Jim Chalmers overrules ATO’s controversial ban on credit card payments following business outcry
News Source
•Fri, 09 Oct 2026 00:45:19 GMT
📰 What Happened
Treasurer Jim Chalmers has delayed a ban on paying tax bills by credit card. The tax office had planned to stop accepting credit cards from 1 December. It said the change would cost almost $200m a year. Small businesses and the Coalition complained loudly.
Chalmers announced extra funding and pushed the start date back. The tax office will keep taking credit cards through third parties until July 2027.
🔍 The Backstory
Many small businesses use credit cards to manage their cash flow. About 5% pay their tax bills this way. The change followed a Reserve Bank move to ban credit card surcharges, which the government had welcomed. Because tax rules are set by parliament, the ATO said it could not add card fees into tax bills. The ATO is independent, so the government cannot simply order it around.
🎯 Why It Matters
Small businesses often depend on credit to survive tough months. This delay gives them more time and breathing room to pay their tax.
Treasurer Jim Chalmers has delayed a ban on paying tax bills by credit card. The tax office had planned to stop accepting credit cards from 1 December. It said the change would cost almost $200m a year. Small businesses and the Coalition complained loudly.
Chalmers announced extra funding and pushed the start date back. The tax office will keep taking credit cards through third parties until July 2027.
Many small businesses use credit cards to manage their cash flow. About 5% pay their tax bills this way. The change followed a Reserve Bank move to ban credit card surcharges, which the government had welcomed. Because tax rules are set by parliament, the ATO said it could not add card fees into tax bills. The ATO is independent, so the government cannot simply order it around.
Small businesses often depend on credit to survive tough months. This delay gives them more time and breathing room to pay their tax.