Canberra is to crack down on excessive card fees for individuals and small businesses, Picture: stock
The Australian Competition and Consumer Commission (ACCC) is to crack down on excessive card fees.
And debit card fees may be banned by January 1, 2026.
Prime Minister Anthony Albanese says the ACCC will receive $2.1 million to tackle card payment fees and increase education and compliance efforts.
And he says the government is waiting for a Reserve Bank of Australia review now under way before a final decision is made on debit card fees.
“My government’s number one priority is to ease the cost of living for households and businesses; this is another step to protect Australians,” Albanese says.
“That’s why we have announced this additional funding for the ACCC while we wait for further work by the Reserve Bank of Australia.”
Treasurer Jim Chalmers says the move is about a better deal for consumers and reducing costs for small businesses.
“Consumers shouldn’t be punished for using cards or digital payments; at the same time, small businesses shouldn’t have to pay hefty fees just to get paid themselves,” he says.
“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.”
Financial Services Minister and Assistant Treasurer Stephen Jones says the move is about giving 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,” he says.
“This is good news for consumers and for small business owners and will help our payment systems keep up with the digital economy.”
ACCI REACTION
Australian Chamber of Commerce and Industry chief executive Andrew McKellar welcomed the news in an interview on Nine’s Today Show that screened earlier today (October 15).
“I think it’s a welcome move,” he says.
“I think it’ll be good for consumers and it’ll be good for small business.
“This is a move which is about consumers, about individuals, but also small business because in many cases, small businesses are facing these charges, it’s not necessarily linked to the costs of providing the service,” Mr McKellar says.
“In many cases, of course, they’ve got to pass it through.”
