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<\/p>\nThe federal government is facing growing pressure over the Australian Taxation Office’s (ATO) decision to stop accepting credit card payments for tax bills, with small business groups and crossbench MPs warning the move could make it harder for businesses to manage cash flow.<\/p>\n
Labor frontbenchers have presented a confusing picture of the government’s position, with some urging the tax office to resume discussions with the business sector, while Assistant Technology Minister Andrew Charlton has said the government backs the ATO.\u00a0<\/p>\n
Housing Minister Clare O’Neil defended the Reserve Bank’s decision to scrap the credit card fees, but indicated the government was worried about the ATO’s response and the impact on small businesses.\u00a0<\/p>\n
“The government does have some real concerns about what the ATO is proposing to do here,” Ms O’Neil said on Thursday.\u00a0<\/p>\n
“We really want the ATO to go back and talk to business about what they have decided to do here and think about how they can find a solution that works for everyone.”\u00a0<\/p>\n
Small Business Minister Anne Aly yesterday urged the ATO to “keep talking with small businesses” and “find a way forward”.<\/p>\n
“I’ve spoken to small businesses and they were rightly shocked by this decision, and I do think they should have been consulted,” she said.<\/p>\n
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Andrew Charlton says businesses would be able to find a workaround.\u00a0 (ABC News: Matt Roberts)<\/p>\n
But Mr Charlton said small businesses that had previously relied on credit cards to pay tax bills would be able to find a workaround, pointing to flexible repayment schedules already available through the taxation office.<\/p>\n
“The government supports the ATO’s decision,” he said.<\/p>\n
“If we’re saying that surcharges can’t exist in the private sector, then surcharges shouldn’t exist in the public sector.”<\/p>\n
Business groups call for government intervention<\/p>\n
The ATO met with small business groups on September 30 to foreshadow the public announcement the following day.<\/p>\n
ATO will not budge on credit card ban after meeting with business groups<\/a><\/p>\n Small business groups say the ATO has indicated it will not reverse its decision to stop accepting credit card payments.<\/p>\n Business groups were then invited to a meeting yesterday<\/a> “to answer follow-up questions and work through implementation and transitional arrangements for affected taxpayers”.<\/p>\n The tax office ban on credit card use will start on December 1.\u00a0<\/p>\n “The ATO will continue to engage with stakeholders, supporting taxpayers and tax practitioners, and seek opportunities to promote awareness through consistent communication and key messages,” an ATO spokesperson said.<\/p>\n Australian Chamber of Commerce and Industry chief executive Andrew McKellar said there should be a “clear message from government” in support of small business.<\/p>\n “It’s now time, I think, for the political leadership in government to stand up and really say to the tax office, ‘This is not how it works,'” Mr McKellar said.<\/p>\n “Hopefully by the end of today or certainly by the end of the week \u2026 the tax office will be listening.”<\/p>\n Members of the crossbench have also raised concerns about the change, with independent Kate Chaney calling on the ATO to reconsider the ban or grant businesses a longer grace period to adjust.<\/p>\n “Times are tough for small business owners,” she said.<\/p>\n Kate Chaney says the ATO should reconsider the ban.\u00a0 (ABC News: Callum Flinn)<\/p>\n “Credit cards are one way businesses manage cashflow when a tax bill lands. Removing that option with around eight weeks’ notice makes things harder.”<\/p>\n Community Strong Australia MP Allegra Spender said the government must work with the ATO to find a “workable solution”.<\/p>\n “Managing cash flow is difficult at the best of times and businesses need to have the flexibility offered by credit,” she said.<\/p>\n Government tries to tap into public frustration<\/p>\n The change was announced after the Reserve Bank of Australia, which is independent, banned credit card surcharges across the board, a move hailed by Labor as a cost-of-living win for taxpayers.<\/p>\n Last week, Prime Minister Anthony Albanese and Attorney-General Michelle Rowland posted videos to social media celebrating the change, which Mr Albanese said would save Australians money “every time you tap”.<\/p>\n But public sentiment has swiftly turned since cafes and other small businesses simply increased prices for consumers<\/a> in a bid to recoup fees still owed to the banks.<\/p>\n![\"Kate](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/15394c02cfcc3b754dcdf6fad39094ae.jpeg\")
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