Australia Moves to Ban Illegal Merchant Fees

The Australian federal government has announced plans to cease illegal merchant fees charged to citizens for government services, a practice that has cost Australians billions over the years. These surcharges were applied to payments made via debit cards for services like passport renewals and tax bills, dating back to the John Howard government era. Finance Minister Katy Gallagher stated that new legislation will be introduced to retroactively legalize these fees, but they will stop being applied to debit card transactions starting January 1, 2025. No reimbursements will be made due to the difficulty in auditing these small charges across various government services. The move follows a significant review initiated after the NSW government uncovered substantial illegal fees, amounting to $144 million from 92 million transactions since 2016. While credit card fees will still apply, the legislation aims to ensure all existing surcharges are authorized by law.