Card surcharges will be scrutinised under a crackdown aimed at reducing costs for small businesses and customers, as the federal government threatens an outright ban on fees for debit cards.
The Australian Competition and Consumer Commission will be given an extra $2.1 million to probe fees on debit and credit cards.
As Labor faces going to the polls next year in the midst of a cost-of-living crisis, the government has announced its latest measure to try ease pressure off struggling households.
Treasurer Jim Chalmers said the government was prepared to ban debit card surcharging from the start of 2026, pending further consultation by the Reserve Bank of Australia.
The RBA is responsible for regulating the payments system and is conducting a review of merchant card payment costs and surcharging.
Months ago, National Australia Bank boss Andrew Irvine labelled surcharges on purchases made on cards outdated and “outrageous”.
He said surcharging may have been warranted two decades ago, and Australia was experiencing a “two-speed economy”.
Prime Minister Anthony Albanese said the government was waiting on the central bank to finish its work.
“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,” he said.
Dr Chalmers said the crackdown aimed to get a better deal for people while 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,” he said.
