The Australian government has announced $2.1 million in funding for the Australian Competition and Consumer Commission (ACCC) to investigate excessive surcharges, with the potential to ban debit card surcharges from January 1, 2026.

The move comes as the Reserve Bank of Australia (RBA) is conducting its own review of merchant card payment costs and surcharging, with the first consultation paper released today. The government aims to reduce payment fees for both consumers and small businesses, but acknowledges the complexity of Australia's payments and surcharging system.

According to Prime Minister Anthony Albanese, "My Government's number one priority is to ease the cost of living for households and businesses, and this is another step to protect Australians."

Treasurer Jim Chalmers emphasised the goal of getting a better deal for consumers and reducing costs for small businesses, stating, “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."

The government is prepared to implement a ban on debit card surcharges, provided the RBA's review supports the move, and safeguards are in place to benefit both small businesses and consumers.

In the meantime, the ACCC will use the $2.1 million in funding to crack down on illegal and unfair surcharging practices, increasing education and compliance activities.

Minister for Financial Services and Assistant Treasurer Stephen Jones believes these actions will give small businesses and consumers a fairer go, reducing the burden of surcharges on both groups.