ATO Credit Card Ban Sparks Rare Unity Between Hanson and Spender

The Australian Taxation Office (ATO) has announced plans to ban credit card transactions for tax payments, citing 'profiteering' by credit card companies. The decision follows the Reserve Bank of Australia's (RBA) ban on surcharges for Mastercard, Visa, and eftpos networks.

Industry Minister Tim Ayres defended the move, saying it will save consumers money at the till. However, Community Strong Australia MP Allegra Spender and One Nation leader Pauline Hanson have called for the decision to be reversed, arguing that small businesses will be forced to pass along charges to consumers in the upfront cost of goods and services.

Ayres stated that 'the credit card companies are charging too much, and that is a charge, ultimately, on the taxpayers because the ATO has to pay it.' Spender echoed these concerns, saying 'Businesses are expected to absorb these fees, while the ATO avoids them by withdrawing credit-card payments.'

The RBA estimates that merchants will inflate costs by around 0.1 per cent due to the transfer of charges to product pricing.