00:01This is really in response to the sustained pressure from business groups and the Federal
00:07Opposition for government intervention in the ATO's decision to ban credit card payments
00:13on tax bills from December.
00:17We saw business groups accuse the ATO of hypocrisy, given the Tax Office was saying it couldn't
00:25afford to absorb the cost of credit card transaction fees, but was expecting small businesses to
00:31do this.
00:32I guess this backlash really is an unintended consequence of the Reserve Bank's announcement
00:38at the start of the month that it would ban all card surcharge fees.
00:44Now, that had been lauded by the government as a cost of living relief measure, but has
00:51clearly backfired and we've seen a pretty messy week from Labor ministers appearing to
00:58contradict each other in the media as to, you know, whether or not the government supported
01:03the ATO's decision.
01:05Treasurer Jim Chalmers is back from a trip to Japan where he met with his Japanese counterpart
01:11this morning, I guess cleaning up this mess, announcing that the government will give the
01:19ATO about a hundred million dollars to basically pay the gap fee to extend this ban until the
01:27end of June next year.
01:30That's expected to cost the Federal Budget about a hundred million dollars.
01:34The Treasurer says the government has heard feedback from the business sector loud and clear.
01:40We take very seriously the feedback that the ATO and the government have received when it
01:46comes to implementing this surcharge ban.
01:50Now we try not to interfere with the RBA or the ATO when they go about designing and implementing
01:58this surcharge ban, but it's really important that we have stepped in today to make it possible
02:04for the ATO to continue to take credit card payments until the end of the financial year.
02:12Now the federal opposition has been highly critical, even of this extension.
02:19Angus Taylor, opposition leader, has said instead of screwing businesses today, they're going
02:25to screw them tomorrow or in at least nine months' time.
02:29And the coalition is proposing legislation that would compel the tax office to accept credit
02:35card payments from businesses.
02:38It's expected to introduce that legislation to parliament next week.
02:43And what have business groups said?
02:45Yeah, Jo, look, there's been broadly business groups have welcomed this extension, but it's
02:52clear that they are looking for a longer term solution and hoping the tax office will eventually
02:59reverse this decision.
03:00We heard from the Australian Chamber of Commerce, Chief Executive Andrew McKellar, who said that
03:06he's hoping that the ATO can continue to speak to credit card providers to negotiate lower
03:16fees that are eventually acceptable enough to the ATO, whereby they can absorb the cost of
03:23continued credit card transactions from businesses.
03:27We need a long term solution.
03:30We need to find a way to ensure that small business has the full flexibility going forward to meet
03:38its liabilities in relation to payments to the tax office.
03:45So, interestingly, Andrew McKellar didn't back coalition calls for legislation.
03:51He said he hoped the ATO would come to the table of its own accord.
03:56And we do know that the expectation clearly from business groups and the government is that the tax
04:02office will continue consulting with businesses and with those credit card providers to try to
04:07negotiate lower rates.
04:08And what was the other announcement from the government today?
04:11Yeah, there's been something of a double back down from Labor, Joe.
04:16The Treasurer also announced that the government would no longer pursue a reduced amount of
04:23contribution for disaster recovery funding.
04:26So Labor had proposed lowering its contribution to 50-50 with the states and territories.
04:31Instead, Jim Chalmers saying that that contribution will remain at 75% federal and 25% state funding
04:39after every mayor in Queensland wrote to the Prime Minister urging him to reconsider.
04:46Queensland is one of the worst affected states when it comes to natural disasters.
04:50And, of course, Australia is heading into a dangerous El Nino period.
04:54So the Treasurer announcing that news on a Friday as well.
