The Albanese Government’s card surcharge ban has barely begun, but the Tax Office is already highlighting the problem facing small businesses: you can ban surcharging, but card processing costs don’t magically disappear.
Yesterday, the ATO announced they would no longer accept credit card payments following the surcharge ban as they would otherwise need to absorb the cost. The Government has not yet announced whether any other Government services will follow the ATO.
Shadow Minister for Financial Services Kevin Hogan said the government’s approach exposed a clear double standard.
“It seems it’s card costs for thee, but not for me. Card processing costs on small business, but not for the government.” Mr Hogan said.
“The Tax Office can just change the way it accepts payments because their ‘customers’ have no choice. A cafe, corner store, or family business doesn’t have that luxury.”
“For small businesses, the cost will need to come off already tight margins.”
“This is the worst possible time to be adding another cost to businesses already fighting to stay afloat with higher energy, insurance, and rent costs.”
“Since Labor came to office yearly small business insolvencies have tripled, with more than 14,000 companies entering external administration last financial year.”
“If the government isn’t prepared to absorb these card costs, they should explain why it expects small businesses to.”
