From 1 December, the Australian Tax Office will stop taking credit‑card payments for tax bills. The decision was announced by the ATO and will apply to all taxpayers.

Small‑business organisations and several crossbench MPs warned that losing the credit‑card option could make cash‑flow management harder for firms that rely on the flexibility to pay tax when money is available.

Within the Labor party, opinions differ. Some frontbenchers urged the ATO to reopen talks with the business sector, while Assistant Technology Minister Andrew Charlton said the government supports the ATO’s decision.

Business groups, including the Australian Chamber of Commerce and Industry, have called for clear political leadership and a government message that backs small businesses during the transition.

The credit‑card ban comes after the Reserve Bank of Australia prohibited credit‑card surcharges, a policy promoted as a cost‑of‑living win but which prompted some retailers to raise prices for consumers.

Treasurer Jim Chalmers reminded that the ATO is an independent authority and must provide a transition period for businesses, which the agency says it has already arranged.