Clearing ATO tax debt as credit card payments end
Your options for paying the ATO once credit cards end, including payment plans and the real cost of paying late.
Free guideWhy it matters.
Plenty of business owners put the BAS or the income tax bill on a credit card. It buys a few extra weeks, it smooths out a tight month, and sometimes it earns points. For some, it has quietly become the plan for paying tax.
That option is ending. The ATO will stop accepting credit card payments after 30 June 2027. It first announced an end date of 30 November 2026, then extended the transition period. If your ATO payment plan is set to come out of a credit card, the ATO says you will need to switch to another payment method before then, or your instalments will fail and the plan may fall into arrears or default.
So the question is no longer just "how do I pay?" It is "where will the money come from when the bill lands?" Without the card as a buffer, a bill you haven't planned for turns into interest that builds every day, more stress about cash flow, and less room to choose how and when you pay.
What the guide covers.
After reading this guide, you'll know how to pay the ATO without a credit card and how to keep a tax bill from turning into an expensive debt.
- What is changing with credit card payments, and the dates that matter for your business
- How to choose between the ATO's other payment methods, and how long each takes to arrive
- How ATO payment plans work, who can set one up online, and what can make one default
- How to work out what paying late really costs, including the general interest charge
- The mistakes that leave a payment plan linked to a card that will stop working
- A checklist for building a tax reserve so the next bill is already covered
Don't leave it to chance.
Paying late costs money. The ATO charges the general interest charge (GIC), interest on tax paid after its due date, at 11.51% a year from 1 October 2026. It compounds daily, and it still builds while a debt is on a payment plan. GIC incurred from 1 July 2025 can't be claimed as a tax deduction.
Through our base compliance services, we keep your books and BAS up to date, estimate what you'll owe, and help you set money aside in a tax reserve ahead of each due date. If you already owe the ATO, we can talk to them for you, help you set up a payment plan you can keep, and make sure it doesn't depend on a credit card. Clarum clients can also use Sweep to set tax aside automatically.
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This page and the guide are general information only and don't consider your personal circumstances. Speak with us before acting on them.