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ATO Gave Months-Long Warning on Credit Card Payment Ban
The government became aware in July and later intervened after small-business backlash, with the ATO saying absorbing $200 million in fees was untenable.
- On Sunday, Assistant Treasurer Daniel Mulino confirmed the government knew months ago the Australian Taxation Office planned to stop accepting credit cards, a decision that sparked significant business backlash.
- The Australian Taxation Office initially decided to stop credit card payments after the Reserve Bank of Australia banned surcharges, citing an unsustainable $200 million cost to the agency.
- "The two-month transition period was the busiest period of tax submission," Mulino told the ABC on Sunday, explaining why stakeholder feedback forced the government to intervene.
- The Albanese government intervened to underwrite credit card transaction costs until mid-2027, though Labor maintains that accepting payments indefinitely would have "very serious fiscal ramifications for the budget."
- Industry Minister Tim Ayres said the government is unlikely to permanently reverse the ban, noting the underlying surcharge reforms remain "in the public interest" to lower small business costs.
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Coverage Details
Total News Sources18
Leaning Left5Leaning Right3Center4Last UpdatedBias Distribution42% Left
Bias Distribution
- 42% of the sources lean Left
42% Left
L 42%
C 33%
R 25%
Factuality
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