ATO removing card payments is a positive step.
-The ATO said only 2.3% of tax payments were made with credit cards in 2024–25.
-Over 60% of these card payments were being made by privately owned and wealthy groups and multinational businesses. Probably taking advantage of loyalty schemes, not managing cashflow.
-The ATO rightly didn’t believe that the public purse should pay bank fees.
-If a small business has a cash flow issue, hardship or change in circumstance, they would be far better off getting an ATO payment plan, rather than paying by card, which would risk unsustainable debt costs over time (average card interest 25%.) The ATO said they recognized some customers could need help with adjustment and would assist.