Treasury Delays ATO Credit‑Card Ban After Business Backlash

Treasury Minister Jim Chalmers announced that the Australian Tax Office’s planned ban on credit‑card payments for tax bills, originally set to take effect on 30 November, will be delayed by six months. The move comes after a wave of business complaints that the ban would disrupt cash flows.

Chalmers said the Treasury will earmark funds for a year‑long transition period, allowing the ATO to roll out a new payment system without forcing taxpayers to abandon card payments.

In addition to the delay, the government will temporarily cover credit‑card surcharges, meaning businesses can continue to add the extra fee while the ATO updates its payment gateway.

The decision was described by officials as a response to a "shockwave" of criticism from retailers and service providers, who warned that removing the card option would put them under pressure.