In short:
The federal government is under pressure to intervene after the Australian Tax Office announced it would stop accepting credit card payments.
asserted
it → intervene → payments
It is unclear if the government supports the change after conflicting comments from Labor frontbenchers.
What's next?
uncertain
What → support → frontbenchers
Business groups are calling for "political leadership" and say credit card use is critical for cash flow.
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use → call → flow
The federal government is facing growing pressure over the Australian Taxation Office's (ATO) decision to stop accepting credit card payments for tax bills, with small business groups and crossbench MPs warning the move could make it harder for businesses to manage cash flow.
uncertain
businesses → face → flow
Labor frontbenchers have presented a confusing picture of the government's position, with some urging the tax office to resume discussions with the business sector, while Assistant Technology Minister Andrew Charlton said the government backed the ATO.
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government → present → ATO
Housing Minister Clare O'Neil defended the Reserve Bank's decision to scrap the credit card fees, but indicated the government was worried about the ATO's response and the impact on small business.
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government → defend → business
"The government does have some real concerns about what the ATO is proposing to do here," Ms O'Neil said on Thursday.
"
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O'Neil → have → Thursday
We really want the ATO to go back and talk to business about what they have decided to do here, and think about how they can find a solution that works for everyone".
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that → want → everyone
Small Business Minister Anne Aly yesterday urged the ATO to "keep talking with small businesses" and "find a way forward".
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Aly → urge → way
"I've spoken to small businesses and they were rightly shocked by this decision, and I do think they should have been consulted," she said.
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she → speak → decision
But Mr Charlton said small businesses that had previously relied on credit cards to pay tax bills would be able to find a workaround, pointing to flexible repayment schedules already available through the taxation office.
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that → say → office
"The government supports the ATO's decision," he said.
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he → support → decision
"If we're saying that surcharges can't exist in the private sector, then surcharges shouldn't exist in the public sector."
Business groups call for government intervention
The ATO met with small business groups on September 30 to foreshadow the public announcement the following day, on October 1.
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ATO → say → October
Business groups were then invited to a meeting yesterday "to answer follow-up questions and work through implementation and transitional arrangements for affected taxpayers".
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groups → invite → taxpayers
The tax office ban on credit card use will start on December 1.
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ban → start → December
"The ATO will continue to engage with stakeholders, supporting taxpayers and tax practitioners, and seek opportunities to promote awareness through consistent communication and key messages," an ATO spokesperson said.
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spokesperson → continue → communication
Australian Chamber of Commerce and Industry boss Andrew McKellar said there should be a "clear message from government" in support of small business.
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McKellar → say → business
"It's now time, I think, for the political leadership in government to stand up and really say to the tax office, 'This is not how it works,'"Mr McKellar said.
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McKellar → think → office
"Hopefully by the end of today or certainly by the end of the week … the tax office will be listening".
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office → listen → week
Members of the crossbench have also raised concerns about the change, with Independent Kate Chaney calling on the ATO to reconsider the ban or grant businesses a longer grace period to adjust.
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Chaney → raise → period
"Times are tough for small business owners," she said.
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she → say → owners
"Credit cards are one way businesses manage cashflow when a tax bill lands.
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bill → manage → cashflow
Removing that option with around eight weeks' notice makes things harder."
Community Strong Australia MP Allegra Spender said the government must work with the ATO to find a "workable solution".
"Managing cash flow is difficult at the best of times and businesses need to have the flexibility offered by credit," she said.
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she → remove → credit
Government tries to tap into public frustration
The change was announced after the Reserve Bank of Australia, which is independent, banned credit card surcharges across the board, which was hailed by Labor as a cost-of-living win for taxpayers.
Last week, Prime Minister Anthony Albanese and Attorney-General Michelle Rowland posted videos to social media celebrating the change, which Mr Albanese said would save Australians money "every time you tap".
But public sentiment has swiftly turned after cafes and other small businesses simply increased prices for consumers in a bid to recoup fees still owed to the banks.
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cafes → try → banks
Mr Charlton today rejected concerns that ending surcharges would force businesses to lift prices, saying payment processing costs had fallen.
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costs → reject → prices
"That reduction means that card payments are cheaper for businesses to process, so there's no reason as a result of this reform that consumers should be paying more when they tap their card for a coffee," he said.
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he → mean → coffee
The Coalition had slammed the credit card surcharge ban as a farce, with Nationals Senator Bridget McKenzie saying ending the surcharge would not make everyday items cheaper.
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items → slam → surcharge
"The prime minister promised that removing the surcharge would make coffees go down," she said.
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she → promise → surcharge
It doesn't disappear.
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It → disappear → ?
Businesses are being expected to absorb it".
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Businesses → expect → it
Independent member for Fowler Dai Le said the government had failed to "read the room" and said small businesses were already under strain due to rising fuel and energy costs, but did not want to raise prices for consumers.
"This is one more blow to the ever-increasing costs of running their own business and they don't know if they can keep their doors open into the future," she said.
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she → say → future
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