The Australian Taxation Office can’t charge card fees anymore, so credit card payments are no longer accepted from 1 December 2026. The ATO will continue to accept payments via methods including EFT and BPAY, but businesses that have traditionally put their tax bills on a rewards card will need another way to do it.
If you stick to EFT and BPAY, your business might face two hurdles. Firstly, you’ll no longer earn credit card rewards your ATO payments. Secondly, businesses that have relied on the interest-free period provided by their credit card will lose that cash-flow flexibility if they switch to a standard bank transfer.
That’s where a third-party payment processor such as pay.com.au comes in. Businesses can continue paying the ATO by credit card through the platform, which then settles the tax bill via bank transfer or BPAY. The result is that the ATO gets paid as normal, while the business can continue earning rewards from paying BAS and tax bills.
This guide is brought to you in partnership with pay.com.au.
How does pay.com.au work?
The process is relatively simple. Pay.com.au accepts your American Express, Visa or Mastercard, and then sends the funds to the ATO via bank transfer or BPAY using your payment reference number. The ATO receives the payment as a bank transfer, while your business gets the benefits of a credit card transaction.
You can use the platform for ATO payments including BAS, PAYG instalments, PAYG withholding, income tax, alcohol excise and other ATO debts with a PRN or CRN.
And it’s not just about points. Paying by card through pay.com.au can also preserve the cash-flow benefit of using a credit card, with pay.com.au stating that businesses can receive up to 55 days interest-free depending on their card.
Case study: using American Express for bills
American Express is one of the very few cards in Australia that offer any sort of points on ATO payments. From now until 30 November 2026, you have a limited window where you can pay the ATO with no card fees and earn those reduced points.
For example, the American Express Platinum Business Card earns 1 Membership Rewards point per dollar on direct ATO payments, compared with its standard 2.25 points per dollar through pay.com.au.
| $30,000 ATO payment | Pay ATO directly (card until 30 Nov 26) | Pay via pay.com.au (ongoing) |
|---|---|---|
| Amex Platinum Business earn rate | 1 pt/dollar | 2.25 pts/dollar |
| Amex points earned | 30,000 | 67,500 |
| Cost (gross, ex-GST) | no fee | $630 |
| Cost (net) | n/a | ~$473 |
| Total points | 30,000 | 67,500 |
That means 125% more Amex points from the card itself, before even adding any extra PayRewards points. The net cost of earning those points (if you are able to claim the GST portion and tax-deduct the operating fee at a 25% rate for small businesses) is closer to $473.
Finally, let’s assume you convert these Amex points to Qantas or Velocity Points (at 2 to 1) and redeem them as part of a high-value reward (international Business Class worth roughly 3 cents per point), then you’re getting around:
- ~$450 worth of net points value by paying directly
- ~$1,012 worth of net points value with Pay.com.au
After 30 November 2026
From 1 December 2026 onwards, you aren’t able to pay the ATO directly via credit card anymore. If you switch to EFT, here’s how the numbers stack up.
| $30,000 ATO payment | Pay ATO directly (EFT from 1 Dec 26) | Pay via pay.com.au (ongoing) |
|---|---|---|
| Amex Platinum Business earn rate | n/a | 2.25 pts/dollar |
| Amex points earned | 0 | 67,500 |
| Cost (gross) | n/a | $630 |
| Cost (net) | n/a | ~$473 |
| Total points | 0 | 67,500 |
In that case, you’re getting the same ~$1,012 worth of points for just $473 in net costs.
The same principle applies across other American Express products, although the exact difference depends on the card. For example, the Amex Qantas Business Rewards Card earns 0.5 Qantas Points per dollar on direct ATO payments versus 1.25 points per dollar through pay.com.au.
See more American Express ATO comparisons →
Visa and Mastercard are also covered
The same setup works with Visa and Mastercard credit cards. You add your card to pay.com.au, enter the ATO as a payee using your PRN or CRN, nominate the amount, and pay the bill. Pay.com.au settles the ATO payment by bank transfer or BPAY, while your card is charged for the transaction.
Most Visa and Mastercard products in Australia don’t offer any points on ATO purchases anyway. Through pay.com.au, you’ll still earn full card points. Visa and Mastercard processing fees are significantly lower than Amex.
Learn more about paying BAS by credit card →
Get ready before 30 November
The ATO’s credit card cut-off doesn’t mean businesses have to give up earning rewards on their tax bills. American Express, Visa and Mastercard can all continue to be used for ATO payments through pay.com.au after 30 November, while the ATO receives the money via bank transfer or BPAY.
Apart from earning points efficiently, using Pay.com.au is also better for your business’ cash flow. Rather than reducing your company’s savings transaction-by-transaction, you can accumulate them on the business credit card with up to 55 days interest-free, before paying it off in one whole sum.
You also have the option to earn PayRewards points at an extra cost:
- Core: 1 PayRewards points per dollar (1% fee ex-GST)
- Plus: 2 PayRewards points per dollar (1.8% fee ex-GST)
- Ultra: 3 PayRewards points per dollar (2.7% fee ex-GST)
These are earned on top of your credit card points. PayRewards can then be transferred to 17 airline and hotel loyalty programs, including some that aren’t easily accessible through other programs in Australia.
In case you do want to earn points without a credit card, such as via EFT, pay.com.au can still help. You can process the payment via PayRewards at no additional cost to the package prices above.
If you already use pay.com.au, there’s nothing you need to change when the ATO’s direct credit card facility disappears. If you don’t, it makes sense to get set up before your next BAS or tax bill so you’ll be earning points for the years to come.
Get started with pay.com.au before the ATO credit card changes →
Disclaimer: This guide is produced in partnership with Pay.com.au. This article is general information only and does not constitute financial advice. Consider seeking professional advice before making any financial decisions.
