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Breaking: ATO credit card ban delayed as government backs down after business backlash

Read the original at ABC News (AU) ↗
Cite

Tregenza, H., & Armstrong, C. (2026, October 9). Breaking: ATO credit card ban delayed as government backs down after business backlash. ABC News (AU). https://www.abc.net.au/news/2026-10-09/credit-card-ban-ato-tax-small-business/107246990

Dated when The Aporia collected the article, usually within hours of publication. Check the original for its exact date and byline.

ABC News (AU) · collected 2026-10-09 · by Holly Tregenza, Clare Armstrong

Quick Summary

The Australian Taxation Office (ATO) has delayed its plan to ban credit card payments for tax bills, originally set to start in December, after facing backlash from small businesses. Treasurer Jim Chalmers announced that the government will cover surcharge costs until the end of the financial year to allow more time for consultations with affected businesses. The ATO had initially argued that absorbing these fees would cost taxpayers approximately $200 million annually, but the decision faced significant opposition from various stakeholders including ministers and crossbench members who urged a reconsideration or extension of the grace period.
Written by AI on 2026-10-09, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

Story summary

Treasurer Jim Chalmers delayed the Australian Taxation Office's (ATO) plan to ban credit card payments for tax bills, originally set to take effect on November 30. This decision came after significant backlash from small businesses and opposition parties. The ATO had argued that continuing to accept credit cards would cost taxpayers about $200 million annually due to fees associated with merchant services. Chalmers announced additional funding to support a year-long transition period, pushing back the ban until June 30 of the following year. This move aims to allow more consultation and better engagement with small businesses impacted by the change.

Written for “ATO Credit Card Ban Delayed” on 2026-11-01, grounded in this article and the 6 other(s) covering the same event.

Story

📰 ATO Credit Card Ban Delayed
Economy/Business · 7 article(s) covering the same event. Compare every outlet's account →

Compared with similar articles

This article reads unscored and hedges 0% of its claims. Each row says how that neighbour differs.
The Sydney Morning Herald
Hedges 0 of 34 claims Outlet record 61/100
The Sydney Morning Herald
Outlet record 61/100
The Guardian
⚖️ Leans left Hedges 0 of 14 claims Outlet record 66/100
Daily Mail
Hedges 1 of 22 claims Outlet record 68/100
The Sydney Morning Herald
Hedges 2 of 21 claims Outlet record 61/100
The Sydney Morning Herald
Outlet record 61/100
“Article A does not specify an event or change in policy, while Article B reports on a delay and funding decision by the government regarding a previous announcement.”
Daily Mail
Hedges 4 of 18 claims Outlet record 68/100
“Article A describes the initial announcement and subsequent meeting where the ATO held its ground on banning credit card payments, while Article B reports that the government has backed down and delayed the ban due to business backlash.”
The Sydney Morning Herald
⚖️ Leans left Hedges 3 of 22 claims Outlet record 61/100
“Article A focuses on the delay and funding for the ATO credit card ban due to backlash from businesses, while Article B discusses a broader context of the Reserve Bank's decision to ban surcharges and how the government took credit for it.”
The Guardian
Hedges 7 of 21 claims Outlet record 66/100
“Article A discusses the delay in implementing a credit card payment ban by the Australian Taxation Office due to business backlash, while Article B talks about businesses using the recent ban on credit card surcharges as cover for price increases. These are related but distinct events.”
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
20
sentences that state something as happening or true
Uncertain
0%
0 of 20 hedged ("reportedly", "may", "according to")
Leaning
withheld
no quote in the article backed the model's score
Publisher signals
68/100
ABC News (AU)'s corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
7
Economy/Business
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-10-09 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

ABC News (AU) · 4535 article(s) · 10 correction(s) detected
Running correction rate · 10 correction(s)

Who wrote this

Holly Tregenza
16 article(s) here · 1 carrying a prediction
🔮 Federal government launches probe into future of Australia Post Communications Minister Anika Wells says a parliamentary inquiry will examine whether Australia Post is keeping pace with Australians' needs for the future.
🔮 She would not provide an example but says there was a "direct connection" when pressed to consider examples like some of One Nation's YouTube content.
🔮 "They think if they do what they are being asked, they will no longer be targeted".
🔮 "I didn't direct or coordinate, but yes, if I was on a call, a leader is expected to encourage, inspire, if at all possible," he said.
🔮 How many will that be in a year's time?" he said.
🔮 Federal government to fund surcharge costs to delay ATO credit card payment ban after business backlash In short: The Australian Taxation Office will delay the implementation of its controversial credit card ban for up to a year.
🔮 In short: The federal government is under pressure to intervene after the Australian Tax Office announced it would stop accepting credit card payments.
🔮 Legal cigarette sales jump 55 per cent in Queensland after black market crackdown In short: Legal tobacco sales rose 55 per cent in Queensland after the state legislated stronger powers to shut illegal shops. Calls to Quitline more than doubled in the days after major enforcement operations, suggesting the crackdown may encourage some smokers to quit.
🔮 In short: Treasurer Jim Chalmers says a budget savings package will be delivered before the end of the year.
🔮 The government has celebrated a deficit $6 billion lower than the May forecast but warned there are tough times ahead for households. What's next?
Also by Holly Tregenza
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 16 articles by Holly Tregenza →
Clare Armstrong
28 article(s) here · 1 carrying a prediction
🔮 All eyes on MYEFO Markets are pricing a more than 80 per cent chance the Reserve Bank will lift the cash rate to 4.85 per cent on Tuesday, a level not seen since the global financial crisis in 2008.
🔮 During a Senate estimates hearing on Monday night, Senator Payman suggested Mr Albanese was waiting for her to suffer an attack similar to Ms Haines before he would grant extra staff.
🔮 Ms Plibersek also said she could not "count" the number of death and rape threats she has received over the years.
🔮 That will now be seriously tested.
🔮 His MPs have largely kept their complaints private, accepted decisions made by a small group of senior figures and trusted the prime minister’s judgement. But political loyalty is easier to maintain when a government is winning, and the patience of some Labor MPs is beginning to wear thin. Albanese told his caucus colleagues this week that despite Labor's current struggles, its political fortunes would improve as the next election drew closer. He revisited a favourite refrain, telling MPs the party would be "kicking with the wind in the fourth quarter". It was the same self-assured confidence he projected when Labor was in the grips of a political slump at a similar point in the last parliamentary term.
🔮 A Senate inquiry will scrutinise the legislation as the Greens push for tougher penalties and greater powers for individuals to sue tech companies.
🔮 In short: The Greens want Australians to be able to sue tech companies for online harms and will push for tougher fines to strengthen Labor's Digital Duty of Care proposal.
🔮 Such was the contrast in reception, that anyone might reasonably question why Mr Taylor had bothered to attend this year's Australian Conservative Political Action Conference (CPAC) at all.
🔮 Federal government to fund surcharge costs to delay ATO credit card payment ban after business backlash In short: The Australian Taxation Office will delay the implementation of its controversial credit card ban for up to a year.
🔮 Australia would require AI companies to prove they are properly testing models and preventing harm under proposed new laws modelled on banking and aviation safety rules.
2026-10-08 · assertive framing · Australia wants to regulate AI like banks and airlines
Also by Clare Armstrong
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 28 articles by Clare Armstrong →

