In a stunning display of "we're from the government and we're here to help - eventually," Treasurer Jim Chalmers announced on Friday that a controversial ban on credit card payments for tax bills will be delayed by more than six months, following an outcry from small businesses who apparently enjoy using credit cards to pay their taxes.

The Australian Taxation Office (ATO) will continue to accept credit card payments via third parties, as well as other free and low-fee methods like debit card and bank transfers, from July 2027. Yes, that's a date far enough in the future that we can all pretend it's someone else's problem.

The drama began in early October when tax commissioner Rob Heferen announced the ATO would stop accepting credit card payments for tax bills starting 1 December, citing costs of almost $200m a year - costs that can no longer be passed on to card users. Because nothing says "efficient tax collection" like eating a $200m annual bill.

But some business owners, particularly smaller operators, use credit cards as a cashflow tool, managing liabilities by floating on credit when necessary. Estimates suggest about 5% of small businesses use credit card payments for tax bills. That's a small percentage, but apparently a loud one.

Government ministers had spent the week pressuring the ATO to change its position, despite the ATO being an independent authority that the government cannot directly order around. It's like watching someone try to steer a car from the passenger seat - with words, not a steering wheel.

"We've stepped in to ensure that the tax office can take credit card payments until the end of June next year," Chalmers said on Friday. "This will give them the time to consult more with small business and to get it right, this recognises the really important contribution that small businesses make to our local communities and to our economy more broadly."

Chalmers added, "Now we try not to interfere with the RBA or the ATO when they go about designing and implementing this surcharge ban, but it's really important that we have stepped in today to make it possible for the ATO to continue to take credit card payments until the end of the financial year." Translation: we totally didn't interfere, except when we did.

Australian Chamber of Commerce and Industry boss Andrew McKellar said the delay provides "much needed breathing space for small business." "It is reassuring to see some sense prevail on the credit card ban for now," he said. "This is a win for small business and a welcome reprieve, but small businesses remain under significant pressure." So enjoy your temporary stay of execution, small business owners - the pressure cooker is still on.