ATO to delay credit card payment ban

The Australian Taxation Office announced that it intended to prohibit the use of credit cards for paying tax liabilities. The measure was part of a broader effort to reduce the cost of credit‑card processing fees associated with tax payments.

Implementation of the ban was scheduled to take effect in the near term, with the ATO preparing to enforce the restriction across all tax accounts. The policy would have required businesses and individuals to use alternative payment methods such as direct bank transfers, BPAY or other electronic options.

Following the announcement, a number of small‑business owners expressed strong opposition, arguing that the restriction would limit their flexibility in managing cash flow and increase administrative burdens. The backlash was described as a revolt by the small‑business community, prompting the ATO to reconsider the timing of the policy.

In response to the concerns raised, the ATO confirmed that the planned ban would be delayed. No new implementation date has been provided, and the agency indicated that it would continue to consult with stakeholders before finalising any changes to the payment rules.