ATO blocks credit card tax payments from December
From December, the ATO will no longer accept credit card payments for tax bills, citing surcharge costs.
The ATO will stop accepting credit card payments from December after announcing it cannot absorb the surcharges vendors can no longer pass to customers. A Reserve Bank ruling banning surcharges, effective from 1 October, is expected to save consumers about $1.6 billion yearly.
The move has alarmed the Labor government, with minister Claire O'Neill warning that small business cash flow concerns matter. About 2.3 per cent of tax payments used credit cards in 2024/25.
The ATO will write to affected taxpayers and explain the changes and their options.
- About 1.6 billion dollars
- Expected annual consumer saving
- 2.3 per cent of tax payments
- Credit card payment share
- 1 October
- Surcharge ban effective date
Why it mattersMany small business owners use credit cards to manage tax payments; this removes that option and may tighten their cash flow.
AustraliaAustralian taxpayers and small business owners will lose the ability to pay tax bills with credit cards, affecting cash management strategies.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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