ATO stops accepting credit card payments from November 30
The tax office will no longer accept credit card payments from late November, citing surcharge costs it cannot absorb.
The ATO is scrapping credit card payments from the end of November after the Reserve Bank banned card surcharges from October 1. The tax office says merchant fees cost almost $200 million annually and are growing, making it untenable to absorb the cost itself.
Some business groups say that is double standards, since they have been forced to absorb surcharge costs under the same RBA ban. The move has triggered anger among small business owners who used credit card payments as a cash flow tool.
The ATO called an urgent meeting with business groups to discuss the change. The tax office noted credit cards account for only 2.3 per cent of tax payments, with more than 60 per cent of that coming from larger companies and wealthy groups.
- November 30
- Payment cutoff date
- Almost $200 million
- Annual merchant fee cost
- 2.3 per cent of tax payments
- Credit card payment share
- October 1
- RBA surcharge ban date
Why it mattersSmall businesses lose a flexible payment option just as costs are rising, while the ATO avoids bearing the same costs the private sector must absorb.
AustraliaAustralian small business owners lose the ability to use credit cards to pay tax bills, removing a cash flow option at a time when many are struggling with rising costs.
✓ Claims checked against the source. checked 3 h ago
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