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# Labor's Mulino admits months-old warning on tax credit card ban
- URL: https://www.bushletter.com/labor-knew-of-ato-credit-card-ban-in-july-mulino-admits/
- Published: 2026-10-19T10:30:00.000Z
- Updated: 2026-10-19T10:30:00.000Z
- Description: Businesses received roughly two months' notice before the government reversed course, funding credit card payments until June 2027 to protect businesses relying on them for cash flow.
- Author: Bushletter Newsroom
- Tags: News, Politics, Australia

TLDR

Assistant Treasurer Daniel Mulino has confirmed the government knew in July that the ATO preferred to stop accepting credit card payments, months before a late-September decision triggered a backlash. A 9 October reversal extended credit card acceptance until 30 June 2027, funded by a transitional budget measure.

## Government sat on July warning before October backflip

Assistant Treasurer Daniel Mulino has admitted the government knew as early as July that the Australian Taxation Office was considering dropping credit card payments, revealing a months-long gap between that early warning and the eventual intervention. "In July, the government became aware that the ATO was looking at options and that at that point their preference was to not accept credit cards," Mulino said.[\[1\]](https://ministers.treasury.gov.au/ministers/daniel-mulino-2025/transcripts/interview-david-speers-insiders-abc?ref=bushletter.com)

Speaking on ABC's Insiders on 18 October 2026, Mulino said the government's response at the time was to push the ATO back toward the negotiating table. "The indication we gave to the ATO was that they should continue to engage with the credit card companies, and that there should be a transition period," he said.[\[1\]](https://ministers.treasury.gov.au/ministers/daniel-mulino-2025/transcripts/interview-david-speers-insiders-abc?ref=bushletter.com) The ATO engaged card companies in search of lower merchant fee rates, but those negotiations failed to produce an agreement.

## A compressed two-month window blindsided small business

The ATO made its final decision in late September 2026, resolving to stop accepting credit card payments from 1 December 2026 after failing to secure reduced rates from card companies.[\[1\]](https://ministers.treasury.gov.au/ministers/daniel-mulino-2025/transcripts/interview-david-speers-insiders-abc?ref=bushletter.com) That left a transition window of roughly two months, a timeframe small business groups said was inadequate for taxpayers who depend on credit cards to manage short-term cash flow.

The ATO estimated that absorbing credit card processing fees would cost the government around $200 million a year, making continued acceptance untenable without dedicated funding.[\[3\]](https://www.checkhansard.com.au/speech/10687951?ref=bushletter.com) After failing to negotiate lower rates with card companies, the agency moved to end the arrangement rather than absorb the cost.

## October reversal locks in June 2027 deadline

On 9 October 2026, Treasurer Jim Chalmers and Mulino announced transitional funding to allow the ATO to keep accepting credit card payments until 30 June 2027.[\[2\]](https://ministers.treasury.gov.au/ministers/anne-aly-2025/media-releases/ato-continue-accepting-credit-cards-until-30-june-2027?ref=bushletter.com) The reversal came just weeks after the ATO's late-September announcement and nine days before Mulino's public admission of the government's July awareness.

Just over two per cent of individuals and around five per cent of small businesses paid the ATO by credit card in 2024 to 25, according to figures cited in the joint ministerial media release.[\[2\]](https://ministers.treasury.gov.au/ministers/anne-aly-2025/media-releases/ato-continue-accepting-credit-cards-until-30-june-2027?ref=bushletter.com) The Council of Small Business Organisations Australia said the impact fell hardest on businesses using cards to bridge gaps in cash flow at tax time.

COSBOA Chair Matthew Addison said the group was pleased the government had acted. "We are pleased the Government has recognised the impact this decision would have on businesses that rely on credit cards to manage their cash flow and meet their tax obligations," Addison said.[\[4\]](https://cosboa.org.au/post/ato-credit-card-reprieve-highlights-wider-costs-of-surcharge-ban?ref=bushletter.com)

KEY TAKEAWAYS

01Mulino confirmed the government learned in July the ATO's preference was to stop accepting credit cards.

02The ATO decided in late September to end credit card payments from 1 December, giving businesses roughly two months' notice.

03Around five per cent of small businesses paid the ATO by credit card in 2024 to 25.

04Absorbing credit card processing fees costs the ATO an estimated $200 million a year.

05COSBOA Chair Matthew Addison welcomed the reversal, citing businesses that rely on cards to manage cash flow.

SOURCES & CITATIONS

1. [Interview: Daniel Mulino on ABC Insiders, 18 October 2026](https://ministers.treasury.gov.au/ministers/daniel-mulino-2025/transcripts/interview-david-speers-insiders-abc?ref=bushletter.com)
2. [ATO to continue accepting credit cards until 30 June 2027, joint ministerial media release](https://ministers.treasury.gov.au/ministers/anne-aly-2025/media-releases/ato-continue-accepting-credit-cards-until-30-june-2027?ref=bushletter.com)
3. [Hansard speech, 12 October 2026](https://www.checkhansard.com.au/speech/10687951?ref=bushletter.com)
4. [COSBOA: ATO credit card reprieve highlights wider costs of surcharge ban](https://cosboa.org.au/post/ato-credit-card-reprieve-highlights-wider-costs-of-surcharge-ban?ref=bushletter.com)

FREQUENTLY ASKED QUESTIONS

When did the government first learn the ATO wanted to stop accepting credit cards?

Assistant Treasurer Daniel Mulino confirmed the government became aware in July 2026 that the ATO's preference was to stop accepting credit card payments.

When does the ATO's credit card acceptance now end?

Under the 9 October 2026 reversal, the ATO will continue accepting credit card payments until 30 June 2027, funded by a transitional budget measure.

Why did the ATO want to stop accepting credit cards?

The ATO estimated absorbing credit card processing fees would cost around $200 million a year. After failing to negotiate lower rates with card companies, the agency decided to phase out direct credit card payments.

How many small businesses paid the ATO by credit card?

Around five per cent of small businesses paid the ATO by credit card in 2024 to 25, according to the joint ministerial media release of 9 October 2026.