The Australian government has delayed the Tax Office’s ban on credit-card payments until the end of June 2027, after a backlash from small business.
The ATO had planned to stop taking credit cards after 30 November. It said a ban on card surcharges would otherwise leave it absorbing about $200 million a year in acceptance fees, a cost it did not want to push onto the public. Other ways of paying were to stay open. Businesses with a payment plan tied to a card were told those payments would fail after the cutoff.
Treasurer Jim Chalmers stepped in on Friday, with Small Business Minister Anne Aly and Assistant Treasurer Daniel Mulino. The government will fund the office to keep taking cards through the rest of the financial year. “We’ve stepped in to ensure that the tax office can take credit card payments until the end of June next year,” Chalmers said. The two months originally allowed, he said, were not enough time to consult small business and get the change right.
The delay is not a reversal. The ban is still the plan. The opposition is preparing legislation to block it outright. The change does not stop other businesses, such as childcare centres, from refusing cards on their own.
Sources: Sydney Morning Herald, AFR, news.com.au, 9 October 2026