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Donovan Castelyn, Senior Industry Fellow - Taxation and Director of the UTAS Tax Clinic, University of Tasmania

Some small businesses are paying tax bills with credit cards. What will happen when they can’t?

Luke Chan/Getty

From December 1, Australians will no longer be able to pay their tax bills directly to the Australian Taxation Office (ATO) using credit cards.

It appears to be a classic case of unintended consequences. New rules – which came into force at the start of this month – prohibit businesses from using surcharges to pass on card payment fees. But the costs of accepting card payments haven’t vanished, and someone has to foot the bill.

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