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Australia implements card surcharge ban amid business backlash
Australia has implemented a ban on credit and debit card surcharges, effective October 1, aimed at reducing costs for consumers. The government estimates the move will save Australians $1.6 billion and businesses $910 million annually. However, the policy has faced significant backlash from small business owners and political opposition, who argue that businesses will be forced to absorb merchant fees by raising the base prices of goods and services.
In response to the ban, the Australian Taxation Office (ATO) announced it will stop accepting credit card payments after November 30, 2026, stating it is not appropriate to pass merchant fees onto the community. This decision has drawn criticism from the federal Opposition and business groups, who claim it unfairly penalizes small businesses that rely on credit cards for cash flow management.
Meanwhile, major banks are adjusting to the new landscape. Commonwealth Bank (CBA) has reduced its merchant service fee from 1.10% to 0.99%, while Westpac has lowered its rate to 0.79%.
Entities
Anthony Albanese · Australia · Australian Taxation Office · Commonwealth Bank of Australia · Jim Chalmers · Reserve Bank of Australia · Westpac
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Westpac reduced its merchant service fee rate to 0.79%. www.epochtimes.com
- [● 2 SOURCES] The card surcharge ban is expected to save consumers $1.6 billion and businesses $910 million annually. greekherald.com.au
- [○ 1 SOURCE] CBA has lowered its merchant service fee rate from 1.10% to 0.99%. www.epochtimes.com
- [● 4 SOURCES] A ban on credit and debit card surcharges for consumers took effect on October 1. www.epochtimes.com · www.smartcompany.com.au · greekherald.com.au · thenightly.com.au
- [● 3 SOURCES] The ATO will stop accepting credit card payments after November 30 to avoid passing merchant fees to taxpayers. www.smartcompany.com.au · www.prospa.com