Politics

Government knew in July that the tax office could stop taking credit cards, minister says

Business groups say small firms were caught out, after the ban on card payments for tax bills was delayed.

Confirmed

The federal government knew in July that the tax office could stop taking credit cards for tax bills, a minister says. Assistant Treasurer Daniel Mulino said on Sunday the government became aware in July, Australian Associated Press reported. The Australian Taxation Office (ATO) decided on the change in late September. Small businesses were given two months to get ready. Mr Mulino said that "wasn't enough". The ban has now been pushed back to 30 June 2027. He said taking cards forever "would have very serious fiscal ramifications for the budget". The Australian Financial Review reported that Labor "admits" it knew three months ago. Andrew McKellar, from the Australian Chamber of Commerce and Industry (ACCI), criticised the process. "This looks like a completely deficient policymaking process that took small business for granted. It cannot be repeated," he said. He said business found out "just hours before". Industry Minister Tim Ayres said there was no chance of the ban being dropped for good. Shadow Treasurer Tim Wilson said small business "shouldn't find out about decisions like this in the newspaper."

Sources Australian Associated Press (AAP); The Australian Financial Review; News24

Where Canberra, Australian Capital Territory (ACT)