The ATO said it will stop accepting credit‑card payments at the end of next month, but will keep the option open until 30 November to give taxpayers time to adjust.

The change follows the Reserve Bank of Australia’s decision to ban card surcharges from 1 October, a move the bank says will save Australians about $1.6 billion each year.

According to the tax office, merchant fees for credit‑card transactions cost almost $200 million a year. The ATO says it cannot keep absorbing those fees, which are expected to rise.

Credit‑card payments currently represent only 2.3 percent of all payments to the ATO, and roughly 5 percent of small businesses use cards to settle their taxes.

Business groups, led by the Australian Chamber of Commerce and Industry, accuse the ATO of double standards and have urged the government to reverse the ban.

Taxation commissioner Rob Heferen said in a statement on 2 October that the ATO would have preferred to continue accepting cards, but card companies would not offer a low enough rate.

The debate highlights how surcharge reforms and rising processing costs are forcing the tax office to change its payment methods, while small businesses worry about cash‑flow and fairness.