Nat Barr grills Murray Watt over credit card surcharge ban as small businesses warn rising costs have left them at ‘tipping point’

Environment Minister Murray Watt has refused to admit the government got its credit card surcharge ban wrong, despite mounting concerns from small businesses.

Watt was repeatedly pressed by Sunrise host Nat Barr on Friday over growing backlash to the ban, which prevents businesses from passing credit card processing fees directly on to customers.

The Australian Taxation Office has also announced it will stop accepting credit card payments for tax debts from November 30.

Barr challenged Watt over reports the ATO consultation with business groups on this move had been little more than a formality. Watt said the government expected the ATO to properly consult with businesses.

“It’s got to be meaningful, it’s got to involve listening to people, and that’s exactly what we expect of the ATO,” he said.

“I’m aware that the government, through various ministers who are responsible, is still engaging with the ATO about this and I’m sure that those ministers will make their expectations clear.”

“We were very clear with the ATO when they first proposed this that they needed to have a transition plan, that they needed to work properly with the business community, and I’m sure that those expectations will be reinforced,” Watt said.

Opposition deputy leader Jane Hume said small businesses were already struggling with rising costs and warned the surcharge ban could be the “straw that broke the camel’s back”.

“The absurdity of (Treasurer) Jim Chalmers’ credit card surcharge ban is of course that they’re expecting small businesses to absorb ... the increased cost of credit cards but they’re telling the ATO that they can do something different,” Hume said.

Hume pointed to conflicting messages from within the government, including Housing Minister Clare O’Neill saying she had concerns about the ATO’s decision and Cabinet Secretary Andrew Charlton backing it.

“The ATO is a government agency and Murray, you’re the government. You can change this with a stroke of a pen. You can change this with a decision.

“Small businesses are crying out for a change. They are asking for your help.”

Watt rejected the suggestion the government was adding to the pressure on small businesses, arguing payment processing fees had also been reduced.

“We have actually reduced taxes for small businesses and, in fact, the surcharges that small businesses are charging their customers when you go and get your coffee have been reduced under this government,” he said.