TITLE: Australia’s October 2026 Compliance Changes: Card Surcharges, ATO Payments, Tax Transparency and Foreign Resident CGT
Australia’s October Compliance Changes at a Glance
Australia enters October with several important compliance changes for ecommerce sellers, digital businesses, employers and international groups.
From today, card surcharges are no longer permitted across major card networks. The ATO will stop accepting credit card payments after 30 November. New foreign resident capital gains tax rules also begin, while the latest Corporate Tax Transparency Report shows stronger compliance among large businesses.
Use this checklist to understand what your Australian business needs to do next.
Remove card surcharges before they create payment disputes
From 1 October 2026, eftpos, Mastercard and Visa have introduced no-surcharge rules covering credit, debit and prepaid card payments. American Express and UnionPay have also removed surcharging, while PayPal’s rule begins on 5 October 2026.
The Reserve Bank of Australia estimates that Australians could save approximately $1.6 billion each year, largely through the removal of hidden payment surcharges.
The rules apply when a fee is added specifically because a customer chooses to pay by card. They do not automatically prohibit:
- Weekend surcharges.
- Public holiday surcharges.
- Booking fees.
- Service fees.
- Fees that apply regardless of the payment method.
However, your pricing must remain clear and accurate. The ACCC card surcharge guidance explains that the ACCC does not enforce card network rules. Enforcement of those network rules sits with the relevant card networks and payment service providers. The ACCC continues to enforce misleading pricing and excessive-surcharge rules for payment methods that remain covered by its guidance.
Complete this payment-system checklist today
- Remove card surcharge settings from physical terminals.
- Check online checkout settings in Shopify and WooCommerce.
- Review payment configurations connected to Amazon, eBay, TikTok Shop and Etsy.
- Confirm the change with your payment service provider.
- Update customer-facing price displays and checkout wording.
- Reconcile merchant fees as payment-processing expenses rather than separate card-surcharge income.
- Review your pricing model so card acceptance costs are reflected in overall prices where appropriate.
You do not necessarily have to absorb every cost. Businesses can reflect payment costs in their general pricing instead of adding a separate card fee. Some small businesses may also encourage cash, PayID or bank transfer payments, provided pricing remains transparent and customers are not misled.
The RBA’s official FAQ confirms that a card payment made on or after 1 October may not be surcharged, even if the invoice was issued earlier.
Prepare your cash flow before the ATO credit card cut-off
The ATO will stop accepting credit card payments after 30 November 2026.
The ATO says it is not appropriate for credit card merchant fees to be passed to the community. Only approximately 2.3% of tax payments were made by credit card during 2024–25, but more than 60% of those payments came from privately owned and wealthy groups, public companies and multinational businesses.
This change matters if your business uses a credit card to manage GST, BAS, income tax, PAYG withholding or payment-plan instalments.
Protect your payment plan
If you have a payment plan connected to a credit card or a direct debit arrangement linked to a credit card, update the payment method before the next instalment due after 30 November.
Review the ATO’s guidance on:
Build the replacement payment method into your cash-flow forecast now. This will help you avoid a failed instalment, payment-plan disruption or unnecessary contact with the ATO in December.
Taxpayers who need help can contact the ATO on 13 11 42 during business hours or speak with their registered tax professional.
Treat the Corporate Tax Transparency Report as a compliance signal
The ATO published its 2024–25 Corporate Tax Transparency Report today. It covers 4,299 corporate entities that paid a combined $87.5 billion in corporate income tax.
The entities included:
- 1,824 foreign-owned companies with income of $100 million or more.
- 593 Australian public entities with income of $100 million or more.
- 1,882 Australian-owned resident private companies with income of $100 million or more.
The proportion of large corporates reporting no income tax fell to 27%, representing 1,149 entities. This is the lowest proportion since Corporate Tax Transparency reporting began.
The report also records:
- $10.6 billion in corporate tax paid by the oil and gas segment.
- PRRT payable increasing from $1.48 billion to $1.87 billion.
- A record 21 PRRT payers.
- More than $36 billion in additional revenue secured by the Tax Avoidance Taskforce since 2016.
- 94.3% of large business tax paid voluntarily, increasing to 96.3% after compliance action.
The ATO is also scrutinising data-centre and AI-driven business models, including related-party arrangements and profit-shifting risks. Its position is that Australian data centres can be fundamental and valuable parts of a business, rather than merely low-value service providers.
For growing digital businesses in Sydney, Melbourne, Perth and Queensland, this reinforces the value of accurate intercompany records, service agreements, revenue reporting and transaction-level bookkeeping.
Read the ATO Corporate Tax Transparency Report 2024–25.
Review foreign resident CGT exposure from today
The strengthened foreign resident CGT regime applies from 1 October 2026.
The changes include:
- A new Commonwealth definition of real property covering land, rights and interests over land, assets fixed to land, and leases or licences over those assets.
- A principal asset test based on a 365-day testing period, replacing the previous point-in-time approach.
- A requirement for foreign vendors involved in disposals valued at $50 million or more to notify the ATO using a new form when providing a non-IARP declaration.
- A requirement for purchasers to consider whether they reasonably believe a vendor declaration is false.
- A temporary 50% CGT discount for eligible non-individual foreign residents disposing of certain renewable energy assets.
The measure does not apply retrospectively to disposals that had already settled before commencement.
This is relevant to non-resident owners and international groups with Australian trading structures, business assets or interests connected with Australi
