Government delays ATO credit card ban and covers the cost after business
The government delayed the ATO credit card ban and will cover the cost.
The ATO will not ban credit card payments for tax bills in December as planned. Treasurer Jim Chalmers announced the delay extends the deadline to the end of the financial year.
The government will cover the cost of credit card surcharges while the ATO consults further with businesses. The tax office had argued it would cost taxpayers about $200 million a year to absorb fees.
The Reserve Bank recently banned surcharges on all credit card payments. Small businesses and members of parliament pushed back hard, saying credit cards help them manage cash flow when tax bills land.
- $200 million
- Annual cost to absorb fees
- 5 percent of businesses
- Small businesses using credit cards
- December
- Original deadline
- End of financial year
- New deadline
Why it mattersSmall business owners keep their payment flexibility for now while the government buys time to get the policy right.
AustraliaAustralian small businesses can continue paying tax bills by credit card at least until the end of the financial year in June 2027, avoiding immediate cash flow problems.
Corroborated byperthnow.com.au
✓ Claims checked against the source. checked 1 h ago
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