Daily Australia Tax Update: 5 October 2026. ATO Caps Phone Interest Remissions, $1,000 Standard Deduction Consultation Closes Friday & AI Transfer Pricing Scrutiny Ramps Up

TITLE: ATO Deadlines: Credit Card Ban, GIC Remissions and $1,000 Deduction

Key dates for Australian businesses

• 9 October 2026: Consultation closes on LCR 2026/D5, covering the proposed standard deduction of up to $1,000 for eligible work-related expenses from 2026–27.
• 16 October 2026: Consultation closes on TR 2026/D1 covering crypto asset airdrops, and GSTR 2012/3DC covering the GST treatment of retirement village care services and accommodation.
• 31 October 2026: ATO deadline for tax agents to add new clients to their lodgment program lists and lodge overdue prior-year returns where relevant.
• 31 October 2026: Formal self-lodger tax return deadline. Because the date falls on a Saturday, Monday, 2 November 2026 may apply under the general weekend rule for ordinary self-lodgment.
• 30 November 2026: The ATO’s credit card payment ban is scheduled to begin. Businesses should transition to BPAY, direct debit or another available payment method.

Australian businesses face several important tax administration deadlines this week. The ATO is changing how it handles phone-based general interest charge remissions, public consultation on the proposed $1,000 standard deduction closes on 9 October, and technology businesses face increased scrutiny of software royalties, transfer pricing and offshore profit allocation.

The ATO has also confirmed that credit card payments will no longer be accepted after 30 November 2026. This matters for Australian e-commerce sellers, digital businesses and SMEs managing GST, BAS payments and tax debts.

Here is what you need to know as at Monday, 5 October 2026.

1. ATO credit card payment ban requires a payment process change

The ATO Commissioner has defended the decision to stop accepting credit card payments from 30 November 2026. The change follows the removal of card surcharges for Commonwealth agencies and the ATO’s concern about continuing merchant processing costs.

The ATO is encouraging taxpayers to use alternatives such as:

• BPAY
• Direct debit
• Electronic funds transfer
• Other available debit or account-based payment options

This is relevant if you regularly pay BAS liabilities, GST, PAYG instalments, income tax or other ATO debts by credit card. It may also affect businesses that use credit cards to manage short-term cash flow or collect rewards points.

Take action before 30 November

Update your internal payment checklist now. Record the following:

1. Which ATO obligations are paid by credit card.
2. The usual payment dates for BAS, GST, PAYG and income tax.
3. Which bank account will be used after the change.
4. Who is authorised to approve payments.
5. Whether direct debit or BPAY details need to be set up in advance.

Do not wait until the next BAS deadline. Updating your process early will reduce the risk of a missed payment, late payment interest or an avoidable cash-flow disruption.

2. Phone-based GIC remissions are now limited

The ATO has capped the level of general interest charge remission that can be granted over the phone. Larger or more complex requests will be escalated to specialist officers rather than resolved during a standard call.

A general interest charge can arise when an ATO liability remains unpaid after its due date. It may continue to accrue daily while the debt remains outstanding. A remission is not automatic. You must explain the circumstances and provide relevant evidence.

Prepare a complete remission record

If your business needs to request a remission, prepare the file before contacting the ATO. Include:

• The original liability and due date.
• The reason the payment or lodgment was delayed.
• Details of any system failure, illness, disaster or ATO-related delay.
• Evidence supporting the circumstances.
• The date the error was corrected.
• Proof of payment or details of an agreed payment arrangement.
• A clear explanation of why the requested remission is reasonable.

Larger requests should be prepared in writing because they may be referred to a specialist team. Keep paying undisputed amounts where possible. Interest can continue to accrue on unpaid balances, including debts under a payment arrangement.

For Australian businesses, accurate bookkeeping and timely BAS preparation remain the best way to prevent avoidable GIC exposure.

3. $1,000 standard deduction consultation closes on 9 October

The ATO’s public consultation on LCR 2026/D5 closes this Friday, 9 October 2026. The draft ruling explains how the proposed standard deduction for work-related expenses would operate from the 2026–27 income year.

Under the proposal, eligible individuals with assessable labour income may receive a standard deduction of up to $1,000. The deduction would apply automatically and would not require the taxpayer to have incurred or substantiated specific work-related expenses.

However, this is primarily an individual tax return measure. It is not a general $1,000 deduction for companies, e-commerce stores or business operating costs.

Businesses should continue to retain records for ordinary expenses, including:

• Software subscriptions.
• Advertising and marketplace fees.
• Freight and fulfilment costs.
• Professional services.
• Payment processing charges.
• Inventory and cost of goods sold.
• Foreign exchange costs.
• Business travel and contractor payments.

The proposed standard deduction first applies to the 2026–27 tax return. It does not change the record-keeping requirements for the 2025–26 return.

If you are an Australian employer, director or business owner with employment income as well as business income, separate the individual deduction rules from the company’s bookkeeping records. This will help prevent personal and business expenses from being incorrectly combined.

4. Further ATO consultations close on 16 October

Two other consultations remain open until 16 October 2026:

• TR 2026/D1: Tax treatment of crypto asset airdrops.
• GSTR 2012/3DC: GST treatment of retirement village care services and accommodation.

These issues will be most relevant to businesses operating in digital assets, aged care or retirement village services. However, digital businesses holding or receiving crypto assets should monitor the airdrop ruling and maintain complete records of:

• The date assets were received.
• The quantity and market value at receipt.
• The wallet or exchange used.
• Any services connected with the airdrop.
• Disposal dates and proceeds.
• Transaction fees and blockchain records.

Draft rulings are not final law. Nevertheless, keeping records now will make it easier to apply the final position when published.

5. ATO scrutiny increases for AI, cloud and data-centre groups

The ATO is increasing its focus on