The corporate regulator has no current plans to stop credit card payments, despite the October 1 ban forbidding surcharges being passed onto customers.
Businesses can continue paying by credit card when registering a name, changing company details, or filing an annual review, the Australian Securities and Investments Commission (ASIC) has confirmed.
The corporate regulator says it has no current plans to stop accepting credit card payments for its wide range of services, despite the October 1 ban forbidding surcharges being passed onto customers.
Related Article Block Placeholder Article ID: 346355
“ASIC does not currently intend to discontinue credit card payments,” a spokesperson told SmartCompany.
That confirmation follows the Australian Taxation Office’s (ATO) previous plan to stop accepting credit card payments for tax obligations past November 30.
The tax agency said without its own ban, it would need to cover some $200 million in card acceptance fees annually, with little choice but to indirectly lump those costs on the Australian public.
Smarter business news. Straight to your inbox.
For startup founders, small businesses and leaders. Build sharper instincts and better strategy by learning from Australia’s smartest business minds. Sign up for free.
By continuing, you agree to our Terms & Conditions and Privacy Policy.
The move proved highly unpopular with some small businesses, which claimed using credit cards for tax purposes helps them smooth out their cash flow.
The federal government last week intervened in the ATO plan late last week, promising an undisclosed amount of funding to help the tax office continue accepting credit cards for the rest of this financial year.
It is unclear precisely how much ASIC will spend on its own credit card acceptance fees, but the spokesperson said the agency will keep a close eye on costs.
“ASIC will continue to review our payment channels to ensure they are fit for purpose, cost-effective and responsive to stakeholder needs,” they said.
“Any future changes will consider customer impacts, operational requirements and government policy.”
Canberra considers credit crunch
The federal opposition has formally called on the government to abandon the ATO’s plan to stop accepting credit card payments, and not simply push its start date into 2027.
But Treasurer Jim Chalmers says the extension will give the ATO and businesses more time to adapt to the change.
Emergency Management Minister Kristy McBain has also suggested the Reserve Bank of Australia could pressure the banks to absorb the costs of merchant card acceptance themselves.
If enacted, that reform could theoretically lower costs the borne by merchants — and agencies like the ATO and ASIC.
Card acceptance costs have also become a matter for state and local governments, which must now consider how those fees fit in their annual budgets.