ATO Will Stop Accepting Credit Cards

Overview

• The Australian Taxation Office has announced it will stop taking credit card payments after a transition period that ends on November 30.
• The ATO says continuing to accept cards would cost taxpayers through merchant fees it estimates at about $200 million a year and that it could not absorb those charges.
• Business groups have criticised the decision as a government double standard and pressed the ATO to reverse course, prompting the agency to call special meetings with small business lobby and stewardship groups to discuss implementation.
• Small firms warn the move will hurt cash flow for businesses that rely on credit cards to pay taxes or manage instalment plans and say the short lead time leaves many operators exposed.
• The change follows Reserve Bank reforms that banned card surcharges and cut interchange fees, a package the RBA says will save consumers about $1.6 billion a year and has already led other organisations to stop accepting cards.