ATO to accept credit card payments

Australian credit card customers may soon be able to use their plastic to pay their tax bills, it has been claimed.

Following a successful trial last year the Australian Tax Office (ATO) is looking for a payments provider to make the service a reality, reported.

According to the news provider the trial was conducted after the ATO noted a marked rise in the number of phone and internet transactions it was carrying out.

Figures show that telephone and web transactions have increased by around one million each year since 2007.

An official credit payment service is expected to be up and running by April 2011 following the success of the ATO's 18-month trial.

Despite not being advertised by the organisation, thousands of customers were transferred to credit payments, including 9,024 in March alone.

The ATO conducted 9.4 million transactions via phone and internet in the 12 months to June 2010.