ATO delays credit card payment ban until June 2027

• The Australian Taxation Office will delay its planned ban on credit card payments until June 30, 2027, following intense industry pushback.
• The federal government stepped in to provide transitional funding that will cover payment merchant fees for the tax agency through the current financial year.
• The delay gives tax officials additional time to consult with affected business owners and explore alternative support arrangements.

The Australian Taxation Office has postponed its decision to stop accepting credit card transactions until June 30, 2027, following pushback from commercial groups.

The change follows nationwide card surcharge rules introduced on Oct. 1 that require businesses to either absorb transaction fees or adjust their prices.

"This will provide more time for the ATO to engage with small businesses and other taxpayers who currently rely on credit cards, provide more detailed information to those affected, and consult on targeted options to support impacted taxpayers," said Treasurer Jim Chalmers.

The government confirmed it will provide interim funding to cover card merchant processing costs, with final budget figures slated for release in the upcoming mid-year economic and fiscal outlook report.

The decision allows thousands of small business operators to continue using credit card facilities for routine cash flow management.

Tax officials originally set a Nov. 30 deadline to cease card processing after merchant fees approached $200 million annually.