Australia plans to abolish debit surcharges on government payments
- The Albanese Labor government has announced plans to eliminate debit surcharges from the ATO and Services Australia effective January 1, 2025.
- This initiative follows findings of unlawful fee collections by Service NSW and Revenue NSW.
- The government's action aims to reduce financial burdens for Australians and improve compliance with surcharging policies.
Australia has announced significant changes to the charging of debit surcharges for government services. The Albanese Labor government revealed its intention to abolish these fees from the Australian Taxation Office (ATO) and Services Australia, effective January 1, 2025. This decision aims to alleviate financial burdens for Australians, particularly as these surcharges have often been added to government payments. The move follows a recent investigation into unlawful collection of merchant fees by Service NSW and Revenue NSW, prompting a taskforce at the federal level to take action. A proposed legislation, the Commonwealth Entities (Payment Surcharges) Bill 2024, is set to formalize and authorize any such surcharges both retroactively and prospectively. In the meantime, the government is proactively addressing the issue by halting the passing of debit card surcharges to Australians immediately. The practical implication of this legislation is that Australians will save money by not being charged a fee just to use a debit card for government payments.