What is changing, and when
| Date | What happens |
|---|---|
| 1 October 2026 | Reserve Bank card surcharge ban starts. Mastercard, Visa and EFTPOS payments can no longer be surcharged. |
| Until 30 November 2026 | You can still pay tax and BAS by credit card through the ATO. |
| From 1 December 2026 | The ATO stops accepting credit card payments for tax and BAS. Pay by BPAY, direct debit or bank transfer instead. |
Only around 2.3% of tax payments were made by credit card in 2024-25, so most businesses are unaffected in how they pay. The change matters most to the businesses that deliberately used a credit card at BAS time, either to earn points or to use the card's interest-free period as a short cash-flow float.
The ramifications for small business
- No more card float. If you leaned on the roughly 30 to 55 interest-free days on a card to bridge the gap until the money came in, that option disappears for tax and BAS from 1 December.
- No more points on tax. Paying a large BAS by card to earn rewards is no longer possible.
- The real issue is exposed, not created. Using a card to pay the BAS was usually a sign the GST and PAYG had already been spent. Removing the card just surfaces that earlier. The fix is to stop spending the tax portion in the first place.
How to plan for it
- Separate the tax money as you go. Move your GST and PAYG withholding into a separate account every time you are paid, so the BAS money is already sitting there when it is due. This is the single change that removes the problem.
- Switch your payment method now. Set up BPAY or a direct debit before 1 December so the first post-card BAS is not a scramble. Use your payment reference number (PRN) from the BAS.
- Know the due dates. Pair the cash plan with the BAS due dates for 2026-27 so nothing is a surprise.
- If cash is genuinely tight, use a payment plan. The ATO offers payment plans for small business. That is a far cheaper way to manage a shortfall than credit card interest ever was. Speak to your accountant before using any finance facility to cover tax.
This is a cash-flow and process change more than a tax one, which is squarely a bookkeeping job. If you want the tax money quarantined automatically and your BAS payments set up the new way, that is what we do. Book a free call.
General information only, current as at October 2026, not financial or tax advice. Sources: Australian Taxation Office and the Reserve Bank of Australia. Confirm the current payment options with the ATO.