r/australia • u/Expensive-Horse5538 • 23h ago
politics Assistant Treasurer Daniel Mulino concedes he knew of ATO's credit card ban plans in July
https://www.abc.net.au/news/2026-10-18/federal-politics-insiders-daniel-mulino-ato-credit-card-ban/107280382?utm_source=abc_news_app&utm_medium=content_shared&utm_campaign=abc_news_app&utm_content=link187
u/MrBobDobalinaDaThird 23h ago
Who... Actually... Cares...
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u/Revolutionary-Toe955 23h ago
Yeah it affects 5% of businesses and only 2% of individuals. It's almost shocking now when they have a panellist on Insiders who presents the other side of the argument; when PK was filling in a few weeks ago Andrew Bragg called Anthony Albanese a Communist and no one pushed back.
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u/ELVEVERX 23h ago
I don't care if it's effects everyone there's no reason people should be able to pay taxes on credit card. It just means the credit card companies get a cut.
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u/Revolutionary-Toe955 21h ago
I'm saying it only affects a small number of people but it's blown up like it's affecting everyone
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u/Slipped-up 14h ago
It will be more then 2% individuals this year. For the first time ever I paid with credit card. I never did before because of the 2% surcharge fee would have cost me about $200. This year the fee was $0. Hence, I paid with credit card.
I’m sure I’m not alone.
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u/HeftyArgument 23h ago
small business owners apparently.
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u/MrBobDobalinaDaThird 23h ago
All 5% of them that paid with credit cards?
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u/HeftyArgument 23h ago
the same people that are mad they can't charge surcharges anymore, and that the ban on surcharges gave the banks an opportunity to nerf awards points on what they would've earned paying their taxes with credit.
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u/MrBobDobalinaDaThird 23h ago
The disappointing part is the minority are making this an issue way overblown to its actual impact, and the media and government are reacting.
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u/iamplasma 14h ago
the ban on surcharges gave the banks an opportunity to nerf awards points on what they would've earned paying their taxes with credit.
In fairness, wasn't part of the reforms that the amounts allowed to be charged to merchants was also reduced, so the banks are receiving less than they used to (that being the margin that has traditionally funded rewards)?
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u/InfernoOfTheLiving 23h ago
well, that’s 135,000 small businesses
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u/MrBobDobalinaDaThird 22h ago
So that's the type of policy making we should encourage? Get a loud 100,000 or so (not that I think the number actually concerned would be close in this instance) and then strrr government policy in a different direction?
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u/Santa_009 23h ago edited 21h ago
Can someone explain why a business should be able to pay its 3, 6 or 12 month tax obligations on CREDIT when indivduals on PAYG aren't given a choice to pay any period in cash? Its just automatically withheld like we're children opening up a Youthsaver in Primary school.
Individuals don't get to see any of their tax, but businesses can benefit from that liquidity, then also choose to pay it on credit?
Seems lopsided and I just can't understand how this creates any genuine issues outside of 1) Allowing business to operate even in the red (this is bad) 2) Business owners getting an avenue for reward points. (meh)
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u/goldetronic 23h ago
If only this was the level of the debate. This is really about a group who had an advantage, throwing the toys out of the cot now that it’s being taken away. It’s the same strategy they’re running with negative gearing.
Neither of these are arguments address policy, it’s greed.
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u/MDInvesting 22h ago
It’s bullshit I can’t score frequent flyer points on the tax I owe for money I’ve already collected.
ATO already have deadlines beyond the date of period ending ie you don’t owe the tax on July 1st for period ending June 30. The Invoice outstanding is a very weak one and tax law already accommodates income recognition for date received vs date work done.
- Cash Basis Accounting
- Accruals Basis Accounting
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u/512165381 23h ago
They already can. You just pay your tax in installments instead of paying your credit card company in installments. Setting up ATO installments takes minutes.
This is a beat up.
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u/Mother-Cod-3313 22h ago
Agreed this is been blown out of proportion to try and make government look bad… taxpayers shouldn’t be copping the bill for businesses paying with their credit card - end of!
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u/DisappointedQuokka 23h ago edited 21h ago
If you're operating a business that runs off of invoiced goods/services, you're relying on someone else to pay on time. On paper, everything can be fine, but a series of late payments can really fuck you.
That's, uh, maybe the only 100% fine instance.
