EDITORIAL: Cracks beginning to show in Albanese’s team

It seems not even a week can pass without some sort of problem for the Albanese Government.

For example: Broken-promises fallout, Budget backlashes and backdowns, inflation, interest rates, house prices, disappearing consumer confidence, Albanese gaffes.

Some of them are linked to global events, but many, if not most, of the problems are self-inflicted.

To the list we can now add the fallout from changes of policy around credit cards.

A ban on credit and debit card surcharges kicked in last week, meaning businesses aren’t allowed to charge customers extra for paying by card.

In a promotional video posted on social media, Anthony Albanese boasted how shoppers would save money “every time you tap”.

“Whether you’re at the supermarket, paying bills or buying a cup of coffee, the price you see is the price you pay,” he said.

But the Reserve Bank of Australia, which regulates the payments system, has said that “businesses will still incur costs when accepting card payments”.

Many businesses have warned they cannot simply absorb the cost and have little choice but to raise prices in response.

In a double whammy for businesses, the Australian Taxation Office said that from December 1 it would no longer accept payments by credit card, which raised concerns for the fate of small operators who often rely on credit to keep their businesses going.

Unity and discipline has long been a hallmark of this Government.

Ministers have routinely gone out to parrot approved lines, including in defence of the indefensible such as Mr Albanese’s infamous “Kylie” and “Melongate” podcast gaffe.

On Wednesday Defence Minister and Deputy Prime Minister Richard Marles — considered a potential future Labor Party leader — spoke glowingly about the Government’s “unity and purpose”.

The Government was “as unified as any point in time since I’ve been in Parliament,“ he said.

On Thursday that unity cracked.

Housing Minister Clare O’Neil said the Government “does have some real concerns about what the ATO is proposing to do here”.

“We really want the ATO to go back and talk to business about what they have decided to do here and think about how they can find a solution that works for everyone.”

It came after Small Business Minister Anne Aly had urged the ATO to “keep talking with small businesses” and “find a way forward”.

“I’ve spoken to small businesses and they were rightly shocked by this decision, and I do think they should have been consulted,” she said.

But Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton, often touted as a future treasurer to replace Jim Chalmers, declared his support for the ATO’s credit card payment ban, arguing the tax office offered flexible payment plans to deal with cashflow shortfalls.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar said the ATO had refused to budge at a meeting on Wednesday.

Running a small business can be all-consuming.

The changes they are having to deal with will add to their burden and associated stress.

And it adds up to an impression that the Government simply does not understand small business.

Responsibility for this editorial comment is taken by Editor-in-Chief Christopher Dore