Politics · United Kingdom · 1 hr ago
Minister calls for banks to stop charging small businesses card fees
Australia’s ban on card surcharges took effect on October 1, preventing businesses from adding card payment costs directly to customers’ bills.
Some businesses, including cafes, have responded by raising prices.
Emergency Services Minister Kristy McBain has urged the Reserve Bank to go further and stop banks charging small businesses fees for point-of-sale machines.
She said the Reserve Bank should use its existing powers, rather than relying on new legislation.
The surcharge ban has also led to criticism from businesses, and the Australian Taxation Office delayed plans to stop accepting credit card payments for tax bills until June 2027.
The Australian Competition and Consumer Commission has warned that businesses may recover card processing costs through higher prices.
Opposition Leader Angus Taylor accused the government of sending mixed messages and called for the tax office plan to be scrapped, rather than delayed.
Emergency Services Minister Kristy McBain has called on the Reserve Bank of Australia to stop banks charging small businesses fees for point-of-sale machines.
Her proposal follows the October 1 ban on card surcharges, which prevents businesses from passing card payment costs directly to customers.
Opposition Leader Angus Taylor accused the government of hypocrisy over its handling of credit card payments for tax bills.
The Australian Taxation Office delayed plans to stop accepting credit card payments until June 2027 after small businesses objected.
Business owners also launched a billboard campaign in Canberra opposing what they called the cost of running a small business.
- Who
- Emergency Services Minister Kristy McBain called for the change. Opposition Leader Angus Taylor criticised the government’s handling of card payments.
- What
- McBain called on the Reserve Bank to stop banks charging small businesses point-of-sale transaction fees.
- When
- McBain made the call on Monday, October 12, 2026.
- Where
- Australia. Business owners launched their billboard campaign in Canberra.
- Why
- McBain said banks should absorb the fees associated with point-of-sale machines. She argued the Reserve Bank should act using its existing powers.
Kristy McBain
Angus Taylor
Who should bear card processing costs
Kristy McBain
McBain said banks should absorb point-of-sale fees for small businesses and organisations.
Angus Taylor
Taylor criticised the government’s handling of the costs and said it should scrap the planned ban on credit card payments for small businesses by the Tax Office.
Government’s handling of the issue
Kristy McBain
McBain said the Reserve Bank should act against banks without legislation.
Angus Taylor
Taylor accused Labor of hypocrisy and said it had sent mixed messages to small businesses.
But the RBA should have taken the next step, and that is to ban the on-charging of those point-of-sale machines and the fees associated with that for small businesses and for organisations that use them.
Last week, the Prime Minister said that small businesses needed to absorb it, and then we found out the Tax Office is not going to absorb it.
Not delay it. A delay doesn't cut it. Scrap it.
The Reserve Bank’s ban on card surcharges came into force.
The government delayed the Tax Office’s plan to stop accepting credit card payments for tax bills until June 2027.
McBain called for the Reserve Bank to stop banks charging small businesses point-of-sale transaction fees.
Business owners launched a billboard campaign in Canberra opposing the cost of running a small business.
- Proposed action
- McBain called for banks to stop charging small businesses point-of-sale transaction fees.
- Surcharge ban
- Came into force on October 1.
- Estimated consumer saving
- $1.6 billion annually.
- Tax Office plan
- Credit card payments for tax bills to continue until June 2027.
- Campaign
- Billboards were erected at Canberra Airport.
Sources
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