ATO Ends Credit Card Payments Amid Australia Surcharge Ban

The Australian Taxation Office (ATO) will stop accepting credit card payments after November 30, 2026. The agency removed the payment method to avoid transferring credit card merchant fees to the community following a national ban on credit and debit card payment surcharges that took effect on October 1.

The surcharge ban, confirmed by the Reserve Bank of Australia in March, is estimated to save consumers 1.6 billion dollars annually. While major networks like Visa and Mastercard have implemented the rule, business lobby groups warn that small businesses and migrant-run shops may be ill-prepared for the change. Additionally, the Department of Foreign Affairs and Trade warned travelers that complimentary credit card insurance may have been reduced or removed as banks lower rewards due to interchange fee caps.

Skye Cappuccio, CEO of the Council of Small Business Organisations Australia, warned that the ATO's decision increases cash flow pressure for small businesses already managing tight margins. While noting that only a small number of businesses are expected to be affected, Cappuccio urged the ATO to remain flexible during the transition, especially for those using credit cards for payment plan obligations, and called for the accelerated implementation of New Payments Platform options.