Rob Heferen told senators he jumped to the conclusion on the credit card ban.
He assumed businesses paying by card were in money trouble. Many were not.
The ATO announced on 1 October that card payments for tax bills would end.
The ATO says accepting cards costs about $200 million in fees each year.
From 1 October, businesses cannot add card surcharges. The ATO could not reprice tax bills.
Cards made up 2.3% of ATO collections. About 5% of small firms paid tax by card.
Builders, accountants and lobby groups called the ban hypocritical and rushed.
Eight days later, Treasurer Jim Chalmers pushed the ban back to 30 June 2027.
That was Heferen's answer when senators asked about the rushed decision.
Senator Jane Hume said the ATO may have bungled the ban. Consultation was missing.
The extension gives businesses time to switch to bank transfers or direct debit.
Get the full timeline, the numbers and what it means for your business.
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