Senator Pauline Hanson has called on the Australian Taxation Office to reverse its decision to stop accepting credit card payments for tax obligations after 30 November 2026.
In a media release issued on 2 October, Hanson said the change would remove a payment option that some small businesses use to manage cash flow while meeting their tax obligations. She argued that the timing was particularly significant because new rules preventing card payment surcharges came into effect on 1 October.
The ATO announced the credit card change on 1 October. It said that, as a government agency, it did not consider it appropriate for the cost of credit card merchant fees to be transferred to the community. The ATO said around 2.3 per cent of tax payments were made by credit card in 2024–25, and acknowledged that some taxpayers rely on credit cards when managing their tax payments.
What the ATO is changing
From after 30 November, taxpayers will need to use another payment method for tax obligations where they previously used a credit card. The ATO has identified alternatives including direct deposit, direct debit from a debit card or Australian bank account, Government EasyPay, Australia Post, mail and international money transfer services.
The ATO has also said it is contacting taxpayers whose payment plans are linked to credit cards so they can update their payment arrangements before their next instalment due after the deadline.
Why the change is being criticised
Hanson’s criticism centres on the effect the change could have on businesses that use credit to manage short-term cash flow. She has called for the ATO to reverse the decision and has argued that businesses are facing a different treatment from government agencies following the removal of card surcharges.
Those comments are part of Hanson’s response to the policy and are not an assessment by the ATO or the Reserve Bank of Australia.
The issue is connected to wider changes to card payments that began on 1 October. The Reserve Bank says no-surcharge rules have been introduced for eftpos, Mastercard and Visa, while other major payment networks have also announced changes. The RBA says businesses will still incur costs for accepting cards, but those costs can be reflected in overall prices rather than charged as a separate card surcharge.
Australia By Aussie previously reported on the broader changes in Card surcharges end in October: what Australians need to know.
What happens next
The ATO’s 30 November deadline remains in place. Taxpayers who currently use credit cards to pay tax will need to arrange an alternative payment method before their next relevant payment after the deadline.
The political response is now focused on whether the ATO should reconsider the decision, particularly for taxpayers who say credit card payments form part of their cash-flow management. No reversal has been announced.
Source: Senator Pauline Hanson’s 2 October 2026 media release; Australian Taxation Office information reported by Accountants Daily; Reserve Bank of Australia guidance on the removal of card payment surcharges.
