"The Treasurer's decision to delay the Australian Taxation Office's decision to remove the option of credit card payments until July 2027 is welcome but demonstrates that card payment charges remain a live and unresolved issue across the economy," Innes Willox, chief executive of the national employer association, Australian Industry Group, said today.
"The postponement of the ATO's unfortunate decision which was made without consultation or proper consideration highlights the practical challenges of changing payment arrangements where costs are ultimately borne by businesses and consumers.
"The decision to push back the cessation of credit card payments from November this year to July 2027 reflects the reality that payment costs cannot simply be wished away.
"Credit card charges remain a live issue across the Australian economy, affecting millions of business and consumer transactions every day.
"Whether the payer is a business meeting a tax obligation, a manufacturer paying a supplier, or a consumer making an everyday purchase, someone is absorbing the cost of electronic payments.
"The broader policy debate should focus on how to reduce the underlying costs in the payments system, rather than simply shifting those costs from one part of the economy to another.
"The announcement of the postponement is an opportunity for government, regulators and industry to work towards a more efficient and lower cost payments framework that benefits both businesses and consumers.
"Earlier this week we wrote to the Treasurer requesting the following:
"While we welcome the Treasurer's intervention and today's response to our first request, we remain committed to further engagement on the remaining three," Mr Willox said.
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