Debit card surcharging could be banned by 2026
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The news: Debit card surcharges could be banned within 18 months in the latest pre-election government announcement focused on the cost of living.
The context: The Albanese government says it is “prepared” to ban debit card surcharging from 1 January 2026, pending a consultation process with the Reserve Bank (RBA) — which regulates Australia’s payments system.
But in a bid to crackdown on the problem in the interim, it is allocating another $2.1 million to the Australian Competition and Consumer Commission (ACCC) to go after businesses using “excessive” charges.
And to ease pressure on small businesses, Treasurer Jim Chalmers said it would also move to reduce payment fees.
Chalmers said the measures were necessary because as the use of cash declines, Australians are increasingly “getting slugged” by surcharges for using their own money via electronic payments.
The RBA is undertaking a review of merchant card payment costs and surcharging.
Just months from the federal election, the government has pivoted to cost of living pressures — particularly related to the major supermarkets.
In recent weeks, it announced its new mandatory Food and Grocery Code and unveiled $30 million in extra funding for the ACCC for compliance in the supermarket sector.
And this month it confirmed supermarkets will face bigger fines for ‘shrinkflation’ — reducing product sizes while maintaining or raising their price — after an ACCC inquiry into the sector was warned the practice was rampant.
Prime Minister Anthony Albanese also described Coles and Woolworths’ alleged price gouging, which is under ACCC investigation, as “not in the Australian spirit”.
What they said: “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,” Treasurer Jim Chalmers said.
The source: Prime Minister's Office
