Reducing card surcharges for Australians and small businesses

The Albanese Government is cracking down on unfair and excessive card surcharges to get a better deal for Australians and small businesses at the physical and online checkout.

Today the Government is announcing $2.1 million of new funding for the Australian Competition and Consumer Commission (ACCC) to tackle excessive surcharges, with further work underway to reduce payment fees.

The Government is prepared to ban debit card surcharges, subject to further work by the Reserve Bank of Australia (RBA) and safeguards to ensure both small businesses and consumers can benefit from lower costs.

The declining use of cash and the rise of electronic payments means that more Australians are getting slugged by surcharges, even when they use their own money.

The RBA is responsible for regulating the payments system and is undertaking a Review of merchant card payment costs and surcharging, with its first consultation paper released today.

The Albanese Government is working to reduce payment fees for small businesses and consumers.

We are prepared to ban debit card surcharging from 1 January 2026, subject to the consultation undertaken by the RBA, and sufficient steps and safeguards to ensure both small businesses and consumers can benefit from lower costs.

Australia's payments and surcharging system is incredibly complex. The RBA's Review is an important step to reduce the costs small businesses face when processing payments.

We want to ease costs for consumers without added costs for small businesses, or unintended consequences for the broader economy.

While the RBA's review is underway, we're taking immediate action on excessive surcharging to save people money.

This funding will enable the consumer watchdog to crack down on illegal and unfair surcharging practices and increase education and compliance activities.

The funding and further work we've announced today complements our Strategic Plan for Australia's payments system(link is external) and is another part of the Albanese Government's plan to help Australians earn more, keep more of what they earn - and not pay more than they should.

Quotes Attributable to Prime Minister Anthony Albanese:

"My Government's number one priority is to ease the cost of living for households and businesses, and this is another step to protect Australians.

"That's why we have announced this additional funding for the ACCC while we wait for further work by the Reserve Bank of Australia."

Quotes attributable to Treasurer Jim Chalmers:

"This is all about getting a better deal for consumers, reducing costs for small businesses and promoting a more competitive payments system.

"Consumers shouldn't be punished for using cards or digital payments, and at the same time, small businesses shouldn't have to pay hefty fees just to get paid themselves.

"We're prepared to ban debit card surcharges, subject to further work by the Reserve Bank and safeguards to ensure small businesses and consumers can both benefit from lower costs."

Quotes attributable to Minister for Financial Services and Assistant Treasurer Stephen Jones:

"These actions will give small businesses and consumers a fairer go.

"The surcharges pile up and punch a big hole in the wallets of customers and the takings of small businesses owners.

"This is good news for consumers and for small business owners and will help our payment systems keep up with the digital economy."

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