The Australian Taxation Office said it would stop accepting credit‑card payments for tax bills from December. It explained that absorbing the card fees would cost about $200 million a year, and that only about 5 % of small businesses used credit cards for tax payments.

Treasurer Jim Chalmers announced that the federal government will fund the delay. He said the ban will now run until June 30, the end of the financial year, so the ATO has more time to consult with businesses.

The delay follows widespread backlash from small businesses and pressure from groups such as the Australian Chamber of Commerce and Industry. ACCI chief executive Andrew McKellar said the extension gives small business “much‑needed breathing space” and called for genuine consultation.

The government also said it had explored negotiating lower fees with credit‑card companies, but those talks were unsuccessful.

This move shows that government policy can be changed when businesses speak up, when cost estimates are considered, and when more consultation is needed before a decision is finalised.