Mulino says government knew of ATO credit card plans in July
The government later agreed to cover costs so the tax office could keep accepting credit cards until mid-2027 after businesses opposed the proposed ban.
Assistant Treasurer Daniel Mulino says he and Treasurer Jim Chalmers learnt in July that the Australian Taxation Office was considering ending credit card payments, months before businesses were notified.
Speaking in an interview on 18 October, Mulino said the ATO had indicated it preferred to stop taking credit cards. The government asked it to keep negotiating with card companies and provide a transition period, he said.
The tax office announced its decision in late September, with payments due to cease on 1 December. Small businesses received notice on 30 September, one day before the public announcement, with two months to adjust.
Opposition from businesses prompted the prime minister and treasurer to intervene. The government agreed to underwrite costs, allowing the ATO to accept credit card payments until mid-2027.
Mulino said feedback showed the original transition period was insufficient. He argued that accepting credit cards indefinitely would have serious budget implications. Chalmers had previously acknowledged knowing the ATO was weighing the issue, but said he did not know its specific timetable.
The ATO's move followed Reserve Bank changes removing card surcharges from 1 October. The tax office said absorbing the A$200 million cost was not tenable and would reduce funding available for government services. Taxation commissioner Rob Heferen said the agency wanted to retain credit card payments, but card companies had not offered a sufficiently low rate.
