Assistant treasurer knew about ATO's credit card ban plans months ago

Assistant Treasurer Daniel Mulino revealed that the government became aware of the Australian Taxation Office's (ATO) plans to ban credit card payments in July, a month before the news became public. The ATO's decision to stop accepting credit cards from December 1 led to criticism from businesses, ultimately prompting intervention from the prime minister and Mulino himself to cover the costs and extend credit card acceptance until mid-2027.

Mulino stated that in July, the government was informed that the ATO was exploring options and initially favored not accepting credit cards, suggesting a transition period. The Australian Financial Review reported that the ATO had privately shared its decision and possible solutions with the government. The Reserve Bank of Australia's decision to eliminate card surcharges in October 1, which the bank claimed to be in the public interest and cost consumers $1.6 billion annually, prompted the ATO's credit card ban.

Mulino explained that indefinitely accepting credit cards would have severe financial consequences for the government, thus necessitating a transition period. Small businesses were notified of the ATO's decision on September 30, a day prior to its public announcement, and were granted a two-month grace period. However, the transition period was deemed insufficient, leading to government intervention.