Published • loading... • Updated
Australia's Tax Office Announces It Will Ban Credit Card Payments
The tax office said 2.3% of tax payments used credit cards in 2024-25 and that merchant fees should not be passed to the community.
- The Australian Taxation Office will stop accepting credit card payments for tax bills after November 30, following the Reserve Bank of Australia's economy-wide ban on card surcharges effective October 1.
- Reserve Bank of Australia reforms prohibit retailers from charging additional card fees, aiming to save consumers $1.6 billion annually. The ATO stated it would "not be appropriate" for the cost of credit card merchant fees to be transferred to the community.
- Chamber CEO Andrew McKellar described the move as a "one-two punch" for small businesses relying on credit cards to manage shrinking cash flow. Deputy Opposition Leader Jane Hume noted businesses often use cards to "smooth out" large tax bills.
- Community Strong MP Allegra Spender labelled the decision "a bit rich," while Hume accused Prime Minister Anthony Albanese of "taking Australians for mugs." The Coalition is calling on the government to reverse the ATO's changes, labelling them "unfair."
- Taxpayers may still utilize direct debit, BPAY, or cash payments at an Australian Post Office, the agency confirmed. However, economists warn that businesses may raise prices elsewhere to absorb the transaction fees previously covered by surcharge models.
Insights by Ground AI
Podcasts & Opinions
12 Articles
12 Articles
Coverage Details
Total News Sources12
Leaning Left1Leaning Right4Center1Last UpdatedBias Distribution66% Right
Bias Distribution
- 66% of the sources lean Right
66% Right
L 17%
C 17%
R 66%
Factuality
To view factuality data please Upgrade to Premium
