ATO chief admits credit card ban was rushed and poorly planned
ATO Commissioner Rob Heferen told a Senate committee he should have asked stakeholders before announcing the credit card payment ban.
ATO Commissioner Rob Heferen admitted on Wednesday. The tax office should have asked small business leaders before announcing the credit card payment ban.
The ban was originally set for November 30 this year. Government action and backlash delayed it to July 2027.
Heferen said he "jumped to the conclusion" that small businesses using credit cards were struggling with cash flow. Some were just using interest-free periods to smooth out their cash flow instead.
Only 5 per cent of small business taxpayers use credit cards. But about 256,000 businesses depend on the option.
The decision came after the October 1 surcharge ban. This stopped the ATO from passing card fees to taxpayers.
Earlier talks might have led to different solutions. These could include referrals or remissions for late payments.
- 256,000
- Small businesses affected
- 5 per cent
- Percentage using credit cards
- November 30, 2026
- Original ban date
- July 2027
- New ban date
Why it mattersShows how rushed policy can backfire. Tax office leaders now understand why listening to the businesses they regulate is important.
AustraliaSmall business owners get a credit card payment option until mid-2027 instead of year's end, giving them more time to adjust their payment methods.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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