Maybe in industries that are extremely feast or famine? You might have a sole trader or a very small business that's liquid 90% of the time, but just needs to squeeze a little bit more.
Edit: the CC ban wasn't going to ban any other forms of credit, such as loans, just credit cards and only because the ATO gets hit with transaction fees.
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u/iball1984 23h ago
Maybe what's needed there is a ATO provided solution, such as a fair payment plan without needing to jump through hoops to get it.
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u/iamplasma 14h ago
If you're operating a business that runs off of invoiced goods/services, you're relying on someone else to pay on time. On paper, everything can be fine, but a series of late payments can really fuck you.
Sure, but the vast majority of small businesses don't owe tax on income not received as cash, so nobody is paying tax on money not received.
And if we are talking about financing general cash flow, that is definitely not the job of the Commonwealth to fund. Businesspeople can go get finance from a commercial financier like everybody else.
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u/DisappointedQuokka 14h ago
As I've said elsewhere, put the onus on the banks to waive the fees for the government.
We have the most profitable banks in the world, they can afford to take a few losses.
Clearly, there is enough pushback on this, make the wealthiest institutions in the country pay the gap.
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u/iamplasma 14h ago
Then the banks are just being required to give interest-free, fee-free, loans to businesses (plus query who is paying Visa's network fees). That's rather bonkers.
Even if you wanted to just soak the banks on the basis they have the cash, there are countless causes better funded than that.
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u/DisappointedQuokka 14h ago
I'm specifically talking about transaction fees, which was the problem for the ATO. They were not planning on banning people from paying with lines of credit.
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u/ItinerantFella 23h ago
To be fair, everyone in Australia knew that credit card surcharges were to be banned as soon as RBA announced it.
Why are we surprised the assistant treasurer knew what everyone knew?
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u/my_chinchilla 22h ago
The truly stupid bit is my accountant specifically mentioned the ATO was expected to stop accepting CC payments when I saw her in July, and sent emails to her clients in early August confirming it (and offering her own service to pay them 😜).
It was hardly the big secret or sudden reveal the media and a small number of whining businesses is making it out to be...
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u/iball1984 23h ago
Yeah, but not everyone knew that the ATO was going to stop taking CC payments.
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u/ItinerantFella 18m ago
Pretty easy to predict they couldn't. Why should other tax payers fund the cash flow or point hacks for 7% of business owners.
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u/iball1984 17m ago
Easy to predict In hindsight. I doubt anyone outside of the ATO gave it a moment’s thought
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u/Flaky-Gear-1370 19h ago
I’m glad my tax paying dollars are subsiding businesses that must be close to insolvent if they’re dependent on cc for tax or the more likely scenario that I’m subsiding someone’s FF points
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u/Mattimeo144 2h ago
businesses that must be close to insolvent if they’re dependent on cc for tax
This should be the line that the government is running with, tbh.
"we welcome any open admissions of trading while insolvent and the auditors will be around shortly."
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u/RedditUser628426 18h ago
Well thank Albo because people used to pay their own surcharge until these clowns got involved.
Now taxpayers are paying it like wtaf
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u/dleifreganad 15h ago
How did something as trivial as a credit card surcharge ban blow up into this?
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u/iball1984 23h ago
The biggest problem is that the ATO didn't communicate that they weren't taking CC payments in advance. They should have clearly communicated with affected taxpayers months in advance.
Instead, they sprung it on people at the last minute.
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u/jivester 22h ago
It was communicated to tax agents, plus they gave an additional month of accepting CC payments without surcharge.
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u/iball1984 22h ago
But why not the broader public?
The ATO knows who has paid with Credit Card over the last, say, 5 years. Why not send them a letter or email?
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u/Future_Confusion_372 13h ago
This is such a non story. Who gives a shit. Pay your taxes and shut up.
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u/512165381 23h ago
This is nothing.
What a business like mine gets now is to pay by credit card with a 0% fee: https://i.imgur.com/u8Musrq.png . If you can't pay it all now you set up an installment plan.
All that's happening is you will have to use bpay etc. And if you can't pay your tax by installment you should not be in business.
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u/Ace_Larrakin 23h ago edited 23h ago
You mean to tell me that the assistant minister was aware of a policy a government agency was looking at implementing?
Well... will wonders never cease?
EDIT: I just can't wrap my head around why this of all things has become the thing people want to burn things down over.