Anne Aly maintains the ATO plan to stop accepting tax payments by card

The Australian Taxation Office (ATO) plans to stop accepting tax payments by credit card from 1 December 2026, following the ban on charging surcharges for card payments taking effect. Small Business Minister Anne Aly asked the ATO to maintain dialogue with businesses and find a way to address their concerns, but did not announce that the plan would be reversed.

Aly acknowledged that some small businesses value the flexibility of paying their tax obligations by card. She also noted that those affected will be able to use options such as the ATO’s payment plans, which allow a debt to be spread across instalments when the applicable requirements are met.

Ministers divided over the ATO’s response

Housing Minister Clare O’Neil also asked the tax office to speak with the sector again and seek a solution that works for businesses. By contrast, Assistant Minister Andrew Charlton supported the decision: he argued that if private businesses cannot pass surcharges on to their customers, public agencies should not do so either. He added that the ATO offers payment alternatives for those facing cash-flow difficulties.

Treasurer Jim Chalmers said the ATO had made the decision independently and that the Government had required it to establish a transition period to support businesses. He also said the Government remained in contact with the tax office. These statements do not amount to an announcement that the measure will be changed.

Businesses warn about cash flow; the ATO points to alternatives

Business groups and small-business representatives argue that losing the option to pay taxes by card could complicate cash-flow management, especially when tax bills coincide with expenses such as wages and rent. Andrew McKellar, chief executive of the Australian Chamber of Commerce and Industry, called for a signal of political leadership and said the ATO had not opened the decision to negotiation, although it was discussing aspects of its implementation and transition.

These are warnings about possible effects, not verified outcomes for businesses as a whole. The ATO and members of the Government have pointed to payment plans as an alternative. According to Aly, 2% of tax payments were made by credit card in the 2024–25 financial year; that proportion provides context on the use of this payment method, but does not measure how many businesses depend on it or the impact its removal would have in each case.

The change follows the ban on applying surcharges to card payments taking effect on 1 October 2026. The ATO explained that stopping the acceptance of cards is preferable to absorbing processing costs and passing them on indirectly to the community. Under the announced schedule, card payments will continue to be accepted until 30 November 2026.

For affected businesses, the immediate question is how the transition will be implemented and which options will be available according to their circumstances. For now, public positions remain divided: some ministers are calling for more dialogue, while Charlton supports the ATO’s decision and Aly has not announced a change of course.