If you're one of the business owners who uses a credit card to pay your BAS, PAYG, or income tax, you'll want to pay close attention. The ATO has announced it will stop accepting credit card payments after 30 November 2026.

This change might not affect everyone, but if you've ever used a credit card to smooth out cash flow around BAS time, or if you have an ATO payment plan linked to a card, this matters a great deal. The clock is already ticking.

If you have an ATO payment plan with instalments drawn from a credit card, you must change your payment method before your next instalment due after 30 November 2026. If you don't, the payment will fail, and the ATO has said your plan may fall into arrears or default. A defaulted plan can mean the full debt becomes payable, plus additional interest and potentially stronger recovery action.

The ATO is writing to affected taxpayers, but please don't wait for the letter. Cut-off dates apply to changing your payment method, so check now.

Here's the honest truth: if your business needs a credit card to pay its tax, the card isn't the problem. It's a symptom of a deeper cash flow issue. GST and PAYG withholding aren't really your money; they're amounts you collect for the ATO. When those funds get absorbed into day-to-day running costs, BAS time becomes a scramble.

It's also worth remembering that since 1 July 2025, the general interest charge (GIC) on ATO debts is no longer tax-deductible. Carrying a tax debt has become genuinely expensive, which makes getting ahead of your obligations critical.

Instead of just finding a new way to pay, use this as an opportunity to get ahead of your tax obligations. Consider opening a dedicated tax account where you regularly set aside GST and PAYG. It's a simple habit that removes most BAS-time stress. If you have an ATO payment plan linked to a credit card, please check it now and switch your payment method well before 30 November 2026. We're here to help you navigate these changes and keep your cash flow healthy.

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If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. To book an appointment, use our online booking system, give us a call on 07 3289 1700, or email us at reception@rgaaccounting.com.au.We look forward to assisting you this tax season!

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.