Live: Minister moves to smooth over government response to ATO payment change

Pat Conroy has moved to smooth over the response from Labor ministers about the Australian Tax Office's (ATO) decision to stop accepting credit card payments.

The ATO has maintained its position to stop accepting credit card payments for tax bills from December 1, after the Reserve Bank banned on credit card surcharges from the start of this month.

Yesterday, Clare O'Neil told Channel Nine that Labor has "real concerns" about the ATO's decision to end credit card payments.

"Small businesses across the country really struggling to manage their cash flow," she said yesterday.

But soon after, Assistant Minister Andrew Charlton told ABC Radio Labor supported the ATO's decision to ban credit card tax payments.

The defence industry minister has defended the end of credit card surcharges on Channel Nine this morning, but says its up to the ATO to work with businesses to find a solution.

"What Labor ministers have been doing is appropriately urging the ATO to consult with small businesses. This is about transparency for consumers. That's what the broader decision is about," Conroy says.

"But the broader point is there, consumers want transparency. When I go to a shop, the price should be the same whether I pay with cash or card, so that people know that going in. And that's what the decision from the Reserve Bank is all about."

Shadow Treasurer Tim Wilson says there's "open warfare" in the government over the ATO's decision.

"I guess the question is who is actually in charge at the moment. The prime minister and the Pacific, we've got the treasurer off in Japan," he says.