TITLE: ATO Credit Card Payments Extended to 2027, 5% PAYG Instalment Factor Confirmed
ATO credit card payments continue until 30 June 2027
The ATO will continue accepting direct credit card payments for tax liabilities until 30 June 2027, extending the previously planned 30 November 2026 cut-off. The federal government has funded the transition period. The ATO had estimated that continuing the service could cost close to $200 million a year, while business groups are still seeking clarity on merchant fee relief. Read the ATO payment options and the extension announcement.
For quarterly BAS lodgers, the 28 April 2027 quarterly BAS is the last one due within the extended direct-card payment window. The June 2027 quarter BAS is due on 28 July, after direct ATO credit card payments end. After 30 June 2027, credit card payments will only be available through third-party payment providers, subject to their terms and fees.
Keep the payment change separate from the card surcharge rules. The surcharge ban took effect on 1 October 2026 and remains in force. It restricts businesses from passing covered card-payment costs on to customers; it does not itself end the ATO’s temporary acceptance of credit card payments. The timing and business impact were reported by Nine and the Australian Financial Review.
What to do: Review your business’s BAS payment process now. If you rely on card payments to manage cash flow, plan an alternative before the extension ends and check any processing fees before paying.
Check whether the 5% PAYG instalment factor applies to you
The ATO has confirmed a 5% GDP adjustment factor for relevant 2026–27 PAYG and GST instalments, up from 4%. It applies to eligible taxpayers using the instalment amount method who pay quarterly or twice yearly, for income years starting on or after 1 April 2026. It is not a blanket increase for every taxpayer or every tax liability. See the ATO’s 2026–27 GDP adjustment factor and PAYG instalment information.
If you have a substituted accounting period that began on 1 January, 1 February or 1 March 2026, the 4% factor continues to apply. The change also does not affect taxpayers using the rate method or paying annually.
If your actual business or investment income has fallen, you may be able to vary an instalment. Estimate your full-year tax position carefully before doing so. Varying too low can lead to an instalment penalty and general interest charge on a shortfall. The ATO explains how to vary PAYG instalments. Longer term, the ATO is also working on dynamic PAYG instalments as a potential simplification measure.
What to do: Compare your latest sales, expenses and profit forecast with the assumptions behind your instalment. Keep the working papers so you can explain a variation if required.
Keep reported income consistent as bank checks are explored
The ATO has confirmed it is exploring potential taxpayer-data sharing with banks as part of a wider response to AI-enabled financial fraud. Banks have been seeking ways to verify income on loan applications using ATO-held data. This remains at the discussion and scoping stage; no new business reporting obligation has been legislated. See The Mandarin’s report.
For business owners and sole traders, the practical step is straightforward: make sure the income and turnover figures you report to the ATO align with the figures you provide to lenders, insurers and platforms. Differences can have legitimate explanations, but clear records help you reconcile them.
Watch for an ATO ruling on whether an activity is a business
The ATO’s advice-under-development program lists a draft ruling, “Are you carrying on a business?”, for release in October 2026. The consultation timetable may change, so treat it as forthcoming guidance rather than a final ruling. Check the ATO’s advice-under-development list.
The distinction may matter if you earn income from online selling, a side hustle, gig work or content creation. Whether an activity is a business or a hobby can affect how income is treated and whether ABN, GST registration or BAS reporting obligations apply to you.
Keep records that show how you operate. A useful checklist includes:
- A business plan or records of your commercial goals.
- Relevant licences or registrations.
- A separate business bank account.
- Marketing activity and evidence of efforts to attract customers.
- Repetitive or regular sales and transactions.
- Consistent income, expense and BAS reporting where applicable.
Good records help you explain the business character of your activity and support accurate reporting.
October 2026 Australian tax and super checklist
Mark these dates whether your business operates in Sydney, Melbourne, Brisbane, Perth, Adelaide or regional Australia. Confirm your own obligations and any later due date with the ATO or registered tax agent.
- 21 October: Lodge and pay your September 2026 monthly BAS.
- 28 October: Standard due date for the July–September 2026 quarterly BAS. Eligible electronic lodgers and registered-agent clients may have later lodgment dates, so confirm the date that applies to you.
- Payday Super: The July–September quarter is a useful first full-quarter reconciliation point since Payday Super began on 1 July 2026. This is not a single quarterly deadline for the new regime: super contributions must reach each employee’s fund within seven business days of payday. Check the ATO’s Payday Super payment deadlines.
- 31 October: Lodge the 2026 income tax return for all entities if you are not using a registered tax agent. If you use a registered tax agent, you may have a later lodgment date — confirm it with your agent. This is also the due date for lodging and paying the Superannuation Guarantee Charge (SGC) statement for the July–September 2026 quarter if you have missed any super obligations.
Keep your business compliant through the transition
These changes land at different times and affect different taxpayers, so it helps to treat them separately rather than as one combined adjustment. Credit card payment acceptance runs to 30 June 2027, the 5% GDP factor applies from 1 April 2026 for eligible instalment method taxpayers, and any bank data-sharing arrangement is still at the scoping stage.
If you operate a growing SME, an online store or a side business, check your payment methods, review your PAYG instalment position, and keep clear records that back up the numbers you report. Speak with a registered tax agent if you are unsure how any of these apply to your situation.
