The situation
There is some drama in Canberra. The Australian Tax Office (ATO) originally planned to stop accepting credit card payments for tax bills starting December 1st. The tax commissioner, Rob Heferen, noted that keeping these payments going would cost the ATO roughly $200 million annually because they aren't legally allowed to pass those surcharges on to users.
For small business owners—about 5% of them—credit cards are a legit cashflow tool. When the ATO announced the ban, it didn't exactly get a standing ovation.
The alleged friction
Last week, Treasurer Jim Chalmers announced new funding to keep credit card payments alive until the end of the financial year. Shortly after, Prime Minister Anthony Albanese revealed he intervened to make this happen after receiving a text from Andrew McKellar, the boss of the Australian Chamber of Commerce and Industry (ACCI), last Thursday.
Critics are highkey suggesting the PM overrode Chalmers to score a win, but Chalmers is pushing back on that narrative.
“He had a view and I agree with it, that we needed to step in... We had the same view,” Chalmers said on Wednesday, insisting the decision was a collaboration, not a power move. Meanwhile, shadow treasurer Tim Wilson is calling the whole thing a "consistent pattern" of the PM humiliating his treasurer.
Why it matters
It’s a classic case of "the plot thickens" in politics. While the ATO operates as an independent authority, the government can find ways to steer the ship. For now, small businesses get more time to manage their tax bills, but the optics of the relationship between the PM and the Treasurer are currently giving off some awkward vibes.
