Live: Minister moves to smooth over government response to ATO payment change
Defence Industry Minister Pat Conroy has tried to smooth over the federal government's response to the ATO's decision to end credit card payments.
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Wong says govt can't intervene and force ATO to reverse end to credit card payments
By Joshua Boscaini
By Joshua Boscaini
Penny Wong says the government doesn't have the power to direct the tax office to reverse its decision to stop accepting credit card payments.
The Coalition has called on Labor to direct the department to reverse the change so businesses can use credit cards to may tax payments.
The Australian Taxation Office made the decision to stop accepting credit card payments after the Reserve Bank ended surcharges.
But speaking to Channel Nine, Wong says the government can't intervene because the ATO is independent.
"In terms of the ATO, I'd make two points. They are independent. Governments can't direct tax office, the tax office to implement tax in a certain way," Wong says.
"What we can do is say to them, you should be consulting with small business, and we would really encourage the ATO to engage with small business about this.
"I know that only a small proportion of small businesses were using credit cards for this, but obviously it is a change."
Key Event
Conroy says Labor ministers have been 'appropriately urging' ATO to consult business
By Joshua Boscaini
By Joshua Boscaini
Pat Conroy has moved to smooth over the response from Labor ministers about the Australian Tax Office's (ATO) decision to stop accepting credit card payments.
The ATO has maintained its position to stop accepting credit card payments for tax bills from December 1, after the Reserve Bank banned on credit card surcharges from the start of this month.
Yesterday, Clare O'Neil told Channel Nine that Labor has "real concerns" about the ATO's decision to end credit card payments.
"Small businesses across the country really struggling to manage their cash flow," she said yesterday.
But soon after, Assistant Minister Andrew Charlton told ABC Radio Labor supported the ATO's decision to ban credit card tax payments.
The defence industry minister has defended the end of credit card surcharges on Channel Nine this morning, but says its up to the ATO to work with businesses to find a solution.
"What Labor ministers have been doing is appropriately urging the ATO to consult with small businesses. This is about transparency for consumers. That's what the broader decision is about," Conroy says.
"But the broader point is there, consumers want transparency. When I go to a shop, the price should be the same whether I pay with cash or card, so that people know that going in. And that's what the decision from the Reserve Bank is all about."
Shadow Treasurer Tim Wilson says there's "open warfare" in the government over the ATO's decision.
"I guess the question is who is actually in charge at the moment. The prime minister and the Pacific, we've got the treasurer off in Japan," he says.
Good morning 👋
By Joshua Boscaini
By Joshua Boscaini
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