Government knew in July of ATO’s planned credit card payment ban

Assistant Treasurer Daniel Mulino said the government knew in July that the Australian Taxation Office preferred to stop accepting credit card payments if it could not negotiate lower fees. The admission raises questions about why ministers intervened only after the ATO announced the planned ban, which drew strong criticism from business groups.

The ATO had planned to end credit card payments from 1 December, saying transaction costs were about $200 million a year and could not be absorbed sustainably. After the backlash, the government agreed to cover the costs until 30 June 2027. Mulino said ministers wanted the ATO to negotiate with card companies while respecting its independence, and noted that the Reserve Bank’s wider payment reforms were expected to save consumers about $1.6 billion a year.