Australia Reverses ATO Credit Card Ban After Business Backlash

The Australian government reversed a planned ban on credit card payments for tax obligations after a backlash from small business owners. Assistant Treasurer Daniel Mulino admitted the administration knew as early as July 2026 that the Australian Taxation Office intended to stop accepting credit cards. The agency planned to end the service on December 1 to avoid absorbing an estimated $200 million in annual merchant fees following a Reserve Bank of Australia mandate to scrap surcharges.

Small businesses, which rely on credit cards for cash-flow management, reacted strongly to the late-September announcement. The Australian Chamber of Commerce and Industry lobbied the government for a solution, including a direct text message to Prime Minister Anthony Albanese. In response, the government provided transitional funding that allows the ATO to continue accepting credit card payments until June 30, 2027.

While government ministers describe the reversal as responsiveness to stakeholders, Shadow Treasurer Tim Wilson criticized the administration for waiting three months to act. The episode also triggered reports of leadership tensions between Prime Minister Albanese and Treasurer Jim Chalmers, though ministers have denied any instability within the government.