UPDATE: Our report prompted City of Moreton Bay business owners to speak out about the wider pressures on cash flow, costs and business growth. Read what local businesses told Moreton Daily Business.
City of Moreton Bay businesses that rely on credit cards to manage tax payments will need to rethink their cash flow arrangements, with the Australian Taxation Office confirming it will stop accepting credit cards after 30 November 2026.
The ATO said the decision followed the Reserve Bank of Australia’s Review of Merchant Card Payment Costs and Surcharging.
“As a government agency, the ATO has decided it would not be appropriate for the cost of credit card merchant fees to be transferred to the community,” the ATO said.
The decision removes a payment option that some businesses use to manage the timing of tax liabilities and cash leaving their accounts.
The ATO acknowledged the change could require taxpayers who rely on credit cards to adjust their arrangements.
“The ATO recognises that some taxpayers currently rely on credit card payments to manage their tax payments and understands this change may require some adjustments,” the ATO said.
“The ATO is committed to helping taxpayers transition to alternative payment methods and will continue to support those experiencing financial hardship or other circumstances that make it difficult to meet their obligations.”
Businesses with ATO payment plans linked to credit cards will also need to act before the change takes effect.
The ATO said it was writing directly to affected taxpayers to explain the changes and steps they need to take.
Taxpayers with a direct debit arrangement linked to a credit card will need to update their payment method before their next instalment due after 30 November 2026 to ensure they remain compliant with their payment plan.
Detailed information on how to change the payment method linked to a payment plan is available through the ATO’s Managing your payment plan guidance.
ATO figures show about 2.3 per cent of tax payments were made by credit card in 2024-25, with more than 60 per cent of card payments made by privately owned and wealthy groups, and public and multinational businesses.
Alternative payment options will remain available through the ATO.
For affected City of Moreton Bay businesses, the change is more than an administrative switch. Businesses that have used credit cards to manage the timing of tax payments now have two months to review how they will meet those obligations once the ATO removes the option.
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