Labor split on ATO credit card ban as businesses call for leadership

The Australian Tax Office (ATO) has announced it will stop accepting credit card payments for tax bills, sparking confusion and concern among politicians and small business groups. The government is divided over the decision, with some frontbenchers urging the ATO to resume discussions with the business sector while others, including the Assistant Technology Minister, claim the government backs the move.

Housing Minister Clare O'Neil expressed concern about the ATO's proposal and called for the agency to engage with businesses to find a mutually beneficial solution. Small Business Minister Anne Aly also urged the ATO to continue communicating with small businesses, stating that they were "shocked" by the decision and should have been consulted.

Business groups argue that credit card use is crucial for maintaining cash flow, while the government contends that surcharges should not exist in the public sector if they are prohibited in the private sector. The ban, which starts on December 1, has drawn criticism from crossbench members and community leaders, who argue that credit cards are essential for managing cash flow during difficult times.