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Labor Has 'Real Concerns' over ATO Credit Card Ban
Business groups say the move could hit cash flow for small firms, while the ATO says only 2.3% of tax payments used credit cards last year.
- The Australian Taxation Office will stop accepting credit card payments for tax bills starting in December, following an October 1 announcement that sparked intense backlash from business groups citing cash flow concerns.
- Following the Reserve Bank's national ban on credit card surcharges, expected to save consumers about $1.6 billion annually, the ATO declared it could not legally absorb the costs now prohibited from passing to taxpayers.
- Data shows only about 2.3 per cent of tax payments were made via credit card in the 2024/25 financial year, mostly from wealthy groups, while 98 per cent of taxpayers do not use this payment method.
- During a meeting on Tuesday, Andrew McKellar, chief executive of the Australian Chamber, labeled the decision a "clear double standard" and urged the ATO to "go back to the drawing board."
- An ATO spokesman said Wednesday's "out of session meeting" was held "to answer follow-up questions and work through implementation and transitional arrangements," though business groups remain committed to reversing the ban.
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Kogan Founder Responds to ATO Card Ban, Says It Should Absorb Credit Card Fees
The head of online retail giant Kogan is the latest business owner to criticise the Australian Tax Office’s (ATO) decision to axe credit card payment options. The ATO’s move comes after the Reserve Bank of Australia’s (RBA) ban on card surcharge fees came into effect from October, forcing businesses and organisations to find ways to absorb the cost of swiping credit or debit cards. For some small cafe owners who spoke to The Epoch Times that amo…
·New York, United States
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Sydney Morning Herald+3 Reposted by 3 other sources
‘Double standard’: Business groups urge ATO to reverse its credit card ban
Businesses are stepping up their calls for the tax office to rethink its policy change to stop accepting credit card payments in response to the ban on surcharges.
·North Sydney, Australia
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Total News Sources17
Leaning Left5Leaning Right3Center3Last UpdatedBias Distribution46% Left
Bias Distribution
- 46% of the sources lean Left
46% Left
L 46%
C 27%
R 27%
Factuality
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