ATO delays credit card ban after business pressure

Summarised from 2 outlets · Updated 9 Oct, 04:31 · Archive

The Australian Tax Office will delay its credit card ban until the end of the financial year, with the government covering surcharge costs.

The Australian Taxation Office will delay its ban on accepting credit card payments until the end of the financial year after the federal government stepped in to cover surcharge costs. Treasurer Jim Chalmers announced the decision following widespread backlash from small businesses. The ATO had planned to stop accepting credit cards from 1 December in response to the Reserve Bank's ban on surcharges.

The tax office had justified the move by saying it would cost taxpayers about $200 million a year to absorb the fees. It noted that only 5 per cent of small businesses used credit cards to pay their tax bill. However, several government ministers raised concerns about the impact of the immediate ban, with businesses warning they would face pressure if the payment option was withdrawn.

Treasurer Chalmers said the delay would give the ATO 'more time' to consult with businesses and 'get it right'. The government said the ATO had explored options including negotiating lower fees with credit card companies but was unsuccessful. The Greens argued that banks should bear the costs of card transactions rather than small businesses absorbing surcharges or increasing prices.

How it is being reported

• Chalmers forces ATO to delay its credit card ban, while Greens say banks should wear card surchargeThe Australian Taxation Office has been forced to delay its ban on accepting credit card payments for another six months, following an outcry from the business sector, which has to absorb card payment surcharges or increase prices. The ATO decided to refuse credit card payments from 1 December, saying it was not tenable for it […]Region Canberra · 9 Oct, 04:05
• Breaking: ATO credit card ban delayed as government backs down after business backlashThe federal government will temporarily cover credit card surcharges after businesses warned that losing the payment option would put them under pressure.ABC Australian Capital Territory · 9 Oct, 01:59

In this story: Australian Taxation Office · Jim Chalmers · Reserve Bank · Anne Aly · Daniel Mulino · Penny Wong · Australia

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