00:02Well, the ATO has issued a statement a short time ago essentially confirming the status
00:08quo.
00:09It said that it will continue to engage with stakeholders and promote awareness, but at
00:15this stage the ban on credit card payments for tax bills will kick in from December as
00:22planned.
00:23Now of course this has come about after the Reserve Bank of Australia at the start of
00:28the month banned surcharges on all card transactions, debit and credit.
00:35That prompted the ATO to announce that it would ban credit card payments.
00:42It's argued that just 5% of small businesses pay their tax bills using a credit card, so
00:48the relative impact will be minimal.
00:50Of course as a percentage it's small, but 5% of 3 million small businesses means that
00:55many people will be impacted.
00:57The other thing the ATO said was that it can't absorb merchant fees, which it says would
01:02be about $200 million a year.
01:05Now that has drawn the ire of business groups, the Council of Small Business Associations,
01:12Cosboa, has said, well if the ATO can't absorb this cost to government agency, it's a bit
01:17rich to expect small businesses to absorb that cost when they're already running on razor-thin
01:23margins.
01:24The Australian Chamber of Commerce has called on the government to intervene here.
01:30Now what that might look like is a little unclear.
01:33It could be intervention in the form of asking the tax office to delay the implementation of
01:39this credit card ban.
01:40We have heard from the Treasurer's office saying that this is, the ATO is an independent authority
01:47and made this decision themselves.
01:50And that the government insisted that if the ATO took this decision, it must provide transition
01:57period to support businesses which they have done.
02:00And the government is continuing to engage with the tax office on this matter.
02:05The Deputy Prime Minister, Richard Miles, was also asked about this and answered in a similar
02:10vein.
02:12The ATO met with small business representatives during the course of the week and it will continue
02:18to consult with small businesses in respect of these measures.
02:21And Sarah, are there reports of a bit of a possible rift within Labor on this?
02:28Yes.
02:29Yes.
02:29The Housing Minister, Claire O'Neill, this morning said that there were concerns within
02:35government about the ATO's decision.
02:39Assistant Minister Andrew Charlton, however, said that Labor backed the ATO's decision.
02:44So that's prompted, you know, accusations of a rift and contradictory statements within the
02:51ministerial team.
02:52Now, Claire O'Neill did front the media again this afternoon in Geelong.
02:58She downplayed any suggestions of a rift.
03:01She said that Labor was united in standing up for small businesses and said that the RBA's
03:08decision, which the government claimed credit for at the time, was still a good one.
03:13Here's what she had to say.
03:15This is really clearly a decision for the ATO.
03:18What we ask is that they work in partnership with small business.
03:21This is probably their most important stakeholder group of almost three million small businesses
03:26that make our economy tick.
03:28So, Claire O'Neill there saying it is a decision for the ATO urging the tax office, however,
03:35to continue consultations with the business community.
03:40This was a decision Labor claimed credit for back at the start of the month.
03:45It appears, however, to have backfired, not only as small businesses accuse the ATO of leaving
03:53them in the lurch, but also on social media we've seen regular members of the public talking
03:59about their cups of coffee being more expensive as businesses pass these costs on.
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