ATO bans credit card tax payments from November

• The Australian Taxation Office will stop accepting credit card payments starting Nov. 30.
• The change impacts approximately 2.3% of all tax payments processed by the agency.
• The government stated the move aligns with broader surcharge reforms aimed at saving consumers $1.6 billion annually.

The Australian Taxation Office will ban all credit card payments starting Nov. 30, affecting roughly 2.3% of total tax payments.

This decision follows the government's broader ban on passing credit card surcharge fees onto customers, a policy designed to save Australians $1.6 billion each year across everyday purchases and bills.

"It would not be appropriate for the cost of credit card merchant fees to be transferred to the community," said the ATO in an official statement.

To settle outstanding obligations, taxpayers must switch to alternative methods such as direct debit, BPAY, cash, or EFTPOS at an Australia Post office.

The agency stated it remains committed to helping affected taxpayers transition to these alternative methods while continuing support for those experiencing financial hardship.

The federal government introduced the card surcharge ban to eliminate hidden transaction fees for consumers at supermarkets, cafes, and service providers.

Critics and industry groups express concern that businesses facing unabsorbed merchant fees may raise retail prices across the board to cover operational costs.