Mulino says government knew in July of ATO preference to end credit card payments

Australian Assistant Treasurer Daniel Mulino said on Sunday, 18 October, that he and Treasurer Jim Chalmers knew in July the Australian Taxation Office preferred to stop accepting credit card payments for tax bills. The admission places the government’s awareness of the proposal months before businesses were told of the planned change, which has since been delayed after their objections.

What Mulino says the government knew in July

Mulino told ABC’s Insiders that the ATO was considering options in July and that its preference at the time was not to accept credit cards. He said the government asked the agency to keep talking to card companies and allow a transition period. His account describes a preferred option under consideration, rather than a final decision to ban the payments in July.

How the ATO payment plan changed

The ATO decided in late September to stop accepting credit card payments from 1 December, according to ABC News. Businesses were informed on 30 September, a day before the decision became public, and were initially given a two-month grace period. After a backlash from small businesses, the government agreed to cover the costs of continuing to accept the cards until mid-2027.

The plan followed the Reserve Bank of Australia’s move to remove card surcharges from 1 October. Mulino said accepting credit cards indefinitely would have serious consequences for the federal budget, and that the government wanted the ATO to negotiate lower fees with card companies. ABC News reported that the ATO had said absorbing the cost was untenable and could reduce revenue available for government services.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar criticised the process. The Guardian quoted him saying it ‘took small business for granted’ and ‘cannot be repeated’. Mulino told ABC the government changed course after hearing that the original transition period was insufficient.