9 October 2026Credit card payments to the tax office will stay available after the government agreed to cover the processing costs.
Featured image: A card payment terminal. Photo: Syced, CC0, via Wikimedia Commons.
Key facts
- The ATO had planned to stop accepting credit cards in December.
- The government will cover processing costs until the end of June next year.
- Card fees cost taxpayers around $200 million a year.
- The reversal followed a backlash from small businesses.
The reversal
Treasurer Jim Chalmers said the government will cover the cost of processing credit card payments so that taxpayers can keep paying the Australian Taxation Office by card until the end of June next year. The ATO had planned to end card payments in December.
Chalmers said the government took the feedback from small businesses very seriously.
Why the ban was planned
SBS reported that processing fees on card payments to the ATO cost taxpayers around $200 million a year, which was the reason for the planned change.
Timing
Reports on the day differed slightly. A midday bulletin said the ATO would no longer proceed with the ban and that the Treasurer was expected to announce funding for a year-long transition, while the evening bulletin reported the announcement as made.
