Australia to Ban Debit Card Surcharges by 2026

Australia plans to ban debit card surcharges by January 2026, aiming to alleviate the financial burden on consumers and small businesses. Prime Minister Anthony Albanese highlighted this initiative as a priority to reduce living costs, supported by a $2.1 million funding boost for the Australian Competition and Consumer Commission (ACCC) to enforce the ban. The Reserve Bank of Australia (RBA) estimates these surcharges cost Australians nearly $1 billion annually, as digital payments have surged with declining cash transactions. Critics argue that while large businesses absorb these fees, small businesses and consumers bear the brunt. The proposed ban aligns with efforts in other regions, such as the EU, and is part of a broader review of payment processing fees led by the RBA. Assistant Treasurer Stephen Jones emphasized the need for fair charges, noting excessive fees harm consumers and small businesses disproportionately.