Chalmers delays the ATO credit card ban to mid-2027, and the government drops a disaster-funding change, both after backlash
Treasurer Jim Chalmers announced on Friday that the government had stepped in to delay the Tax Office's ban on paying tax bills by credit card until June 30, 2027, after small businesses said they needed card payments to manage cash flow. The ban stems from the Reserve Bank's decision to outlaw card surcharges; ATO commissioner Rob Heferen said merchant fees would cost the office almost $200 million a year, AAP reported. The cost of the delay will be finalised in the mid-year budget update in December. The government also reversed course on disaster recovery funding, keeping its current cost-sharing arrangements after a letter from all Queensland mayors and peak industry groups, the ABC reported. Angus Taylor said Labor should scrap, not delay, the ban.
Two reversals on one day suggest ministers are sensitive to small-business and regional pressure. They also leave questions about how the Budget will pay for the delay and for disaster recovery.
If you run a business and pay the ATO by card, you can keep doing so until mid-2027, if the delay holds. If you live in a disaster-prone area, the funding split between the Commonwealth and states stays as it is.
Listening to small business and councils is good government, and the delay gives time to find a workable fee model.
Policy that is announced and then withdrawn within weeks looks careless, and the delay only postpones the problem of who pays card fees.
Watch the December budget update for the cost of the delay. Until then, treat June 30, 2027 as the date, though one report said July.
DailyDrop Australia edition No. 6 · Morning · SAT., OCT. 10, 2026