Quick answer: Yes, but only until 30 November 2026. After that date the ATO will stop accepting credit cards, including for payment plans paid by direct debit from a credit card. You can still pay by debit card, by bank transfer, or by BPAY or direct debit from your bank account.
The ATO announced the change on 1 October 2026. If you pay your tax, your BAS or a payment plan by credit card, you’ll need another way to pay from 1 December.
Why the ATO is stopping credit cards
The ATO ties the decision to a Reserve Bank of Australia review of merchant card payment costs and surcharging. Its reason is cost. As a government agency, it says it would not be appropriate for “the cost of credit card merchant fees to be transferred to the community”.
Credit cards are rare for tax: the ATO puts them at about 2.3% of tax payments in 2024-25.
What changes after 30 November
- No more credit cards. You won’t be able to use a credit card to pay the ATO, whether through ATO online services, Government EasyPay or a direct debit set up on a credit card.
- Payment plans on a credit card must change. If your plan is linked to a credit card, switch to another payment method before your next instalment due after 30 November. Cut-off dates apply to the change, so leave time. A credit card payment after that date will be unsuccessful, and your plan may move into arrears or default.
- Watch for a message from the ATO. If your payment plan uses a credit card, the ATO says it is writing to you directly with what to do next.
- Other ways to pay remain. The ATO says other payment methods will remain available, and its How to pay pages list BPAY and direct debit from a bank account, bank transfer, debit cards and Australia Post.
What to do now
- Check how you pay. Do you pay the ATO by credit card through ATO online services or Government EasyPay? Is any payment plan or direct debit linked to a credit card?
- Move a payment plan in time. Change it before its next instalment due after 30 November. The ATO’s Managing your payment plan page shows how.
- Set up the new way early. A direct debit from your bank account takes at least 7 working days to start, and a payment can take up to 4 business days to reach the ATO. If a payment is late, you may be charged interest.
- Use the right reference. Whichever way you pay, put your payment reference number (PRN) in the reference field, so the money reaches the right account.
- Ask for help if you need it. For extra support, the ATO’s advice is to phone it on 13 11 42 during business hours or to talk to your registered tax professional. Help for people in financial hardship continues, the ATO says.
Common questions
Can I still pay the ATO with a debit card?
Yes. The change is to credit cards only. Government EasyPay takes debit cards, and a payment plan can be moved from a credit card to a debit card in ATO online services.
How do I move my payment plan off a credit card?
Log in to ATO online services (through myGov for individuals and sole traders, or Online services for business) and open Payment plans. Changing to a debit card is an update to your plan. Changing from a card to a bank account means cancelling the plan and setting up a new one; if you can’t do that online, contact the ATO. The ATO needs at least 1 business day’s notice before an instalment paid by debit card, or 3 business days before one paid from your bank account. A new direct debit from a bank account takes at least 7 working days to start, so if you’re moving to a bank account, start at least 7 working days before your next instalment.
What if my plan is still on a credit card after 30 November?
The instalment will be unsuccessful, and your plan may go into arrears or default. If a plan defaults, the whole overdue balance becomes payable straight away and the ATO may take firmer action.
Can I pay the ATO with PayID?
Not yet. The ATO says it doesn’t have PayID. You can still make a bank transfer to the ATO’s account with your PRN. Check your bank’s processing times so the money arrives on time.
How long does a payment take to reach the ATO?
Up to 4 business days to reach the ATO and show on your account. A new direct debit from your bank account takes at least 7 working days to set up, and a cheque sent by mail takes longer. BPAY and ATO online services are the quickest ways to pay, the ATO says.
I pay by BPAY from my credit card account. Can I keep doing that?
The ATO’s pages don’t answer this directly. Its Pay with BPAY page, last updated in March 2026, says your bank can help you pay by BPAY from a credit card account. Its newer notice says that after 30 November you won’t be able to use a credit card to pay the ATO. To be safe, pay BPAY from a bank account, or check with the ATO on 13 11 42 before 30 November.
Does this change the card payments my business takes?
No. This change is about paying the ATO. A separate change applies if your business takes card payments: under new card network rules, businesses must remove surcharges for paying by card from 1 October 2026, unless an exception applies. The Reserve Bank’s surcharging FAQs explain it.
As a Registered BAS Agent, Julie can help you set up a direct debit from your bank account. Get in touch before 30 November to talk through your options.
