Key facts
- Treasurer Jim Chalmers denied Prime Minister Anthony Albanese overruled him on the ATO's credit card payment ban.
- Chalmers stated he and Albanese agreed on the need for a longer transition period for the ATO.
- Prime Minister Albanese acted after receiving a text from Andrew McKellar of the ACCI.
- The ATO's ban on credit card payments for tax bills was set to take effect December 1.
- Continuing to accept card payments costs the ATO nearly $200 million annually.
Treasurer Jim Chalmers has denied that Prime Minister Anthony Albanese overrode his authority regarding the Australian Taxation Office's (ATO) decision to ban credit card payments for tax bills. Chalmers stated that he and the Prime Minister were in agreement about the need to provide a longer transition period for the ATO to implement the changes.
The controversy arose after the ATO announced it would stop accepting credit card payments from December 1, a move that followed a ban on surcharges by the Reserve Bank. The ATO indicated that continuing to accept card payments would cost nearly $200 million annually, as these costs could not be legally passed on to users. However, some small businesses utilize credit card payments as a cashflow management tool.
Prime Minister Albanese revealed he acted after receiving a text message on a Thursday morning from Andrew McKellar, head of the Australian Chamber of Commerce and Industry (ACCI), and an announcement was made by Friday. This timeline led to suggestions that Albanese had bypassed Chalmers. Chalmers, however, maintained that he was involved in discussions with ACCI and that the intervention was a joint decision with the Prime Minister, emphasizing they shared the same view.
Opposition figures, including Shadow Treasurer Tim Wilson, have criticized the Prime Minister's actions, viewing them as evidence of Albanese overriding Chalmers and potentially damaging their working relationship.