ATO Credit Card Payments Extended to 30 June 2027: What It Means for Your BAS and Payment Plan

On 1 October the ATO announced it would stop accepting credit cards after 30 November 2026. On 9 October the date moved. After the Federal Government agreed to provide transitional funding, the ATO said it will keep accepting credit card payments for tax obligations until 30 June 2027 (ATO, QC 108165).

If you pay your BAS or tax bills by card, or have an ATO payment plan linked to a credit card, you now have more than eight months instead of a few weeks. The end date still applies. This article sets out which payments can still go on a card, what to do with a payment plan, and how to use the extra time so the April to June 2027 BAS does not arrive as a surprise.

The short answer

The ATO will accept credit cards until 30 June 2027. After that date you can still pay with a credit card only through a third-party payment provider, which sets its own fees and processing times. Debit cards, BPAY, bank transfers and direct debit from a bank account are not affected. What counts is the day you pay: a BAS, an income tax bill or a payment plan instalment paid by card on or before 30 June 2027 is accepted. For a business that lodges BAS quarterly, the January to March 2027 BAS, due 28 April 2027, is the last one that falls inside the window, and the April to June 2027 BAS, due 28 July 2027, is the first that falls outside it. If an ATO payment plan is linked to a credit card, the ATO now asks you to change it before your first instalment due after 30 June 2027. The earlier deadline of 30 November 2026 no longer applies.

What changed between 1 and 9 October

The reason behind the change is the same as before. Before 1 October, the ATO passed the card fee on to the person paying. The new surcharging rule stopped that, so the fee fell on the ATO, which ABC News reported the ATO put at about $200 million a year. The Treasurer’s release says the ATO asked the card companies for lower fees and they did not offer fees low enough. It also says the ATO will keep talking to them, and that the ATO has been asked to consult on support for people in financial hardship and on alternatives for businesses and individuals who cannot pay any other way.

The number of people affected is small. The Treasurer’s release says just over 2% of individuals and around 5% of small businesses paid by credit card in 2024–25. The ATO’s own figure is that about 2.3% of tax payments were made by credit card that year, and more than 60% of card payments came from privately owned and wealthy groups and public and multinational businesses (QC 108119).

Which payments can still go on a card

Source: ATO, Due dates for lodging and paying your BAS (QC 33695), Managing your payment plan (QC 106183) and QC 108165. If you lodge online you may get two extra weeks for some quarters, and registered tax and BAS agents can have later dates. For the April to June 2027 quarter, every one of those dates is after 30 June 2027. The ATO also lets you make early payments towards a future BAS with any available payment method (QC 33695), so a card payment made on or before 30 June 2027 can be put towards that quarter if you choose. You would be paying an estimate before the quarter has closed.

If your payment plan is linked to a credit card

The ATO’s payment plan page, updated on 9 October 2026, says that if your plan is linked to a credit card you must change to another payment method before your next scheduled instalment due after 30 June 2027. Card payments after that date will be unsuccessful, and the plan may move into arrears or default (QC 106183). A plan in default is where firmer debt recovery starts, so this is the one date to put in the diary.

• Credit card to debit card. Update the card on the existing plan in online services. Make the change at least 1 business day before the instalment date.
• Credit card to a bank account. The system does not switch a plan between a card and a bank account. You cancel the existing plan and set up a new one using the bank account, at least 3 business days before the instalment date. Do both on the same day so the debt is never outside a plan.
• Pay some instalments another way. You can move one or more instalments to another method, such as BPAY, and leave the rest of the plan in place, as long as each instalment is paid by its due date.
• Where to do it. Individuals and sole traders: ATO online services, then Tax, Payments, Payment plans. Businesses: Online services for business, then Accounts and payments, Payment plans. Online changes are not available if the plan runs longer than 24 months, or if the change would take it past 24 months.

Setting up a new plan now? A 12-month plan with its first instalment in December 2026 has five of its twelve monthly instalments after 30 June 2027. Linking it to a debit card or a bank account from the start saves changing it halfway through.

Letters and pages that still say 30 November. On 1 October the ATO said it was writing to everyone with a payment plan linked to a credit card. Some ATO pages still carry the 30 November date in their body text under a banner that points to the extension, for example the small business newsroom item Changes to credit card payments (QC 108120, updated 15 October 2026). The 9 October release and the payment plan page set out the current position.

