Labor voices concerns as ATO halts credit-card tax payments

Clare O'Neil, the federal housing minister, warned that Labor has serious reservations about the Australian Tax Office’s recent policy to cease accepting credit-card payments for tax obligations. The change comes after the Reserve Bank eliminated merchant surcharges, a move O'Neil praised for saving consumers around $1.6 billion annually. Despite meetings with business groups, the ATO has held firm on its decision, prompting O'Neil to call for fresh negotiations to find a workable solution.

She emphasized that taxpayers should not be penalised for using their own money and that businesses must be clear about any fees they charge. Nationals frontbencher Bridget McKenzie countered that the surcharge removal will not automatically reduce prices for items like coffee and urged the prime minister to direct the ATO to reinstate card payments. The debate highlights tensions between tax policy, consumer costs, and business practices in Canberra.