ATO gave months-long warning on credit card payment ban

The Australian Taxation Office (ATO) informed businesses about a looming ban on credit card payments for tax bills in July, but the government was only aware of the plan in July itself. The ATO decided to implement the ban in October, following a Reserve Bank ban on card surcharges. However, small businesses expressed concern over the lack of notice and called for an explanation.

The government stepped in after an outcry, covering the fees incurred on the card payments until the end of the financial year. Despite the months-long notice period, the government denied taking a hands-off approach to the change. The ATO said a two-month transition period was originally thought sufficient, but stakeholder feedback revealed it was not.

The Australian Chamber of Commerce and Industry criticized the lack of notice given to businesses about the changes. Industry Minister Tim Ayres rejected criticism of the government's handling of the situation, stating that the ban on credit card payments was due to the Reserve Bank surcharge ban.