATO Extends Credit Card Payments for Tax Debts to 30 June 2027
The ATO has extended its acceptance of credit card payments for tax debts until 30 June 2027, giving businesses and taxpayers more time to prepare for potential changes.
The extension follows concerns from the tax profession about the proposed removal of the payment option and the lack of consultation before the original decision was announced.
For some small businesses, paying tax by credit card has been a useful way to manage cash flow, particularly when balancing GST, PAYG and other tax obligations with day-to-day operating expenses.
Removing this option could make things more difficult for businesses that rely on the additional time a credit card provides to manage their payments.
The extension is welcome news for those businesses, but it is only a temporary arrangement. The ATO has not yet provided certainty about what will happen after 30 June 2027, with concerns remaining about the consultation process and the longer-term arrangements.
It is also worth remembering that paying tax by credit card is not always the most cost-effective option. Processing fees and interest charges can add up, particularly if the balance is not paid off in full. Businesses should consider these costs alongside their cash flow needs when deciding how to pay their tax liabilities.
What should businesses do?
With more time available, now is a good opportunity to review your cash flow and how you manage tax payments. Setting funds aside for upcoming liabilities and planning ahead can help avoid unnecessary pressure when payment deadlines arrive.
If you are concerned about meeting an upcoming tax payment, speak with your us today 4688 2500. There may be options available, but it is always better to address potential difficulties before a payment falls due.
For now, the extension provides some breathing room for businesses that use credit cards to pay their tax. However, with the longer-term position still to be determined, it makes sense to keep an eye on further announcements and ensure your business is prepared for any changes.