Government knew earlier than admitted

Assistant treasurer Daniel Mulino has conceded he and Jim Chalmers knew in July the Australian Taxation Office was considering banning credit card payments, more than two months earlier than previously stated.

What the ATO considered

After the Reserve Bank announced in March it would ban merchant fees on credit card transactions from October first, the ATO considered three options for handling tax bill payments.

Government pushed for delay

Mulino said in July the government insisted there be a transition period and worked with the ATO to make it possible. The ATO's original two month transition fell during the busiest tax submission period.

“In July, what we did was to insist that there be a transition period and also we took action with the ATO to arrange that that was possible.”

Chalmers claimed later knowledge

Treasurer Jim Chalmers told parliament last week he learned of the decision in late September, about a week before it was made public. This contradicts Mulino's admission of July knowledge.

Business groups criticise process

Andrew McKellar, chief executive of the Australian Council of Commerce and Industry, said the admission revealed a deficient policymaking process that took small business for granted and cannot be repeated.

“This looks like a completely deficient policymaking process that took small business for granted. It cannot be repeated.”

Ban delayed to mid-2027

Labor has intervened by funding the ATO to delay the credit card ban for tax bills until July twenty twenty-seven after widespread backlash from small businesses over the original plan.