The Albanese government has made a partial retreat on the controversial move by the Australian Taxation Office (ATO) to ban businesses from using credit cards to pay their tax bills.

After a backlash from many small businesses, which complained they needed the option to manage cash flow problems, the government announced on Friday it had “stepped in” to delay the ban until June 30 next year.

This would “ensure a longer transition period before the ATO phases out credit card payments”. During this time, the ATO will explore options to assist small businesses with issues about the arrangements for meeting their tax bills.

The ATO ban, which had been due to start December 1, arose from the Reserve Bank’s prohibition – in the name of transparency – on businesses imposing surcharges on payments made by card.

Some businesses will........

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