ATO credit card changes: what happens after 30 June 2027

Is the ATO stopping credit card payments?

Short answer: Yes. The ATO's payment page (updated 9 October 2026) states: "After 30 June 2027, you will no longer be able to use a credit card to make payments to the ATO." Until then, card payments to the ATO continue and the ATO charges no card fee.

The decision was set out in a statement from the Commissioner of Taxation. The ATO said accepting cards costs it almost $200 million a year in merchant fees, that it cannot build those costs into tax liabilities set by legislation, and that credit cards made up only 2.3% of collections.

The original plan was to end card payments in late 2026. After public reaction, the date moved, and the ATO's own guidance now points to 30 June 2027 as the last day for direct credit card payments. You can read the current wording on the ATO's other payment options page.

What changed on 1 October 2026?

From 1 October 2026 the Reserve Bank banned surcharges on debit, prepaid and credit card payments on the major card networks, following its review of merchant card payment costs and surcharging. Details are on rba.gov.au.

For the ATO, the practical effect was immediate: it stopped charging a card payment fee. Paying the ATO directly by credit card has been fee-free since that date. The catch is that the ATO is also winding down card acceptance altogether, so the fee-free window closes after 30 June 2027.

The ban changed behaviour elsewhere too. Some payment platforms used by strata managers, property managers and insurance brokers stopped accepting cards from 1 October 2026 rather than absorb the cost. Businesses that used those channels to put rent, levies or premiums on a card found the option gone overnight. See our guide to the RBA surcharge ban for the full picture.

The RBA's FAQ clarifies that the ban applies to card-triggered surcharges, not to service fees that apply regardless of payment method. B2Bpay's fee is a platform fee for the service, charged whichever way you pay.

Does the surcharge ban mean paying the ATO by card is now free?

For direct payments, yes, until the ATO stops taking cards after 30 June 2027. The trade-off is that most rewards cards earn reduced or no points on government payments, so a fee-free direct payment often earns little.

That is why many businesses weigh the direct route against paying through a platform. Through B2Bpay you pay a platform fee (from 1.10% ex GST for Visa and Mastercard on the Essential plan), but your card issuer sees a purchase from B2Bpay rather than a payment to a government agency, so you keep your full card points. On the Earn Plus and Earn Max plans you also earn B2B Points on top.

The fee is generally a business expense, shown on the tax statement you download from the B2Bpay portal. Confirm deductibility with your accountant. Our direct vs B2Bpay comparison walks through the maths for a typical BAS payment.

How can I keep paying BAS by credit card after the ATO ban?

Pay through B2Bpay. You pay B2Bpay by Visa, Mastercard or American Express, and B2Bpay pays the ATO on your behalf by bank transfer using your payment reference number. The ATO receives an ordinary electronic payment, so its decision to stop accepting cards does not affect you.

What you keep:

• Up to 55 days interest-free, depending on your card and statement cycle, while the ATO is paid on time.
• Your card's full reward points on the payment.
• B2B Points on Earn Plus (1 per $2) or Earn Max (1 per $1), convertible 1:1 to Qantas Points or Velocity Points.
• Automatic recording in Xero, MYOB or QuickBooks if you connect your accounting software.

Step-by-step instructions are in our guide to paying the ATO by credit card. You can also see the existing pay BAS by credit card page.

Key dates for businesses that pay tax by card

Three dates matter. Here they are in one place.

Dates can move, as the original 2026 cut-off did. The authoritative source is the ATO's payment options page.

What should I do before 30 June 2027?

Set up and test your alternative well before the deadline, so the change does not land in the middle of a BAS quarter.

1. Register for B2Bpay with your ABN at the B2Bpay sign-up page. There is no joining fee.
2. Add the ATO as a biller using the payment reference number from your BAS or notice of assessment.
3. Choose a plan. Essential if you only want card flexibility and your card's points, Earn Plus or Earn Max if you want B2B Points on top. You can change plan at any time.
4. Make a small test payment and check it appears on your ATO account. The ATO advises that electronic payments can take up to 4 business days to show, so pay early relative to the due date.
5. Connect Xero, MYOB or QuickBooks so the payment and fee are recorded automatically.

If you have questions, call 1300 205 575 or use the get started form. The team is Australian based.

Will the surcharge ban reduce credit card rewards?

Nobody can say for certain, but it is a reasonable concern. Banks earn less from merchant fees under the new rules, and some have already adjusted annual fees and benefits on rewards cards.

One way to protect your points balance is to earn a second layer of points that does not depend on your card's earn rate. B2B Points are awarded by B2Bpay on every eligible payment on the Earn Plus and Earn Max plans, regardless of what your card issuer does, and convert 1:1 to Qantas or Velocity Points, 2:1 to Avios or 1:2.5 to Luxury Escapes Société Points. See what a payment earns for worked examples.

Paying by bank account or PayTo through B2Bpay also earns B2B Points.