ATO's Credit Card Payment Ban Slams Small Businesses Amid Surcharge Row

A recent policy change by the Reserve Bank of Australia has sparked controversy among small business owners, who claim it will increase their costs and potentially lead to store closures.

The ban on credit card surcharges, which came into effect on Thursday, prohibits retailers from charging customers an additional fee for paying by card. Instead, businesses must either absorb the cost or build it into their prices.

The Australian Taxation Office has announced that it will stop accepting credit card payments after November 30, citing concerns about passing costs onto taxpayers. This move has been criticized as hypocritical, with many arguing that government agencies should not be exempt from the same rules they impose on small businesses.

Nikki Laski, manager of Melbourne-based Monarch Cakes, warned that the increased burden on small businesses could force some to close their doors. Card surcharge fees can cost up to $50,000 per year for cafes and restaurants and $100,0000 for a medium-sized pub.