The ATO Will Keep Taking Credit Cards Until 30 June 2027: What It Means If You Owe Tax
Updated: the ATO's credit card cut-off moved from 30 November 2026 to 30 June 2027. If your return shows a bill, here are your due dates, options and late costs.
Most people get a refund at tax time. But if you had a second job, some interest or investment income, a side hustle, or not quite enough tax taken out of your pay, your 2025-26 return might come back with a bill instead.
Plenty of people simply put that bill on a credit card. In early October the ATO announced it would stop accepting credit card payments after 30 November 2026. After a backlash from small business groups, the federal government stepped in on 9 October with extra funding, and the ATO has now extended the cut-off to 30 June 2027.
So credit cards still work for this year's tax bill. But the change is still coming, so here is what is happening, why, and how to handle a tax bill this year without paying more than you need to.
What is actually changing
The short version: credit cards are out, everything else stays.
- Up to and including 30 June 2027, you can still pay the ATO by credit card. The ATO originally planned to stop after 30 November 2026, but has extended this transition period by seven months.
- After 30 June 2027, credit card payments directly to the ATO will no longer be accepted, for any kind of tax debt. The ATO says people who still want to use a credit card after that can use a third-party payment provider, which charges its own fees.
- Debit cards, BPAY, bank transfer, direct debit and paying in person at Australia Post all remain available.
- If you have an ATO payment plan linked to a credit card, you will need to switch the plan to another payment method before the cut-off, or risk it falling behind. You now have until 30 June 2027 to do that.
Why the ATO is doing this
It comes straight out of the card surcharge ban that started on 1 October 2026. Before that, the ATO passed the bank fees for card payments on to you as a surcharge. Now that surcharges on eftpos, Mastercard and Visa are banned, the ATO would have to swallow those fees itself.
And they are not small. In a statement, Commissioner of Taxation Rob Heferen said merchant fees (what banks charge to process card payments) are estimated at almost $200 million a year and rising. The ATO's view is that absorbing that cost would mean less tax collected and less money for government services, so it is dropping credit cards rather than keep paying.
Debit cards cost far less to process, which is why they are staying.
The extension does not change that reasoning. Treasurer Jim Chalmers announced the government will give the ATO transitional funding to cover the card fees until the end of the financial year, with the cost to be finalised in the mid-year budget update in December. The government has said that funding will not continue beyond 30 June 2027.
The dates that matter if you owe tax
If you lodge your own 2025-26 return, the deadline is 31 October 2026. That is a Saturday this year, and under the ATO's rule that a due date falling on a weekend moves to the next business day, self-lodgers effectively have until Monday 2 November.
Any tax you owe on a self-lodged return is generally due by 21 November 2026. That is also a Saturday, so the payment date moves to Monday 23 November.
With the extension, the credit card option is still open on that payment date, and for the rest of this financial year. If you plan to keep paying tax bills by credit card, the date to remember is now 30 June 2027.
Lodging through a registered tax agent? Your lodgment and payment dates can be later. Go by the due date on your notice of assessment (the letter that confirms what you owe) and check with your agent.
The trap: "no credit cards" does not mean "no cards"
A lot of people have read the headlines as the ATO giving up on card payments altogether. It is not. Debit cards will still be accepted after 30 June 2027, and so will BPAY from your bank account. Only credit cards are going. If your tax bill is sitting in your everyday account, nothing about how you pay has to change.
What paying late really costs
If you miss the due date, the ATO adds general interest charge, or GIC, on whatever is unpaid. It is worked out daily and compounds, meaning you pay interest on yesterday's interest too.
For the October to December 2026 quarter the GIC rate is 11.51% a year, up from 11.43% in the previous quarter. The rate is reset every three months. And since 1 July 2025, GIC is no longer tax deductible, so there is no tax break to soften it.
Worked example
Mia works full time on a salary and earns some extra income from weekend tutoring. She lodges her own return in October and it shows a $3,000 bill, due Monday 23 November.
Option one: she pays the full $3,000 by 23 November, by debit card, BPAY or bank transfer. Cost on top of the bill: nothing.
Option two: she waits until she gets paid in late December and clears it on 24 December, 31 days late. At 11.51% compounding daily, the GIC comes to about $29.
That might not sound like much, but it is money for nothing, and it keeps growing the longer the balance sits there. Leave the same $3,000 unpaid for three months and, if the rate stayed the same, the GIC would be closer to $87.
The lesson is not that late payment is a disaster. It is that a plan beats a delay. If Mia cannot pay it all on time, telling the ATO early and setting up a payment plan is far better than going quiet.
Cannot pay it all at once? Use a payment plan
If you owe $200,000 or less, you can usually set up a payment plan yourself online. Log in to myGov, open ATO online services, then go to Tax, Payments and Payment plans. You choose to pay weekly, fortnightly or monthly until the balance is cleared.
Two things to know before you do. GIC still applies to a debt on a payment plan, so the faster you pay it off, the less interest you pay. And if your plan will still be running after 30 June 2027, link it to a bank account or pay by debit card, BPAY or transfer, so it does not stall when credit cards are switched off.
Reality check: workarounds come with fees
Some third-party payment services let you pay a bill to the ATO using a credit card, then pass the money on for you. They charge their own fee for doing it. Before using one, compare that fee with simply setting up a payment plan, and always make sure you are dealing with a genuine business. Only ever pay the ATO using the payment reference number (PRN) shown on your ATO statement or in myGov.
Your to-do list
A few minutes now saves an annoying surprise later.
- Lodge your own return by Monday 2 November if you have not already, so you know whether you owe anything.
- If you have a bill, pay it by Monday 23 November using any method you like. Credit card still works until 30 June 2027.
- Have a payment plan running on a credit card? Switch it to a bank account or another method before 30 June 2027.
- Make a note of the ATO's BPAY biller code, 75556, and find your PRN in myGov so future payments are quick.
- If you cannot pay in full, set up a payment plan before the due date rather than after it.
FAQ
When does the ATO stop accepting credit cards?
After an extension announced on 9 October 2026, the ATO will accept credit card payments up to and including 30 June 2027, instead of the original 30 November 2026 cut-off. After that, credit cards will no longer be accepted directly for tax payments. Debit cards, BPAY, bank transfer, direct debit and payments at Australia Post remain available.
When is my 2025-26 tax bill due if I lodge my own return?
Tax owed on a self-lodged return is generally due by 21 November 2026. Because that falls on a Saturday, the payment can be made on Monday 23 November 2026. If a registered tax agent lodges for you, check the due date on your notice of assessment.
What happens if I pay my tax bill late?
The ATO charges general interest charge on the unpaid amount from the due date. For October to December 2026 the rate is 11.51% a year, calculated daily and compounding, and it is not tax deductible. Setting up a payment plan early is usually the best option if you cannot pay in full. This is general information, not tax advice.
Run your own numbers