Paying late now costs more than it used to

For many businesses a credit card works as a short bridge: the ATO is paid on the due date and the card is cleared a few weeks later. Without it, an amount you cannot pay on time becomes an overdue ATO debt that attracts the general interest charge (GIC), compounding daily. The GIC rate for October to December 2026 is 11.51% a year (ATO, QC 16145), and the rate is reset each quarter. GIC incurred on or after 1 July 2025 is no longer tax deductible, even when the debt relates to an earlier year (ATO, QC 105049). Interest also keeps accruing on a debt in a payment plan (QC 33695).

These are our calculations, using 11.51% ÷ (1 − tax rate). They ignore franking and other effects and are only meant to show the size of the gap when you compare GIC with a business loan or overdraft. As an illustration, not a client: a $20,000 BAS paid 60 days late at the October to December 2026 daily rate of 0.03153425% attracts about $382 of GIC, and none of it is deductible.

After 30 June 2027: third-party providers

The ATO says taxpayers who want to keep using a credit card after 30 June 2027 may use third-party payment providers, and asks them to consider each provider’s fees, charges and processing timeframes. It also asks taxpayers to watch for scams and to verify a provider’s credentials before sharing information or making a payment (QC 108165).

Two practical points follow. A payment through a provider is on time only when it reaches the ATO by the due date, so the provider’s processing time has to be added to your own. And the provider’s fee is set by the provider, so compare it with the GIC on a late payment and with the cost of a payment plan before you decide which route is cheaper for a given quarter.

Eight months to change the habit

1. Check your payment plans now. In online services, look for any plan linked to a credit card and note the first instalment due after 30 June 2027. Moving to a debit card needs one business day’s notice; moving to a bank account means cancelling and re-creating the plan with three business days’ notice.
2. Link any new plan to a debit card or bank account. It avoids a second change later.
3. Set aside GST and PAYG withholding as you go. The ATO’s own suggestion is to keep GST, PAYG withholding and super in a separate bank account (QC 105049). Moving a share of each month’s amounts across means the April to June 2027 BAS, due 28 July 2027, is already funded when it falls due.
4. Consider monthly BAS. The ATO says smaller monthly payments can make cash flow easier to manage. A change requested early in a quarter can generally start straight away, and you may not be able to change again if you changed within the last 12 months (QC 33695).
5. Set up bank direct debit early. A direct debit from an Australian bank account takes at least 7 working days to activate, on top of the ATO’s payment processing time, and the ATO does not yet have PayID (QC 50296).
6. If a shortfall is coming, call before the due date. The ATO asks businesses that cannot pay in full and on time to contact it or their registered tax professional before the due date. Online payment plans are available for debts of $200,000 or less and need an up-front payment (QC 33695).

💡 In one line: you can keep paying the ATO by credit card until 30 June 2027, any payment plan linked to a card has to move before its first instalment after that date, and the cash for the April to June 2027 BAS, due 28 July 2027, is worth setting aside from now.

Related reading: PAYG instalments, varying them, and the GIC, director penalty notices for small business, the first-year compliance calendar for a new company, and our guide to this change in Chinese.

Frequently asked questions

When will the ATO stop accepting credit cards?

After 30 June 2027. The ATO first announced it would stop after 30 November 2026, then on 9 October 2026 extended the date to 30 June 2027 after the Government agreed to provide transitional funding. After that date, credit cards can only be used through third-party payment providers. Debit cards, BPAY, bank transfers and direct debit are not affected. Source: ATO, QC 108165, published 9 October 2026, retrieved 16 October 2026.

Can I still pay my BAS by credit card?

Yes, until 30 June 2027. For quarterly BAS, the January to March 2027 quarter, due 28 April 2027, is the last one inside the window. The April to June 2027 quarter, due 28 July 2027, cannot be paid directly to the ATO by credit card. For monthly BAS, May 2027 (due 21 June 2027) is the last month inside the window. The ATO accepts early payments towards a future BAS by any available method. Source: ATO, QC 33695 and QC 108165, retrieved 16 October 2026.

