Treasurer Jim Chalmers has announced a six-month delay on a controversial ban regarding credit card payments for tax bills, following significant backlash from small businesses. The ban, initially set to take effect on 30 November, will now be postponed until the end of June 2024 as the government allocates additional funding for the Australian Tax Office (ATO).

Background

The ATO's original plan aimed to stop accepting credit card payments for tax bills, citing that continuing to do so would cost the agency nearly $200 million annually. This cost, according to Tax Commissioner Rob Heferen, cannot be passed on to taxpayers due to the legislative nature of tax liabilities.