The ATO is stopping direct credit card payments from 1 December 2026, but businesses can still pay their tax bills by card through B2Bpay.
From 1 December 2026, the ATO will no longer accept credit card payments for any tax obligation. That includes BAS, PAYG, Super Guarantee and other ATO liabilities. If your business currently pays the ATO by credit card, you will need a different approach before that deadline.
B2Bpay lets your business use a credit card to pay suppliers and bills that do not accept cards directly, and that includes the ATO. You pay B2Bpay by credit card, and B2Bpay makes the payment to the ATO on your behalf via BPay and the reference details you provide.
This matters for a few reasons. First, you keep the interest-free days on your card, which means your cash stays in your bank account for longer. If your card gives you up to 55 days interest-free, that is potentially 55 days of extra working capital on what can be a significant payment. Second, your business earns full credit card reward points on that spend. Third, the transaction flows through to your accounting software via B2Bpay’s integrations with Xero, MYOB, and QuickBooks, so reconciliation does not become another manual headache.
The platform fee structure is straightforward and can be seen here. There are no hidden charges with no monthly subscription.
While the ATO change is a timely reason to look at B2Bpay, the platform is not built just for tax payments. The same mechanism works across most of your regular business outgoings, including suppliers who only invoice by bank transfer, rent paid to a landlord or commercial property manager, utilities, insurance premiums, and professional services.
That is a meaningful shift in how SMEs can manage their working capital. Rather than draining your bank account the moment each invoice hits, you can use your credit card’s billing cycle to smooth out timing mismatches between when you get paid and when you need to pay others. Over the course of a financial year, many businesses find this adds up to a more predictable cash position, particularly in industries with lumpy revenue or long debtor days.
The setup process is straightforward. You connect your card, add your payees, and start making payments. B2Bpay handles the transfer on the other side, so your supplier or the ATO receives a standard bank or BPay payment with the correct reference details.
One of the more practical benefits of routing business payments through B2Bpay is the potential to earn reward points on spend that would otherwise earn nothing at all. A tax payment made by direct bank transfer earns no points. The same payment made via B2Bpay on an eligible rewards card can earn you credit card reward points, plus B2B Points on top.
You can convert B2B Points to the loyalty points partner of your choice including Luxury Escapes Société Points, Velocity Points through the Virgin Australia Business Flyer program, Qantas Points through the Qantas Business Rewards program and Qatar Airways Avios Points.
For sole traders or SMEs spending tens or hundreds of thousands of dollars a year on payroll tax, quarterly BAS, and other ATO obligations, even a modest earn rate on that volume could translate into a useful points balance over time
It is worth being clear about what is not changing. The ATO will continue to accept payments via BPAY, direct bank transfer (EFT), and debit card. Australia Post will still process certain payments in person. The ATO’s online services will also keep working as normal for setting up payment plans if you need to spread a liability over time.
What drops off entirely is the ability to use a personal or business credit card to pay the ATO directly. That includes American Express, Visa, and Mastercard credit card products. If you have been using a credit card to pay your BAS or income tax instalments directly through the ATO’s portal, that option simply will not be there from 1 December 2026 onwards.
For businesses that have been doing this specifically to earn points or to use the card’s interest-free period, B2Bpay is a straightforward way to preserve both of those benefits after the change takes effect. The ATO still receives a bank payment in the normal way. You just paid for it with your card.
B2Bpay charges a platform fee per payment based on the card type used, and you should weigh that against the value you are getting, whether that is interest-free days, reward points, or both.
It is also worth noting that B2Bpay requires correct payee details to process ATO payments accurately. For ATO payments, that typically means your tax file number or ABN, the correct payment reference, and the right ATO account code for the type of tax you are paying.
Timing is the other consideration. If you have a payment due by a specific date, allow enough lead time for the payment to clear from B2Bpay to the ATO.
The ATO’s November 2026 cutoff is far enough away that it can feel abstract right now. But if your business pays quarterly BAS instalments, annual income tax, or monthly PAYG obligations by credit card, the cutoff will arrive in the middle of a normal payment cycle. Leaving it until late November means scrambling to set up an alternative under time pressure, which is not ideal when ATO payments have strict due dates.
Getting your B2Bpay account set up now means you can run a small test payment well ahead of the deadline, confirm your payee details are correct, and know exactly how the process works before it becomes urgent. It also means you start earning points or accessing interest-free days on your tax payments sooner rather than later. For SMEs across Australia with significant ATO obligations each quarter, that is a tangible benefit that compounds over time.
The ATO’s decision to stop accepting credit cards is straightforward, but your response to it does not have to be. With B2Bpay, you can keep using your credit card for tax payments, keep earning points, and keep managing your cash flow on your terms.
The window between now and 1 December 2026 is the right time to get this sorted, before the change catches you mid-quarter. B2Bpay makes it straightforward to pay the ATO and your other suppliers by credit card, even after the ATO’s direct card option closes.
You can sign up at b2bpay.com.au or book a demo to see how it works for your business before committing.
Looking for high-value Amex Business Card offers in Australia? With B2Bpay, you can unlock more value from your American Express® Business Card by earning rewards on business payments that typically don’t earn points when paid directly.
Join B2Bpay for free to pay all your business bills and be rewarded along the way.
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2. We will be in touch to get your started making and receiving card payments through B2Bpay shortly.
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1. Fill in the form below & we will get back to you requesting some more details and your logo
2. We will then set up your account and payment page.
3. Finally we will help you get a ‘pay now’ link on your invoices that will direct to your payment page.
