ATO bank card tax fee ban sparks small commerce backlash

The Australian Taxation Office is going through mounting stress to reverse plans to cease accepting bank cards for tax funds after small companies warned the transfer might take away an necessary supply of short-term financing.

The ATO plans to finish bank card funds for tax payments from December 1 following adjustments to Australia’s card surcharge guidelines.

The Reserve Bank’s new guidelines stop retailers from individually passing card processing prices on to clients, creating an estimated annual value approaching A$200 million if the tax workplace continued accepting bank cards below the prevailing system.

But small commerce teams argue the answer might create a a lot bigger cash-flow downside.

Around 5% of small companies are estimated to make use of bank cards to pay tax obligations, permitting them to make the most of interest-free intervals that may prolong past 50 days.