My ATO payment plan is linked to a credit card. What do I need to do?

Change it before your first instalment due after 30 June 2027. Card payments after that date will be unsuccessful and the plan may move into arrears or default. Switching to a debit card is an update in online services, at least 1 business day before the instalment. Switching to a bank account means cancelling the plan and setting up a new one, at least 3 business days before the instalment. The earlier 30 November 2026 deadline no longer applies. Source: ATO, Managing your payment plan, QC 106183, updated 9 October 2026, retrieved 16 October 2026.

Why did the ATO decide to stop taking credit cards?

Card surcharging rules that started on 1 October 2026 mean the ATO can no longer ask the person paying to cover the card fee. The ATO says card companies did not offer fees low enough for it to keep accepting cards, and ABC News reported the ATO put the cost at about $200 million a year. The Government is funding the cost until 30 June 2027, with the amount to be finalised in MYEFO. Source: ATO, QC 108151; Treasurer’s media release, 9 October 2026; retrieved 16 October 2026.

Is the interest the ATO charges on late tax deductible?

No, not for general interest charge (GIC) incurred on or after 1 July 2025, even if the debt relates to an earlier year. GIC compounds daily, and the rate for October to December 2026 is 11.51% a year. Interest keeps accruing on debts in a payment plan, although the amount falls as the debt is paid down. Source: ATO, QC 105049 and QC 16145, retrieved 16 October 2026.

Talk it through

Send us how you currently pay the ATO (credit card, debit card, BPAY or direct debit), whether you have a payment plan and what it is linked to, whether you lodge BAS monthly or quarterly, and the amounts on your last two BAS. We will tell you which of your payments fall after 30 June 2027, what to change and when, and how much cash the April to June 2027 BAS is likely to need.

Book a 20 minute call, or phone us: Melbourne 03 9600 0803 | Brisbane 07 3188 8081.

At Wiselink, bookkeeping, BAS, PAYG instalments, income tax and the ATO account are handled in one practice, split by function, with senior review on work that carries risk. That means we can see the GST and tax withheld building up during each quarter and tell you months ahead what to set aside, so the amount is known well before the due date. Our bookkeeping and payroll services page lists the rest.

Credentials: CPA, Registered Tax Agent, ASIC Registered Agent, NTAA member, Xero, MYOB and QuickBooks partner, in practice since 2013. Our registration can be checked on the TPB public register. We work in English and Mandarin.

Melbourne Camberwell (1381 Toorak Rd, Camberwell VIC 3124) · Brisbane Eight Mile Plains (3 Clunies Ross Court, Eight Mile Plains QLD 4113)

Sources

• ATO, ATO extends transition period for taxpayers using credit cards until 30 June 2027 (QC 108165), published 9 October 2026.
• The Treasurer, ATO to continue accepting credit cards until 30 June 2027, media release, 9 October 2026.
• ATO, ATO to stop accepting credit cards after 30 November 2026 (QC 108119), last updated 1 October 2026.
• ATO, Paying with credit card: easier to read (QC 108151), last updated 9 October 2026.
• ATO, Managing your payment plan (QC 106183), last updated 9 October 2026.
• ATO, Other payment options (QC 50296), last updated 9 October 2026.
• ATO, Changes to credit card payments (QC 108120), last updated 15 October 2026.
• ATO, Due dates for lodging and paying your BAS (QC 33695), last updated 17 September 2026.
• ATO, General interest charge rates (QC 16145), last updated 4 September 2026.
• ATO, ATO reminder on interest deductibility changes from 1 July (QC 105049), published 10 June 2025.
• ABC News, Federal government to fund surcharge costs to delay ATO credit card payment ban after backlash, 9 October 2026.

All sources retrieved 16 October 2026. The pre-tax equivalent rates and the $20,000 example are our arithmetic; the example is illustrative and does not describe a client. This article is general information and does not take your circumstances into account. Whether a payment plan is approved, and on what terms, is decided by the ATO case by case. Liability limited by a scheme approved under Professional Standards Legislation.

Reviewed by Lily Zhang, CPA and registered tax agent, founder of Wiselink Accountants. Wiselink has worked with small businesses and individual taxpayers in Melbourne and Brisbane, in English and Chinese, since 2013.