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Treasurer Jim Chalmers has denied being rolled by Anthony Albanese after the prime minister personally intervened to stop a tax office ban on credit card payments a day before stopgap funding was announced.
After sustained criticism of the government’s handling of the ban on tax bills being paid by credit card, Chalmers last week announced new funding for the ATO to ensure card payments could continue until the end of the financial year.
Albanese has since revealed he acted after discussions with Andrew McKellar, the boss of the Australian Chamber of Commerce and Industry (ACCI), earlier than previously known, prompting suggestions Albanese had undermined Chalmers.
But, when asked if he had been rolled, Chalmers denied the prime minister went over his head to intervene on the ATO’s decision to ban credit card payments.
“If you just let me set it out for you, [the] prime minister and I were in discussions on Wednesday of last week,” he said on Wednesday morning.
“He had a view and I agree with it, that we needed to step in to provide this longer transition period to allow the ATO the time to get it right. We had the same view.”
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Albanese said at Parliament House on Tuesday night that he acted when concerns were raised with him.
“Andrew [McKellar] did text me last Thursday morning and by Friday morning we had an announcement,” he said.
“That was an example of a relationship that takes time to develop. That trust, where you can have a discussion and say ‘it is in hand, I agree with what you are saying and I will get it done’.”
The tax commissioner, Rob Heferen, announced earlier this month that the ATO would stop accepting credit card payments for tax bills from 1 December. The move followed a ban on surcharges announced by the Reserve Bank.
Heferen said continuing to accept card payments would cost the ATO almost $200m a year, as those costs could not legally be passed on to card users.
But some business owners, particularly smaller operators, use credit card payments as a cashflow tool, managing their liabilities by using credit when required. Estimates suggest about 5% of small businesses use credit card payments for tax bills.
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The ATO is an independent authority and the government cannot direct the tax commissioner’s decisions.
Chalmers told ABC radio on Wednesday he was involved in the conversations with ACCI as well, describing the intervention as a joint decision with the prime minister.
“I have an open door. I’ve met with ACCI in recent weeks, in fact, and we were engaging on these issues as well,” he said.
He said he had discussions with Albanese last Wednesday, before he and the assistant treasurer, Daniel Mulino, took a proposal to ministerial colleagues.
The shadow treasurer, Tim Wilson, told News24 the intervention was more evidence of Albanese overriding Chalmers.
“The prime minister has a kink for punishing small businesses and a fetish for humiliating his treasurer,” he said.
“So I say this is a consistent pattern of behaviour where the prime minister constantly goes in, overrides his treasurer, humiliates him in public. I suspect it’s going to sour the relationship somewhat.”
