ATO Credit Card Tax Payment Ban Delayed: Government Reportedly Knew Months in Advance as Small Businesses Gain Temporary Relief — Sydney Auction Clearance Rate at 52%

Weekly Market Focus

The Australian Taxation Office (ATO) had planned to stop accepting direct credit card payments for tax bills from 1 December 2026. However, following strong opposition from small businesses and industry groups, the Federal Government has agreed to cover transitional costs, extending the payment option until 30 June 2027.

The decision has raised questions about when the government first became aware of the proposal. Reports suggest federal ministers were informed as early as July, despite earlier claims that they only learned of the plan in late September. The proposed ban followed changes to card payment surcharges, which could leave the ATO facing up to $200 million a year in processing costs if the government absorbed the fees.

While only around 5% of small businesses use credit cards to pay tax bills, the interest-free period can be an important cash flow tool, particularly for businesses in construction, freight and import-export industries. Removing this option could force businesses to use working capital earlier, adding pressure at a time when collectible small business tax debt has already reached approximately $36 billion.

Importantly, the decision is a delay rather than a cancellation. Direct credit card payments will remain available until 30 June 2027, but businesses may need to use third-party payment providers and pay associated fees after that date. The ATO will continue consulting with banks and industry groups, while businesses are encouraged to review alternative payment methods and prepare for potential changes to their cash flow arrangements.

Last Week’s Auction Results

Sydney: A total of 845 properties were taken to auction, with results reported for 501 properties. Of these, 260 were sold, resulting in a 52% clearance rate. The total auction value reached AUD 285,781,397, with a median sale price of AUD 1,430,000.

Melbourne: A total of 553 properties were taken to auction, with results reported for 385 properties. Of these, 203 were sold, resulting in a 53% clearance rate. The total auction value reached AUD 178,067,699, with a median sale price of AUD 930,000.