“This decision is about putting small business first,” Chalmers said in a statement. “Australian small businesses have said the ATO’s announced timeframe was inadequate and we have taken these concerns seriously and acted on them.”
He said the extension “will provide more time for the ATO to engage with small business and other taxpayers who currently rely on credit cards, provide more detailed information to those affected, and consult on targeted options to support impacted taxpayers”.
The cost will be finalised in the December 2026 mid-year budget update.
What is the card surcharge ban?
Since 1 October, businesses have been barred from adding a surcharge when customers pay with eftpos, Mastercard, Visa or American Express cards.
These payment companies are now allowed to enforce a “no surcharge” rule on businesses (card networks have always preferred to ban surcharges since they discourage card use).