Labor knew in July, months earlier than previously admitted, that ATO planned to ban credit card payments

Assistant treasurer Daniel Mulino has admitted he and Treasurer Jim Chalmers knew in July that the Tax Office was thinking about banning credit card payments for tax bills. That is more than two months earlier than the government had said. The Reserve Bank said in March it would ban merchant fees on credit card transactions from 1 October. The government has since paid the ATO to delay the ban until July 2027 after small businesses complained. Chalmers told parliament last week he learned of the decision in late September.

Mulino told ABC's Insiders that the ATO wanted a ban. He and Chalmers asked it to keep talking to card companies about lower fees. He said taking card payments forever would cost the budget a lot. The Australian Chamber of Commerce and Industry said the process took small business for granted. The government is also under pressure over a plan for a minimum 30 per cent tax on discretionary trusts.

Many small businesses pay tax bills by card. Sudden rule changes can hit their cash flow, so clear warnings matter.