Small businesses have been given some welcome breathing room, with the Australian Taxation Office (ATO) set to keep accepting credit card payments until 30 June 2027.
The decision follows an announcement from the Treasurer and has been welcomed by the Australian Small Business and Family Enterprise Ombudsman, Lynda McAlary-Smith, who described it as a practical outcome that recognises the cash flow realities facing many Australian small businesses.
Why it matters
For many business owners, paying tax by credit card isn’t about convenience. It’s a legitimate way to manage cash flow and meet obligations on time, especially when timing between money coming in and bills going out is tight.
“For a small business, flexibility in how and when bills are paid can make a real difference to cash flow,” Ms McAlary-Smith said.
She noted that small businesses had raised concerns that removing the option too quickly would make an already difficult juggle even harder.
“It is pleasing to see those concerns heard and acted on.”
What happens next
The extension also creates time for proper consultation on longer term arrangements. Ms McAlary-Smith said the ATO had listened to concerns from her office and other stakeholders, and that she will continue to advocate for small businesses to make sure their practical experience sits at the centre of that consultation over the coming months.
What this means for our members
If you currently pay your tax obligations by credit card, nothing changes for now. It’s still worth having a chat with your accountant or bookkeeper about how you’ll manage payments beyond June 2027, so you’re not caught short when longer term arrangements are confirmed.
At Business Port Macquarie, we know how hard our local business owners work to stay on top of their obligations. It’s great to see small business voices being heard at a national level, and we’ll keep members updated as the consultation progresses.
Read the full media release from the Ombudsman here: https://www.asbfeo.gov.au/media-centre/media-releases/ombudsman-welcomes-ato-credit-card-reprieve-small-businesses