Government knew in July

Assistant Treasurer Daniel Mulino has conceded the government knew in July the Australian Taxation Office was considering banning credit card payments, months before the decision became public.

ATO's September announcement

The ATO decided in late September to stop accepting credit card payments from December first, sparking backlash from the business community that forced government intervention.

What triggered the ban

The ATO's decision followed changes from the Reserve Bank of Australia to scrap card surcharges from October first, which was costing consumers about one point six billion dollars a year.

Government's July response

Mulino said the government told the ATO to continue engaging with credit card companies and that there should be a transition period for the change.

“In July, the government became aware that the ATO was looking at options and that at that point their preference was to not accept credit cards.”

Budget concerns cited

Mulino said accepting credit card payments indefinitely would have very serious fiscal ramifications for the budget, which is why the government insisted on a transition period.

Businesses given short notice

Small businesses were informed of the ATO's decision on September thirtieth, a day before it was made public, and given a two month grace period before the ban took effect.

Government reverses position

After stakeholder feedback showed the transition period was insufficient, the government stepped in to underwrite costs and allow credit cards to be accepted by the ATO until mid twenty twenty-seven.

Opposition criticism

Shadow Treasurer Tim Wilson said the government had three months to fix the issue and only stepped in when backlash got too loud to ignore, questioning the independence claim.

“You can't claim it's somebody else's decision while you're the one paying for it.”

Business concerns about process

Australian Chamber of Commerce and Industry chief Andrew McKellar said it was concerning these discussions happened in July while businesses were only informed hours before the surcharge ban took effect.

“This looks like a completely deficient policymaking process that took small business for granted.”

Leadership tensions exposed

The timeline has exposed tension between Treasurer Jim Chalmers and Prime Minister Anthony Albanese, with Albanese saying he intervened after a text from McKellar the day before.

“My door is always open. Andrew did text me last Thursday morning, and by Friday morning we had an announcement.”

Business seeks permanent solution

McKellar said ACCI wants a permanent outcome involving a long term solution for credit card payments to continue, with a key question being how that cost would be funded.

“We don't want small business to be left carrying the can for this decision.”