ATO stops credit card tax payments from November 30
The tax office will stop accepting credit card payments from November 30, forcing small businesses to absorb processing fees.
The card surcharge ban started today, October 1, preventing businesses from charging customers extra for card payments. The ATO announced it will stop accepting credit cards from November 30 because it will not pass merchant fees to the community.
The tax office says the new rule affects only 2.3% of tax payments, but small business owners are angry because they must now absorb the cost themselves. The Australian Chamber of Commerce called the decision utter hypocrisy because the government forces businesses to wear the fees while refusing to do so itself.
The surcharge ban saves customers $1.6 billion annually. Taxpayers can still pay by credit card until November 30, and the ATO is contacting those with credit card direct debits to arrange alternative payment methods.
- October 1
- Ban start date
- November 30
- ATO credit card cutoff
- 2.3 per cent of tax payments in 2024-25
- Card payments share
- 1.6 billion dollars
- Annual savings to customers
Why it mattersSmall businesses lose a payment option and must absorb new processing costs that the government refuses to pay.
AustraliaAustralian small business owners must change tax payment methods and likely pass higher card processing costs to customers or absorb them themselves.
✓ Claims checked against the source. checked 2 h ago
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