AUSTRALIA | The Albanese Government has announced measures to tackle unfair and excessive card surcharges, aiming to secure better outcomes for Australians and small businesses at physical and online checkouts.
The Government will provide $2.1 million in new funding to the Australian Competition and Consumer Commission (ACCC) to address excessive surcharging. Additional work is underway to reduce payment fees further.
"We are prepared to ban debit card surcharges from 1 January 2026, subject to further work by the Reserve Bank of Australia (RBA) and appropriate safeguards to ensure both small businesses and consumers benefit from lower costs," said Prime Minister Anthony Albanese.
The Government is responding to a shift in consumer behaviour. More Australians are using electronic payments, and fewer are relying on cash. This transition has led to more customers being hit by surcharges, even when using their own funds.
The RBA, which oversees the payments system, has released its first consultation paper as part of a review into merchant card payment costs and surcharging practices.
"This is all about getting a better deal for consumers, reducing costs for small businesses, and promoting a more competitive payments system," said Treasurer Jim Chalmers.
"Consumers shouldn't be punished for using cards or digital payments, and at the same time, small businesses shouldn't face hefty fees just to get paid."
While the RBA's review continues, the Government is taking immediate steps.
"The ACCC's enhanced funding will help crack down on illegal surcharging practices and increase education and compliance efforts," said Minister for Financial Services and Assistant Treasurer Stephen Jones.
Jones emphasised the importance of fairness: "The surcharges pile up and punch a big hole in the wallets of customers and the takings of small business owners. These actions will give both small businesses and consumers a fairer go."
The funding and proposed reforms align with the Government's broader Strategic Plan for Australia's payments system, which aims to ease consumer costs without creating unintended burdens on businesses or the economy.
"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," said Albanese.
"That's why we have announced this additional funding for the ACCC while we wait for further work by the Reserve Bank of Australia."
"We're prepared to ban debit card surcharges, subject to safeguards that will benefit both small businesses and consumers," added Chalmers.
This initiative is part of the Albanese Government's plan to help Australians earn more, keep more of what they earn, and avoid paying more than necessary.
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