The Council of Small Business Organisations Australia (COSBOA) says the Government's decision to extend credit card payments to the Australian Taxation Office (ATO) until June 2027 is an important acknowledgement of the significant impact removing this payment option would have on small businesses.
COSBOA Chair Matthew Addison said the decision recognises the importance of credit cards as a cash flow management tool for small businesses, with an estimated $2 billion in ATO payments made by credit card.
"We are pleased the Government has recognised the impact this decision would have on businesses that rely on credit cards to manage their cash flow and meet their tax obligations," Mr Addison said.
"But this decision also highlights a much broader issue. If the cost of accepting credit card payments is significant enough for the ATO to reconsider its approach, the Government must also recognise the costs being imposed on small businesses that accept those same payments from their customers.
"COSBOA has consistently warned that banning surcharges without first ensuring lower merchant fees are passed through to small businesses simply shifts those costs onto businesses already operating on tight margins.
"Removing surcharges also reduces transparency. Consumers should be able to see the cost associated with their chosen payment method and decide whether they want to incur it.
Mr Addison said the extension provides an opportunity to find a more practical and sustainable approach to ATO payments.
"COSBOA looks forward to working with the Government and ATO to ensure practical, affordable alternative payment options are available to small businesses before June 2027.
