The ATO No Longer Takes Credit Cards: What It Means for Business Finance

Short answer: from 1 December 2026 the ATO no longer accepts credit cards, so businesses that used a card to push tax bills back will feel more cash-flow pressure. For anyone applying for business vehicle or equipment finance, that matters: lenders look closely at your ATO position, and an overdue tax debt with no arrangement in place can slow or stop an application.

What's changed

• Credit cards accepted until 30 November 2026 only. After that, tax has to be paid by BPAY, direct deposit, direct debit from a bank account, Government EasyPay or at Australia Post.
• Payment plans paid by credit card must be switched to another method before the first instalment due after 30 November 2026.
• Card surcharges were scrapped from 1 October 2026 following the Reserve Bank's review of card payment costs.

Why it matters for business finance applications

Paying tax on a credit card gave some businesses up to a couple of months of breathing room before the money actually left the account. Without it, a large BAS or income tax payment comes straight out of operating cash, or turns into an ATO debt. Both show up when a lender assesses you.

• Bank statements: lenders read your business statements for cash flow. A big tax payment that drains the account, or a pattern of overdrawn days, can raise questions about repayments.
• ATO debt: most business lenders ask whether you owe the ATO. Many will still lend if the debt is on a payment plan you're keeping to. An overdue debt with no arrangement is a common reason applications stall.
• Credit file: the ATO can report business tax debts of $100,000 or more that are more than 90 days overdue to credit reporting bureaus if the business isn't engaging with it. That's visible to lenders.
• Low doc applications: these lean on BAS and bank statements instead of full financials, so lodging BAS on time and showing tax is under control carries even more weight.

The cost of letting tax run late

The general interest charge on overdue tax is 11.51% a year for October to December 2026, calculated daily. Since 1 July 2025, GIC is no longer tax deductible, which makes an unpaid tax bill more expensive in real terms than it used to be.

Practical steps before you apply for vehicle or equipment finance

1. Check your ATO account in online services and download a current statement. Lenders often ask for one.
2. Put any debt on a payment plan and keep to it. Plans for business debts under $200,000 can often be set up online.
3. Switch any card-funded payment plan to a bank account before your first instalment after 30 November 2026.
4. Keep BAS lodgements up to date. Late lodgement is a red flag even if nothing is owed.
5. Plan for tax in your cash flow. Setting GST and PAYG aside in a separate account makes your statements look stronger to lenders.
6. Talk to your accountant before borrowing to cover tax, so you understand the costs and the tax treatment.

If you need funding to cover a tax bill

Some businesses use an overdraft, line of credit or short-term business loan to cover a tax bill instead of a credit card. Each has different costs and conditions. Our guide to business tax bill and cash flow finance compares the main options.

Related guides

• How BAS statements affect car loan approval
• Documents needed for ABN car finance
• How GST affects car finance for businesses
• Equipment finance

General information only. This isn't financial or tax advice. Finance the Ride is a referral service and doesn't hold an Australian Credit Licence. Sources: ATO, Reserve Bank of Australia. Last reviewed October 2026.