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Federal politics live: Labor has 'real concerns' over ATO's decision on credit card payments

Housing Minister Clare O'Neil says the federal government has "real concerns" about the Australian Tax Office's decision to stop accepting credit card payments for tax bills.

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Labor has 'real concerns' ATO's decision not to accept credit card payments: O'Neil

Clare O'Neil says the Australian Taxation Office's (ATO) should resume discussions with the business sector over its decision not to accept credit card payments for tax bills.

The housing minister says Labor has "real concerns" with the ATO's decision to ban credit card payments, following the Reserve Bank's decision to scrap surcharges.

The ATO met with businesses groups yesterday angered by the move, but the department did not budge its decision.

However O'Neil has defended the Reserve Bank's decision to scrap the fees which cost consumers $1.6 billion a year.

"We really want the ATO to go back and talk to business about what they've decided to do here, and think about how they can find a solution that works," O'Neil has told Channel Nine.

"You should not be charged to use your own money, and businesses need to be transparent about how much they're charging for products and services. So this is a really good change the government has made."

Nationals frontbencher Bridget McKenzie says the end of the surcharge won't make make everyday items cheaper.

She says the government needs to direct the ATO to accept credit card payments.

"The prime minister promised that removing the surcharge would make coffees go down. Somehow ebenesco, surchargio, disappearo. Guess what? It doesn't disappear. Businesses are being expected to absorb it," McKenzie says.

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