Credit Card Payment Ban Delayed: Government Steps In After Business Backlash

The Australian Taxation Office (ATO) announced it would stop accepting credit-card payments for tax bills from December 1. After intense pressure from business groups and several ministers, Treasurer Jim Chalmers announced a funding package that pushes the ban back to June 30 2027. The ATO will continue to accept credit cards via third-party providers and will retain other low-fee methods such as debit cards and bank transfers.

The GuardianKyabram Free Press Chalmers forces ATO to delay its credit card ban, while Greens say banks should wear card surcharge Australia Delays ATO Credit Card Ban Until Mid-2026, Funding Surcharges After Business Backlash — BigGo Finance ATO credit card ban delayed until July 2027 as government coughs up extra funding ABC News AustraliaNine.com.au

The move follows the Reserve Bank of Australia’s (RBA) October 1 ban on credit-card surcharges, a policy the government hailed as a cost-of-living win. The RBA estimated the surcharge ban would save Australians about A$1.6 billion annually. Because tax liabilities are set by Parliament, the ATO argued it could not pass the processing fees onto taxpayers and estimated the surcharge-free policy would cost the agency roughly A$200 million each year.

Australia Delays ATO Credit Card Ban Until Mid-2026, Funding Surcharges After Business Backlash — BigGo Finance

• Estimated annual surcharge cost to the ATO: A$200 million.

The Sydney Morning Herald

• Roughly 5 percent of small businesses used credit cards for tax payments in the 2024-25 financial year.

The Guardian

• About 2 percent of individual taxpayers used credit cards for tax bills.

The Guardian

• The RBA’s surcharge ban is projected to save A$1.6 billion per year.

The Sydney Morning Herald

Tax Commissioner Rob Heferen reiterated that absorbing the surcharge cost would be “not tenable” and that the original two-month transition was “insufficient for many operators.”

Nine.com.au

Sources differ on the proportion of taxpayers using credit cards: ATO statements cite 5 percent of small businesses, while other reports note 2 percent of individuals. The exact amount of transitional funding to be allocated remains unspecified, with the Treasury indicating the figure will be finalised in the mid-year economic and fiscal outlook due in December.

ATO credit card ban delayed until July 2027 as government coughs up extra funding

• “Australian small businesses have said the ATO’s announced timeframe was inadequate and we have taken these concerns seriously and acted on them,” — Jim Chalmers

ATO delays start of credit card fee ban after backlash

• “We’ve stepped in to ensure that the tax office can take credit card payments until the end of June next year,” — Jim Chalmers

The Sydney Morning Herald

• “This will provide more time for the ATO to engage with small businesses and other taxpayers who currently rely on credit cards, provide more detailed information to those affected, and consult on targeted options to support impacted taxpayers,” — Treasurer Jim Chalmers. The, views and expert

ATO delays credit card payment ban until June 2027

• “Cash flow is the biggest thing that’s often of concern for small business and using credit cards to pay tax bills is a way that a lot of people are just managing that issue,” — Clare O’Neil, housing minister

Nine.com.au

• “If the Australian Taxation Office can’t find its way out of the maze it has created, then it’s time for political leadership to step in and fix this,” — CEO Andrew McKellar, chief executive

Chalmers forces ATO to delay its credit card ban, while Greens say banks should wear card surcharge

These statements capture the key positions of the treasurer, the government’s rationale, and the concerns voiced by business representatives.

ATO credit card ban delayed until July 2027 as government coughs up extra funding