Politics · Australia · 3 hrs ago
Labor MPs seek lasting solution for ATO credit card payments
The Australian Taxation Office (ATO) planned to stop accepting credit cards for tax payments because processing fees cost about $200 million a year.
Treasurer Jim Chalmers delayed the ban and said the government would give the ATO extra funding for a transition period.
Labor MPs, including ministers, want a lasting arrangement so businesses can keep paying tax by card beyond next July.
Some business owners use credit cards to manage cash flow, but the article says about 5 per cent of small business owners use them to pay tax bills.
The change follows the Reserve Bank’s decision to end credit card surcharges, which Labor supported.
Some clinics are raising fees and some private schools have stopped accepting cards after the surcharge ban.
The government has not disclosed the amount of funding or explained what permanent solution it will adopt.
Labor MPs are urging the federal government to reach a lasting agreement with the ATO so businesses can keep paying tax bills by credit card.
Treasurer Jim Chalmers delayed the ATO’s planned ban, and the government will provide additional funds to extend the transition.
The ATO said the fees, about $200 million a year, should not be passed on to taxpayers.
Some Labor MPs fear the issue could fuel a prolonged campaign by business groups and the opposition.
The debate follows the Reserve Bank’s decision to end credit card surcharges, which Labor supported.
- Who
- Labor MPs, including ministers, are urging the federal government to find a lasting solution. The ATO and Treasurer Jim Chalmers are involved.
- What
- The MPs want the ATO to continue accepting credit card payments for tax bills beyond the delayed ban.
- When
- The ATO announced the planned ban last week. Chalmers delayed it three days before the article was published.
- Where
- Australia.
- Why
- MPs say businesses with cashflow problems need the option, and they fear the issue will become a prolonged political controversy. The ATO said it was not appropriate to pass about $200 million a year in fees on to taxpayers.
Labor MPs seeking a lasting solution
Opposition
Payment policy
Labor MPs seeking a lasting solution
Labor MPs want an agreement with the ATO to keep credit card payments available beyond next July.
Opposition
Opposition Leader Angus Taylor said Labor did not understand small businesses’ concerns and criticized the credit card ban.
Responsibility for the ATO decision
Labor MPs seeking a lasting solution
Small Business Minister Anne Aly said she learned of the decision when the ATO made it public.
Opposition
Dan Tehan claimed ministers had worked with the ATO and knew about its decision.
The ATO said it would ban credit card payments because it considered the annual fees inappropriate to pass on to taxpayers.
Treasurer Jim Chalmers stepped in to delay the ATO’s ban.
Senior opposition members questioned the government in parliament about the decision, and Taylor criticized Labor’s handling of the issue.
- Annual fees
- $200 million
- Transition
- Government to provide additional funds to extend the transitional period; amount not disclosed
- Proposed lasting solution
- Keep credit card payments available beyond next July
- Credit card use for tax bills
- About 5 per cent of small business owners
- Businesses absorbing surcharge costs
- 90 per cent of all businesses
What people are saying
We don’t need to offend more people after the tax changes in the budget. At least those policies had merit and were worth the fight.
Since Labor came to power, over 50,000 businesses have gone bust. Killed by power bills no one can afford, new taxes no one voted for, and a credit card ban no one was told about
90 per cent of all businesses always absorbed those costs, and they now have access to cheaper merchant charges because of this reform
Sources
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