Australian Government agrees to cover surcharge costs after ATO credit card ban
- Reports
- 6
- Developments
- 1
- Repetition
- 83%
New informationRepeats or wire copies
What happened
The Australian Taxation Office abruptly stopped accepting credit card payments after the Reserve Bank prohibited passing on surcharges to customers. This change was criticized by small businesses and the coalition. Andrew McKellar, chief executive of the Australian Chamber of Commerce and Industry, contacted Prime Minister Anthony Albanese requesting government intervention. Treasurer Jim Chalmers confirmed that the government would cover surcharge costs while undertaking further consultation.
Why it matters
The ATO's policy change, prompted by the Reserve Bank's ruling, created a financial burden for small businesses. The Australian Government's decision to cover surcharge costs addresses this financial impact resulting from the ATO's regulatory action.
An ATO ban has sparked opposition from Australian business groups.
Who's involved
- Anthony AlbanesePrime Minister who received the request for government intervention.
- Australian Chamber of Commerce and IndustryBusiness organization that opposed the ATO policy change.
- Australian Taxation OfficeGovernment agency that announced the credit card payment ban.
- Andrew McKellarChief executive of the Australian Chamber of Commerce and Industry who requested intervention.
- Australian GovernmentFederal government that confirmed it would cover surcharge costs.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Australian Chamber of Commerce and IndustrySpeculative
Its members could see their operating costs reduced as the government covers surcharge costs.
- Australian Taxation OfficeSpeculative
The ATO might need to modify or delay the credit card payment ban due to government intervention.
Keep exploring
The entities involved
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Anthony Albanese
31st prime minister of Australia since 2022
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Australian Chamber of Commerce and Industry
Australian business organisation
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Australian Taxation Office
Australian government statutory agency and the principal revenue collection body
Related events
- The Albanese government is considering policy changes, prompting a warning from Anglicare Australia.
- Anthony Albanese leads the Australian government and faces pressure from small business groups.
- Anthony Albanese leads the government in proposing a major tax overhaul.
- Bridget McKenzie criticized the ATO's refusal to absorb fees, leading to a clash with Coalition policy.