Topics

ATO Australian Labor The Australian Taxation Office the Reserve Bank's

Subjects

ATO ORG · 12× Jim Chalmers PERSON · 2× The Australian Taxation Office ORG · 2× the Reserve Bank's ORG · 2× Albanese NORP · 1× Australian NORP · 1× Clare O'Neil PERSON · 1× Housing ORG · 1× Kate Chaney PERSON · 1× Labor ORG · 1×

Narrative

The tax office had argued it would cost taxpayers about $200 million a year to absorb the fees and noted only 5 per cent of small businesses used a credit card to pay their tax bill. But the decision sparked widespread backlash from small businesses, with several Albanese government ministers also raising concerns about the impact of the ATO's ban.
framing: assertive · carried by 1 article(s) · first seen 2026-10-09
🔮 Federal government to fund surcharge costs to delay ATO credit card payment ban after business backlash In short: The Australian Taxation Office will delay the implementation of its controversial credit card ban for up to a year.

Claims (20 extracted, 0 hedged)

Federal government to fund surcharge costs to delay ATO credit card payment ban after business backlash In short: The Australian Taxation Office will delay the implementation of its controversial credit card ban for up to a year. asserted
Office → fund → year
Treasurer Jim Chalmers has announced the government will cover the cost of the delay. asserted
government → announce → delay
The tax office had justified the move by saying it would cost $200 million a year to absorb the fees. asserted
it → justify → fees
A ban on credit card payments to the Australian Taxation Office (ATO) will be delayed, with the federal government agreeing to temporarily cover the cost of surcharges after pressure from businesses. asserted
government → delay → businesses
Treasurer Jim Chalmers has announced more funding for the ATO to push back the ban on using a credit card to pay tax bills for up to 12 months. asserted
ATO → announce → months
"Australian small businesses have said the ATO's announced time frame was inadequate and we have taken these concerns seriously and acted on them," he said. asserted
he → say → them
"Labor will always back small businesses because we know how important they are to our economy". asserted
they → back → economy
The funding will extend to the end of the financial year, to allow the ATO to "engage with small businesses" and consult on "targeted options" to support those impacted. asserted
ATO → extend → those
The ATO announced last week it would stop accepting credit card payments for tax bills from December in response to the Reserve Bank's ban on surcharges. asserted
it → announce → surcharges
The tax office had argued it would cost taxpayers about $200 million a year to absorb the fees and noted only 5 per cent of small businesses used a credit card to pay their tax bill. But the decision sparked widespread backlash from small businesses, with several Albanese government ministers also raising concerns about the impact of the ATO's ban. asserted
ministers → argue → ban
The government said the ATO had explored a number of options, including engaging with credit card companies to negotiate lower fees, but was unsuccessful. asserted
ATO → say → fees
Yesterday, Housing Minister Clare O'Neil defended the Reserve Bank's decision to scrap the credit card fees, but argued the government had "real concerns" about what the ATO was proposing. asserted
ATO → defend → what
"The government does have some real concerns about what the ATO is proposing to do here," she said. " asserted
she → have → what
We really want the ATO to go back and talk to business about what they have decided to do here and think about how they can find a solution that works for everyone. asserted
that → want → everyone
Members of the crossbench also raised concerns about the change, with independent Kate Chaney calling on the ATO to reconsider or grant businesses a longer grace period to adjust. asserted
Chaney → raise → period
"Credit cards are one way businesses manage cash flow when a tax bill lands. asserted
bill → manage → flow
Removing that option with around eight weeks' notice makes things harder," she said. asserted
she → remove → notice
Australian Chamber of Commerce and Industry chief executive Andrew McKellar had also called for a "clear message from government" in support of small business. asserted
McKellar → call → business
"It's now time, I think, for the political leadership in government to stand up and really say to the tax office, 'This is not how it works,'" Mr McKellar said yesterday. asserted
McKellar → think → office
The treasurer said costs for the extension would be finalised in the mid-year budget update, or MYEFO, due in December. asserted
costs → say → December
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