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{{propApi.successMessage}} {{region}} Change locationGovernment provides breathing space for builders and tradies on ATO credit card ban
Government provides breathing space for builders and tradies on ATO credit card ban
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The Government has announced the ATO will continue to accept credit card payments until the end of the financial year, postponing the changes that were due to take effect on 1 December.
HIA Chief Executive Industry & Policy Simon Croft said the decision was a sensible response to the strong concerns raised by small businesses across the residential building industry.
"This announcement provides some much-needed breathing space for builders, tradies and suppliers.
"Thousands of small businesses have spoken up about the impact this proposal would have on their ability to manage cash flow and meet their obligations.
“For many businesses, access to credit card payments is not about convenience, it is an important tool for managing cash flow."
Mr Croft said HIA had strongly argued the proposed changes needed to be reconsidered, or at the very least delayed, to allow proper consultation on a long-term alternative.
"We welcome the Government stepping in before these changes took effect and recognising the concerns being raised by small business and for taking a practical approach and providing certainty while a longer-term solution is considered."
Mr Croft said the extension should now be used to develop a coordinated whole-of-government approach to business payment arrangements.
"This is a welcome reprieve, but there is more work to do.
"The extension provides the breathing space needed to work through a permanent solution that balances the needs of government with the operational realities facing small businesses.
"There must be genuine consultation with industry and a whole-of-government approach to payment systems and business obligations, rather than changes being implemented in isolation.
"Builders and small businesses continue to face significant cost pressures and increasing compliance burdens. Government policy should support businesses to meet their obligations, not make it harder.
"HIA will continue to work constructively with government to ensure any long-term solution recognises the needs of builders, tradies and suppliers and avoids creating unnecessary financial pressure on the businesses building Australia's homes."
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