On 9 October 2026, the ATO announced an extension of the transition period allowing taxpayers to use credit cards for tax payments until 30 June 2027. This decision follows industry feedback and aims to provide continued flexibility while the ATO modernises its payment infrastructure. The extension applies to all tax obligations, including income tax, GST, and superannuation guarantee charge payments. Taxpayers should note that credit card payments incur a merchant service fee, which is not tax‑deductible.
Key Takeaways
- Extended Deadline: The previous transition end date of 31 December 2026 has been pushed to 30 June 2027, giving businesses and individuals more time to adopt alternative payment methods such as BPAY, direct debit, or the ATO’s online services.
- Fee Implications: The merchant service fee (typically 0.5%–1.5%) remains payable by the taxpayer. The ATO advises considering lower‑cost payment options to avoid unnecessary costs.
- Modernisation Context: The extension aligns with the ATO’s Modernising Tax Administration Systems (MTAS) program, which will eventually phase out credit card payments in favour of real‑time, lower‑cost digital payment rails.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement