A 9 October 2026 government announcement extends direct ATO credit-card payments until 30 June 2027. What self-employed hairdressers need to update now.
Abby's take
What this means for the industry — and for independents
Industry impact. The Government's 9 October announcement replaces the original short ATO credit-card transition period and allows additional consultation with businesses that depend on that payment channel.
For freelancers. Freelance hairdressers can update their tax-payment plans, but a longer credit-card option does not reduce the tax owed or remove interest, card costs and cash-flow risks.
My take. Use the extension to put a regular tax reserve in place, verify the current ATO payment options and make a plan that still works if the direct card arrangement changes after June 2027.
What I'd do next
- Update older BAS payment reminders that still say direct ATO credit-card payments stop after November 2026.
- Check the Government's dated announcement and the payment methods available in your ATO account before your next tax due date.
- Forecast bookings, running costs and tax reserves separately instead of relying on a card balance as the main tax-payment strategy.
- Review third-party credit-card options and free or low-fee alternatives before 30 June 2027 with a tax adviser if needed.
Watch-out. The statement is about payment methods, not extended tax due dates or a permanent promise of unchanged fees. ATO processes and third-party offerings should be checked again at payment time.
The new decision announced on 9 October
Treasury Ministers confirmed on 9 October 2026 that the Government will provide transitional funding so the Australian Taxation Office can continue accepting credit-card transactions until 30 June 2027. This supersedes earlier information that direct card acceptance would end after 30 November 2026.
The official release says the additional time will be used for consultation and to examine support for taxpayers who cannot readily pay by other methods. It is a current development rather than a restatement of the original September decision.
What happens after the new deadline
The 9 October release says that after 30 June 2027, credit-card payments to the ATO will remain possible through third parties, alongside free and low-fee methods including debit card and bank transfer. The exact arrangements and costs may depend on the eventual provider and payment channel.
Do not turn this into the claim that all card tax payments are banned after June, or that the current direct card option will last indefinitely. Verify the ATO's instructions before making an actual payment.
Do not confuse two different card changes
The Reserve Bank's 1 October 2026 card-surcharge reform applies to merchants adding card surcharges to customer payments. The ATO's 9 October transition announcement addresses how taxpayers pay the tax office. Neither announcement cancels the ordinary date on which a BAS or tax amount is due.
If your booking software still adds customer card surcharges, review that setting separately using current business.gov.au and provider guidance.
Put the tax reserve ahead of card convenience
Estimate the tax that may fall due, what cash is already set aside, the realistic timing of completed services and the running costs the business must meet. A credit limit can alter cash timing but does not create more profit; card interest and transaction charges can also make it expensive.
If a tax bill cannot be met from your reserve, discuss payment options before the due date rather than assuming that a longer credit-card transition is an extension of time to pay.
Make one dated payment plan
Keep the Treasury release date, 30 June 2027 transition date and your next actual BAS or tax due date as separate calendar entries. Check fees with the ATO and card provider, and ask a registered tax professional about a payment arrangement if needed.
Compare bank transfer, debit and available credit-card channels using your own numbers. Avoid publishing a universal interest rate or a promise that card rewards will cover the cost.
Official sources and limitations
Treasury Ministers, 9 October 2026, ATO to continue accepting credit cards until 30 June 2027: https://ministers.treasury.gov.au/ministers/anne-aly-2025/media-releases/ato-continue-accepting-credit-cards-until-30-june-2027 .
Australian Government, card-payment surcharge rules published 1 October 2026: https://business.gov.au/news/card-payment-surcharge-changes . Verify the live ATO payment instructions before the transaction.
Pressure-test income before the next tax bill
Model completed appointments and business costs rather than assuming a card limit will carry the tax obligation.
Run the income calculatorDisclaimer: General business information only, not individual financial, legal, tax or health advice. Check official guidance and your own circumstances, agreements and service requirements.
Common questions
Can I still pay an ATO tax bill by credit card in December 2026?
The Government confirmed on 9 October 2026 that direct ATO credit-card acceptance will continue until 30 June 2027. Check current ATO payment instructions and costs.
Has the ATO permanently abandoned its card-payment change?
No. The Government announced an extended transition and further consultation, not an indefinite commitment to the current direct-card arrangement.
Does the extension postpone my BAS due date?
No. This is about payment channels. Filing and payment deadlines remain separate matters requiring the usual checks with the ATO or an adviser.
Next step at The Beauty Basement
A new payment deadline is not extra income
Use the official 9 October announcement and keep tax cash flow separate from salon takings.
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