Jim Chalmers delays ATO’s controversial ban on credit card payments following business outcry

Treasurer Jim Chalmers has delayed the controversial ban on credit card payments for tax bills by more than six months, after facing significant business criticism. The ban, set to begin on 30 November, will now commence from July 2027. Chalmers announced additional funding to provide the tax office with a transition period, following days of criticism from small business owners.

The tax office will continue to accept credit card payments through third parties, as well as other payment methods like debit cards and bank transfers. The decision comes after the tax commissioner, Rob Heferen, announced plans to stop accepting credit card payments for tax bills starting 1 December, citing costs of nearly $200m a year that cannot be passed onto card users.

Despite these costs, an estimated 5% of small businesses use credit card payments for tax bills. Business lobby groups, including the Australian Chamber of Commerce and Industry, have welcomed the delay, calling it "much needed breathing space" for small businesses.