The Council of Small Business Organisations Australia (COSBOA) has raised concerns about the impact of the ATO’s decision to stop accepting credit card payments after 30 November.
COSBOA CEO Skye Cappuccio said while a relatively small number of small businesses are expected to be impacted, the change could create an additional cash flow challenge for those affected.
“This change comes at a pressured time for small businesses, with many already managing high costs, tight margins and competing financial obligations,” Ms Cappuccio said.
“We understand the ATO’s decision, but it must take a practical and flexible approach as the change is implemented, particularly for small businesses using credit cards to meet payment plan obligations.
“Businesses acting in good faith should be given reasonable flexibility to transition to another payment method without unnecessary disruption or penalties.”
Ms Cappuccio said the change also reinforced the need to make it as simple as possible for small businesses to manage their tax obligations.
“To support administrative ease for small business, the ATO should move as quickly as possible to implement New Payments Platform payment options.”
