Jim Chalmers delays ATO’s controversial ban on credit card payments following business outcry
Summary
The federal government has delayed a planned ban on paying tax bills by credit card for over six months after pushback from small businesses. Treasurer Jim Chalmers announced temporary funding to allow credit card payments to continue until the end of June next year, giving more time to consult and find a better solution.Key Facts
- The Australian Taxation Office (ATO) planned to stop accepting credit card payments for tax bills from December 1.
- The ban was because accepting credit cards would cost the ATO nearly $200 million a year, costs that can't be passed to taxpayers by law.
- About 5% of small businesses use credit cards to pay tax bills as a way to manage cash flow.
- The federal government overruled the ATO, providing extra funding to keep credit card payments through third parties until June 30 next year.
- Treasurer Jim Chalmers said this delay allows more consultation with small businesses to find a better approach.
- The Reserve Bank banned credit card surcharges, and the government had tried to take credit for that move.
- Business groups and political opposition pressured the government to act, citing the importance of clear payment options for small businesses.
- The ATO is an independent entity, so the government cannot directly order it, but stepping in with funding influenced the decision.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
