Live: Tax office boss concedes consultation failures on credit card ban

The head of the tax office says he would have consulted more closely with small businesses if he had his time again, conceding the ATO should have had a more open conversation before rolling out the credit card ban.

Meanwhile, households are bracing for the fifth interest rate rise this year, with pressure mounting on the federal government to find solutions. 

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Thu 29 Oct 2026 at 7:31amThu 29 Oct 2026 at 7:31am

ATO boss grilled on controversial credit card ban

By Lexie Jeuniewic

The Australian Taxation Office boss has conceded the agency could've consulted small businesses better before announcing its controversial credit card ban.

Commissioner of Taxation Rob Heferen told Senate estimates last night he realised the Reserve Bank's surcharge ban would be a "real issue" for the ATO after receiving a letter from Assistant Treasurer Daniel Mulino about the RBA's reforms on April 28 this year.

"That brought it to a sharp head," Heferen said.

The commissioner said two options were subsequently formulated by the tax office: continue accepting credit card payments and request government funding or ban credit cards and map out an appropriate transition for those impacted.

He said he first had a discussion with Mulino about the matter on July 20, and a series of meetings followed.

Heferen said that on September 25, based on advice from his senior executive, he personally arrived at the decision to propose the credit card ban, and small businesses were informed on September 30 — a day before it was made public.

Thu 29 Oct 2026 at 7:16amThu 29 Oct 2026 at 7:16am

Good morning 👋

By Holly Tregenza

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