Reserve Bank bans card surcharges

From October first, the Reserve Bank banned surcharges on credit card payments. The central bank estimated the move would save consumers about one point six billion dollars.

Tax office stops accepting credit cards

On October first, tax commissioner Rob Heferen announced the ATO will stop accepting credit card payments for tax bills from December first, citing costs of almost two hundred million dollars a year.

Small businesses rely on credit cards

About five percent of small businesses use credit card payments for tax bills as a cashflow tool, managing liabilities by using credit when required. The ban threatens this practice.

Business groups demand government action

Australian Chamber of Commerce and Industry boss Andrew McKellar said small business needs the facility in place. They want one clear, consistent approach and solution from government.

“Small business needs this facility in place. They've got to manage cash flow. What they are looking for is for one clear, consistent approach and solution from government.”

Ministers urge ATO to reconsider

Housing minister Clare O'Neil said the ATO needed to talk with businesses about its decision. She told Channel Nine the government has real concerns about what the ATO is proposing.

“Cash flow is the biggest thing that's often of concern for small business, and using credit cards to pay tax bills is a way that a lot of people are just managing that issue.”

Government seeks flexibility on tax payments

Assistant minister Andrew Charlton defended the ban but stressed business operators needed flexibility on tax payments. The government has asked the ATO to continue consulting with small business.