The Australian Taxation Office (ATO) has extended the timeframe for accepting credit card payments for tax debts until 30 June 2027, following an earlier announcement that the payment option would cease from 30 November 2026.
The Federal Government has confirmed it will provide transitional funding to allow the ATO to continue accepting credit card payments until the end of the financial year.
The extension is intended to provide additional time for consultation with small businesses and other taxpayers who currently rely on credit cards to meet their tax obligations, and to consider alternative payment arrangements.
What does this mean for businesses?
For many small businesses, credit cards provide flexibility in managing cash flow, particularly when meeting larger tax obligations such as quarterly Business Activity Statement (BAS) payments.
The proposed removal of this payment option could affect how some businesses manage their tax payments and short-term cash flow. For now, businesses can continue using credit cards to make eligible ATO payments until 30 June 2027.
Experts have predicted that implementation of the proposed change could have a significant impact on the viability of small businesses and the potential for a flow-on effect on unemployment.
What happens next?
The ATO is expected to undertake further consultation with affected taxpayers and industry representatives before the current extension expires. While the extension provides additional time, the longer-term arrangements for credit card payments remain uncertain.
Businesses that regularly use credit cards to meet their tax obligations may wish to review their cash flow planning and consider alternative payment methods ahead of any future changes.
We will continue to monitor developments and keep clients informed as further details become available. However, if cashflow management is a challenge for your business, we encourage you to contact us so we can support in getting it under control and be in position to plan for future tax obligations.
Worried about cashflow?
If you are concerned about managing the cashflow in your business, talk to our team for support.