Pauline Hanson Urges ATO to Reverse Credit Card Payment Ban

One Nation Leader Pauline Hanson has demanded the Australian Tax Office (ATO) reverse its decision to stop accepting credit card tax payments after Nov. 30.

The ATO announced the change on Oct. 1, the same day the Albanese government’s ban on credit and debit surcharging came into force.

Senator Hanson warned the move would hurt small businesses, which have been forced to absorb card surcharges.

She argued that the Labor government had created another unintended consequence by stripping businesses of a cash-flow option they relied on.

“Credit helps businesses manage cash flow and meet tax obligations on time,” Hanson said.

“Removing this option will drive businesses to the wall when they are already doing it tough.”

At the same time, the One Nation leader accused the government of applying double standards while highlighting the impact of the surcharge ban.

“The government can’t impose payment costs on small businesses while allowing the tax office to avoid them,” she said.

“The Prime Minister and Treasurer promised Australians a cheaper coffee. Instead, it’s more expensive than the old surcharge while small business is going to be squeezed by the ATO.

“The ATO must reverse this decision immediately.”

Why Did ATO Make the Decision?

The ATO explained on Oct. 1 that it had decided it would “not be appropriate” for the cost of credit card merchant fees to be transferred to the community.

The tax office further noted that credit cards accounted for only about 2.3 percent of tax payments in 2024–25, with privately owned and wealthy groups, public companies, and multinational businesses accounting for more than 60 percent of those payments.

“The ATO recognises that some taxpayers currently rely on credit card payments to manage their tax payments and understands this change may require some adjustments,” the tax office said.

Deputy Opposition Leader Jane Hume has called for the ATO’s decision to be reversed.

“The Coalition is calling on the government to reverse this change that the ATO is imposing on small businesses because, quite frankly, it’s been very clear that this government doesn’t understand small business, and it’s imposing unnecessary costs on them,” she told Channel Seven.

However, the Labor government believes the ban on debit and credit card surcharges will take “pressure off” consumers.

“Australians will be able to use debit and credit cards without being penalised or surprised at the checkout thanks to these reforms,” Treasurer Jim Chalmers, Assistant Treasurer Daniel Mulino and Assistant Minister Andrew Leigh said in a joint statement.