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The ATO has decided to discontinue credit card payments for taxes to save consumers $1.6 billion annually, a move condemned by small business owners and politicians as unfair and a burden on cash-strapped businesses who will likely pass costs to consumers.
In a statement, the ATO said it would “not be appropriate” for the cost of credit card merchant fees to be transferred to the community.
The agency will still accept payments via direct debit and BPAY from debit and cheque accounts, along with cash and EFTPOS payments at an Australian Post Office.small business“I know how hard it is; I’m hearing that all the time ... and it’s particularly cash flow that is really hard to manage,” she said, confirming she will be writing to the ATO to urge them to reverse the decision. Be the first to know:Deputy Opposition Leader Jane Hume said small businesses, which often use credit cards to “smooth out” large tax bills over time, simply have no choice but to raise prices to help them absorb the cost.
“Small businesses have been in the firing line of this government from day one; they’ve had higher energy costs, higher rents, increased taxes, over-regulation and now this on top of it,” she told Sunrise on Friday. Deputy Opposition Leader Jane Hume and Community Strong MP Allegra Spender have slammed the ATO’s decision to ban credit card payments.
The agency recognised that some taxpayers rely on credit card payments to manage their tax commitments and said it is “committed” to helping taxpayers transition to alternative payment methods while continuing to support those experiencing financial hardship. Hume slammed the government for not understanding small businesses, calling the changes “the straw that will break the camel’s back”. She said the Coalition is calling on the government to reverse the changes imposed by the ATO, labelling them “unfair”.
Consumers take the hit The government said card surcharges have been costing Australians $1.6 billion each year, and the ban will save money every time customers tap their cards at supermarkets, cafes or when paying bills. However, consumers are bracing for impact, with economists warning prices will rise incrementally across the country as the changes come into effect.of “taking Australians for mugs”.
“He promised them that this would mean that they pay less when they check out, but that’s not the case,” she said. Spender noted there are genuine costs involved in moving money around through banks and merchants. She said the solution is not as easy as simply blocking the banks from imposing these fees in the first place, arguing they will “find another place to charge it”.
ATO Credit Card Ban Small Business Taxes Consumer Prices
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