The Australian Tax Office will soon allow constituents to use credit cards to pay tax obligations owed to the government.

The decision is in response to a surge in internet and phone transactions during the first six months of the year. The government office believes more customers will pay their tax bills sooner, due to the ease and efficiency offered by credit card payments.

This would not be the first time the Australian Tax Office has accepted credit cards for tax payments. Though not widely advertised or promoted, the agency accepted credit cards during an 18-month pilot program, which was touted as a great success. The program reached a pinnacle in March when just over 9,000 transactions were made. Phone and internet transactions also climaxed in March, reaching 255,000 transactions.

As the agency plans to advertise the service, it is expected credit card transactions will increase substantially. The infrastructures needed to deal with such high levels of transactions are expected to be fully in place by April 2011. The agency is also searching for a contractor to assist in the transition.

It is believed this new service will also be available to businesses in addition to individual taxpayers.

Source: http://www.zdnet.com.au/