ATO to continue accepting credit cards until 30 June 2027
The ATO has confirmed that it will continue to accept credit card payments for tax obligations until 30 June 2027 (i.e., despite the Reserve Bank’s credit card surcharge reforms).
After 30 June 2027, taxpayers who wish to continue using a credit card to meet their tax obligations may continue to use third-party payment providers.
The ATO encourages taxpayers considering these options to carefully evaluate any relevant fees, charges and processing timeframes.
ATO focus on omitted income, private expenses and GST
The ATO is stepping up compliance action against businesses that omit income, over-claim expenses and GST credits, or use business income to pay for private expenses. Common errors the ATO continues to see include:
- not reporting all business income, including cash sales and contractor income;
- paying workers in cash to avoid tax and super obligations;
- claiming private expenses as business deductions, or incorrectly claiming GST credits;
- using business bank accounts, credit cards or assets for private expenses; and
- failing to keep accurate records of business transactions.
The ATO reports that its audits uncovered more than $210 million in unpaid taxes in the 2026 income year.
The ATO also issued more than $50 million in penalties to businesses that deliberately omitted or under-reported income, such as cash payments.
Work cars: Are employers overlooking private use?
The ATO is calling on employers to check how their employees use work cars, as FBT may apply where a car is used or made available for private use by an employee or their family members or associates. Private use can include:
- doing school pick-ups or drop-offs (even if it is on the way to or from work);
- running personal errands;
- garaging the car at or near the employee’s home (even for security reasons); and
- taking the car on weekend recreational trips.
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Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
