After 30 November 2026, the ATO will stop accepting credit cards. A business that paid a large BAS or tax bill by card, and cleared the card from customer receipts over the following weeks, now has to pay the ATO from its bank account on the due date.
For a business with an ATO bill of $250,000 or more and property it owns, a short-term private loan can do the job the card did. It pays the ATO in full on the due date and is repaid over a set term of months rather than weeks, at a size no card limit reaches.
What changes after 30 November 2026
The ATO announced the change on 1 October 2026: "Following the Reserve Bank of Australia's Review of Merchant Card Payment Costs and Surcharging, the ATO will stop accepting credit cards as a payment method after 30 November 2026." Its reason: "As a government agency, the ATO has decided it would not be appropriate for the cost of credit card merchant fees to be transferred to the community."
Other ways to pay remain, including a debit card and a direct debit from a bank account. The full list is at ato.gov.au/howtopay.
A payment plan linked to a credit card has to change before its next instalment. The ATO says: "Credit card payments after 30 November 2026 will be unsuccessful and the status of your payment plan may move into arrears or default." It also warns that "Cut-off dates apply to changing to another payment method."
The first BAS payments affected are:
| You report | First BAS due after the change |
|---|---|
| Monthly (required once GST turnover is $20 million or more) | The November 2026 BAS, due 21 December 2026 |
| Quarterly | The October to December 2026 BAS, due 28 February 2027. That is a Sunday, so it can be paid on Monday 1 March 2027 without penalty. The ATO gives no extra time on this quarter, because the due date already includes a one-month extension |
What the card was doing for a large ATO bill
A credit card did not add money to the business. It moved the date the cash left the bank account by several weeks, depending on the card, so the bill could be paid on the due date and the card cleared from the receipts that came in afterwards.
That mattered most for larger businesses. The ATO's note on the change says "Approximately 2.3% of tax payments were made with credit cards in 2024–25, with more than 60% of card payments being made by privately owned and wealthy groups and public and multinational businesses."
For a bill of several hundred thousand dollars, the card was also limited by its credit limit. Once the card is gone, the replacement has to do two things: pay the full amount on the due date, and give the business time to collect the receipts that pay it back.
How a private loan replaces the card
A short-term private loan pays the ATO in full on the due date. The business then repays the loan over a set term, from the same receipts the card used to wait for, from the sale of an asset, or from a refinance to its bank.
- •Size: $250,000 to $10,000,000, so the loan can cover the whole ATO bill, or several ATO amounts falling due together, in one payment.
- •Term: 1 to 24 months, typically 3 to 6 months, which covers one or two BAS quarters rather than becoming a permanent facility.
- •Security: a first or second mortgage over residential, commercial or industrial property owned by the business or a director, up to a maximum LVR of 70%. For a second mortgage, that 70% is the first and second mortgages combined.
- •Repayment: the receipts, an asset sale or a bank refinance, named at the start.
We provide secured loans backed by real property, so we need three facts to assess one:
- •The ATO amount and its due date, or the next payment plan instalment date.
- •The property that would back the loan, its estimated value and any existing loan on it.
- •How the loan will be repaid, and roughly when.
In one Melbourne loan, a $500,000 second mortgage over a commercial suite and an investment property owned by the directors repaid an ATO debt for a business at risk of being wound up.
Paying out a payment plan linked to a card
If the business already has an ATO payment plan paid by credit card, a private loan can pay out the plan balance in one payment before the first instalment due after 30 November. There is then no plan left to move into arrears or default.
Paying the balance in full also stops the ATO's general interest charge on that balance. If an instalment has already been missed, or the ATO has issued a director penalty notice or a garnishee notice, see paying an urgent ATO debt.
How fast it can be arranged
A BAS due date and a payment plan instalment date are fixed, so the loan has to be in place before them. We decide in hours, issue a letter of offer as soon as terms are agreed, and can settle within 24 hours. Our in-house valuation team values the property, so there is no wait for a panel valuer.
Work back from the date. For a monthly reporter, the November BAS is due 21 December 2026. For a quarterly reporter, the October to December BAS is due 28 February 2027, a Sunday, so payment can be made on Monday 1 March without penalty.
Send us the ATO amount and due date, the property and its estimated value, and how the loan will be repaid, or call 1300 795 175 for an answer on the day. See how our tax debt loans work.
The interest rates side by side
The ATO's general interest charge (GIC) is 11.51% a year for October to December 2026, calculated daily on a compounding basis, and GIC incurred on or after 1 July 2025 cannot be claimed as a tax deduction. The ATO reviews the rate every quarter. Our tax debt loans start from 9.7% p.a. Ask for the full offer in writing, with every cost, before you compare.
The ATO itself suggests talking to a tax professional, and says "Their advice may include a business loan, as some interest on loans connected with running a business may be eligible for a tax deduction." Whether that applies to your business is a question for your accountant. We are a lender, and we do not give tax advice.
FAQ
When does the ATO stop accepting credit cards?
The ATO will stop accepting credit cards after 30 November 2026. A payment plan paid by credit card has to move to another payment method before its next instalment due after that date, or the payment will fail.
Can I still pay the ATO by debit card or direct debit?
Yes. The change applies to credit cards only. The ATO lists switching a payment plan to a debit card, or to a direct debit from a bank account, as ways to keep paying. The full list of payment methods is at ato.gov.au/howtopay.
What happens if a payment plan instalment fails after 30 November?
The ATO says the plan "may move into arrears or default". It may first send an arrears letter, which the ATO describes as "an opportunity to bring your payment plan back on track before your payment plan defaults". A private loan can pay out the plan balance in full, so there are no further instalments to miss.
Can a private loan pay my BAS on the due date?
Yes. We decide in hours and can settle within 24 hours once terms are agreed, so a loan can be in place before the due date. The loan is secured by a first or second mortgage over property owned by the business or a director, and starts at $250,000.
Can a private loan pay out my whole ATO payment plan?
Yes. A loan can pay the plan balance in full in one payment, which closes the plan before the first card instalment would fail. The loan is then repaid over its own term of 1 to 24 months.
Can one loan cover my BAS, company tax and an existing payment plan together?
Yes. Our loans run from $250,000 to $10,000,000, so one loan can pay several ATO amounts in a single payment. The business then has one loan with one repayment date, instead of separate amounts falling due to the ATO.
What property can back the loan?
Our loans are backed by residential, commercial or industrial property owned by the business or a director, including property already held in a company or a trust. The loan can be a first mortgage, or a second mortgage behind an existing loan, up to a maximum LVR of 70% across both.
How is the loan repaid?
The loan is repaid at the end of its term, which runs from 1 to 24 months and is typically 3 to 6. It can be repaid from the customer receipts that used to clear the credit card, from the sale of an asset, or by refinancing to your bank. We look at how the loan will be repaid as part of assessing it.
