Australia’s New Credit Card Rules: What Recruitment Agencies Need to Know

Credit cards have long provided businesses with a short-term buffer when cash flow is tight.

A business could pay a tax liability, supplier or operating expense immediately, then repay the card once the cash came through. However, recent changes to Australia’s card payment system have made that approach less reliable.

From 1 October 2026, businesses can no longer add surcharges to Visa, Mastercard, American Express or eftpos card payments. Businesses that continue accepting cards must now absorb the processing costs or incorporate them into their overall pricing.

However, the Australian Taxation Office has taken a different approach. After 30 November 2026, it will stop accepting credit card payments altogether.

For businesses, the bigger concern is what these changes reveal about relying on credit cards to manage working capital.

Credit Cards Were Filling a Cash Flow Gap

Many businesses use credit cards because money does not always arrive when expenses are due.

This timing challenge is particularly significant in recruitment and labour hire.

Contractors may need to be paid weekly, while clients can take 30, 45 or even 60 days to settle invoices. Payroll tax, superannuation, insurance and operating expenses must also be paid according to fixed deadlines.

Credit cards can provide temporary relief, but they do not solve the underlying cash flow gap. They simply move the obligation to another date, often with interest, fees and limits that may not reflect the needs of a growing recruitment business.

Stronger Alternatives to Credit Cards

Recruitment agencies do not experience cash flow in the same way as many other businesses.

Growth can increase financial pressure before it improves cash flow. Winning a major client or adding a large contractor book creates an immediate need to fund wages, superannuation and operating costs. Revenue may be growing, but the cash connected to that growth can remain tied up in unpaid invoices.

A standard credit card limit may not increase quickly enough to support that growth. A more sustainable approach is to align funding with the invoices, payroll cycles and payment terms that shape the business.

APositive provides funding, payroll and payment solutions designed specifically for recruitment and labour hire businesses.

With AFunding, agencies can access cash tied up in eligible unpaid invoices instead of waiting for clients to pay. This working capital can help support payroll, operating costs and new growth opportunities.

Because the funding is linked to invoices, the facility can grow alongside the business. As an agency places more workers and raises more invoices, the available funding can increase to support that growth.

APayroll can further reduce pressure by bringing payroll and back-office processes together. Rather than managing funding, timesheets, payroll and invoicing through disconnected systems, agencies can create a more streamlined process with greater visibility over upcoming obligations.

Permanent recruitment agencies can also use APay to give clients more flexibility. Employers can spread permanent placement fees across three to six monthly instalments, while the recruitment agency receives the invoice amount upfront.

This gives clients an alternative to paying a large upfront fee by credit card or requesting extended payment terms. It also helps the agency protect its cash flow without discounting its service.

Preparing for What Comes Next

The changes to card payments should prompt recruitment leaders to review how their business manages short-term cash flow.

If your agency regularly relies on credit cards to cover payroll, tax obligations or other expenses while waiting for clients to pay, it may be time to consider whether your funding structure is keeping pace with the business.

Credit cards can provide short-term flexibility. However, sustainable recruitment growth requires funding and payment solutions built around the realities of the industry.

Through integrated funding, payroll and payment solutions, APositive helps recruitment and labour hire businesses improve cash flow, reduce payment friction and grow with confidence.

Ready to explore a stronger alternative to credit cards? Speak with APositive today.