October 2026 Round Up
This month, we look at changes that could affect how you pay tax, buy property through your SMSF and plan for investment gains or trust distributions. If you pay the ATO by credit card, you’ll need another payment method after 30 June 2027. We explain what to do, particularly if you have a payment plan. We also cover the SMSF property borrowing rules that took effect in August, what the proposed minimum trust tax could mean for you, and how the capital gains tax top-up could affect your plans to sell an investment from July 2027.
1. Paying the ATO by credit card ends after 30 June 2027
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2. Borrowing to buy property through your SMSF
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Paying the ATO directly by credit card ends after 30 June 2027
If you use a credit card to pay the ATO directly, you will need to arrange another way to make payments after 30 June 2027.
The ATO is making this change following the Reserve Bank of Australia’s Review of Merchant Card Payment Costs and Surcharging. As a government agency, it has decided that passing the cost of credit card merchant fees on to the community would not be appropriate.
The original deadline of 30 November 2026 has been extended following government intervention. Transitional funding will allow the ATO to continue accepting credit card payments until 30 June 2027, giving affected taxpayers more time to prepare.
If you have a payment plan linked to a credit card
If your direct debit arrangement is linked to a credit card, you must update your payment method before your first instalment due after 30 June 2027 to remain compliant with your payment plan.
You can follow the ATO’s instructions for updating the payment method linked to your payment plan.
Review how you will make future payments
If you rely on a credit card to manage your tax payments, review your payment arrangements now so you have an alternative in place when the change takes effect. The available options are listed on the ATO’s How to pay page.
You can continue using a credit card through a third-party payment provider after 30 June 2027. Before choosing a provider, check its credentials and consider the fees, charges and processing times.
Credit cards accounted for approximately 2.3% of tax payments in 2024–25. More than 60% of card payments were made by privately owned and wealthy groups and public and multinational businesses.
If you need support
The ATO recognises that this change may require adjustments if you currently rely on credit card payments. It has committed to helping taxpayers move to alternative payment methods and continuing to support those experiencing financial hardship or other circumstances that make it difficult to meet their obligations.
If you are concerned about meeting your tax payments, speak with us. You can also visit the ATO’s support to lodge and pay page or call the ATO on 13 11 42 during business hours.
Borrowing to buy property through your SMSF
If you are considering using your self-managed super fund (SMSF) to borrow to buy property, new rules have applied since 10 August 2026.
For limited recourse borrowing arrangements (LRBAs) entered into on or after that date, an LRBA can only be used to acquire real property if it is business real property, subject to the transitional arrangements below.
The changes were introduced by the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, which received Royal Assent on 26 June 2026.
Which arrangements are unaffected
The changes do not affect:
Existing LRBAs entered into before 10 August 2026.
Refinancing of existing LRBAs entered into before 10 August 2026.
Binding contracts to acquire real property exchanged before 10 August 2026, even if the contract settles or the LRBA is entered into after that date.
If your fund was already in the process of buying property, the date the binding contract was exchanged is therefore relevant, even where settlement occurred after the new rules began.
What to check before entering into an LRBA
Before committing to a property purchase using an LRBA, speak with us about whether the property meets the business real property requirements and whether any of the transitional arrangements apply to your fund.
You can also read the ATO’s guidance on changes to limited recourse borrowing arrangements.
Source: Australian Taxation Office, “Changes to LRBAs for property from 10 August”, updated 29 July 2026.
Important: This is not advice. Clients should not act solely on the basis of the material contained in this article. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval. Liability limited by a scheme approved under Professional Standards Legislation.