The Australian Taxation Office (ATO) has announced that it will stop accepting credit-card payments after 30 November 2026.
The change affects individuals and businesses that currently use a credit card to pay tax liabilities or make instalments under an ATO payment plan.
Why is the ATO making this change?
The announcement follows broader changes to merchant card payment costs and surcharging in Australia. The ATO has stated that, as a government agency, it does not consider it appropriate to transfer credit-card merchant fees to the wider community.
What will change?
From 1 December 2026, credit cards will no longer be accepted for direct payments to the ATO.
Other payment methods will remain available, including BPAY, direct debit and electronic funds transfer (EFT). Debit-card payments will also continue to be available, subject to the ATO’s payment-channel requirements.
The ATO’s How to pay guidance provides information on the payment methods currently available.
If you have an ATO payment plan linked to a credit card, you may need to update your payment method before your next instalment due after 30 November. The ATO has said it is contacting affected taxpayers directly about the change.
Important date: 30 November 2026 is the final day on which the ATO will accept direct credit-card payments.
This change does not alter the due dates for tax liabilities or payment-plan instalments.
Updates for individuals
Proposed standard deduction for work-related expenses
The Government’s proposed standard deduction of up to $1,000 for work-related expenses is intended to apply from the 2026–27 income year.
The proposal would allow eligible Australian tax residents with assessable labour income to claim a standard deduction without needing to substantiate the amount in the same way as individual work-related expense claims. Taxpayers with more than $1,000 of eligible work-related expenses would continue to have access to the existing deduction arrangements, subject to the relevant requirements.
The ATO has also released draft guidance for consultation, with comments closing on 9 October 2026.
The proposed change does not apply to 2025–26 tax returns. Individuals preparing their 2026 tax return should continue to apply the existing deduction rules and retain the records required to substantiate their claims.
For further information, see the ATO’s guidance on the proposed $1,000 standard deduction.
Updated rental-property ruling
The ATO’s Taxation Ruling TR 2026/1 explains how rental-property income and deductions apply to individuals who are not carrying on a rental-property business.
The ruling covers a range of common situations, including:
- Properties used partly for private purposes or made available for rent for only part of the year
- Holiday homes and whether a property is genuinely available for rent
- Apportioning expenses where a property is rented below market rates or to family and friends
- The treatment of rental income, reimbursements and other receipts connected with the property
The ruling reinforces that deductions should reflect the property’s genuine income-producing use. Where a property is used privately or is not genuinely available for income-producing purposes, expenses may need to be apportioned.
You can read the ATO’s Taxation Ruling TR 2026/1.
ASIC Update
Are you meeting your responsibilities as a company director?
ASIC has launched its Small Business Director Essentials hub, bringing together practical guidance, learning modules and tools for directors.
The resources cover the company lifecycle, from establishing and operating a company through to dealing with financial difficulty, restructuring and closing a business. The ASIC Small Business Director Essentials hub provides practical guidance for directors at each stage.
ASIC’s message is clear: appointing an accountant, bookkeeper or registered agent does not transfer a director’s legal responsibilities. Directors must understand their company’s financial position, remain involved in decision-making and ensure the company meets its legal obligations.
A director’s practical compliance checklist
Directors should regularly:
- Understand the company’s financial position and review financial information.
- Keep company records, registers and ASIC details accurate and up to date.
- Review the company’s ASIC annual statement, pay the annual review fee on time and complete the required solvency resolution.
- Report changes to directors, addresses, officeholders or shareholdings within the applicable statutory timeframes.
- Ensure each director has a Director ID and uses the same identifier for all director appointments.
- Avoid insolvent trading by not allowing the company to incur debts where there are reasonable grounds to suspect it cannot pay them when they fall due.
- Act early when financial pressure arises, particularly where the company is struggling to meet tax, superannuation, supplier or other obligations.
ASIC’s guidance emphasises that directors cannot simply rely on advisers to take responsibility for these obligations. Directors need to stay informed, ask questions and make appropriate decisions about their company.
Important information: This update provides general information only and does not constitute financial, taxation or legal advice. You should consider your individual circumstances and seek appropriate professional advice where required.