Card Payment Surcharges Banned in Australia from 2026

[drron]

having helped out at a family owned cafe in Sydney I have witnessed first hand some of the cough and venom aimed at the staff. frankly the business is better off without such customers as the staff are happier and less likely to leave.
A solo medical practice is also a small business and I did see the reverse as I was one who accepted Amex and I didn't charge a surcharge for any card. I know some only came to see me because of that. Some would still complain because I only bulk billed pensioners. I invited those to go elsewhere and see how they fared. I was one of a very few who charged the common fee.

Went out to lunch today to celebrate the King's birthday. Got charged 15% for the PH> Wasn't personally told about the surchrge but it was on the menu. I didn't complain as I knew the staff in QLD get 2.5 times their base pay.

 

[transpactraveller]

Even if Aldi's base prices are slightly lower, Colesworth regularly has points offers for an effective 5%-25% off, plus you can buy a 10% off voucher for $7.

And nobody who is bothered by a 0.5% surcharge at Aldi should be paying directly at Colesworth, given that their gift cards can be regularly obtained for 4-6% off (and you still get credit card rewards when buying the gift cards).

Where do you get the 4-6% off gift cards, I only ever see them around 3%

 

[serfty]

Where do you get the 4-6% off gift cards, I only ever see them around 3%

There are some discount schemes tied to member groups or professional organisations.
More generally, RACV members can get Woolworths gift cards with 4% discount.

NSW and Victorian seniors card holders can get Wish cards with 5% discount.

I have not seen 6% for Woolies available publicly, however.

Everyday WISH Gift Card Deals, Coupon Codes, Prices, Reviews

www.ozbargain.com.au

 

[Mr_Orange]

There are some discount schemes tied to member groups or professional organisations.
More generally, RACV members can get Woolworths gift cards with 4% discount.

NSW and Victorian seniors card holders can get Wish cards with 5% discount.

I have not seen 6% for Woolies available publicly, however.

Everyday WISH Gift Card Deals, Coupon Codes, Prices, Reviews

www.ozbargain.com.au

RACQ:

 

[SeaWolf]

NewsCorp is running multi-day coverage of the surcharge ban and the inability of small business to pay the ATO by credit card as some kind of economy-destroying calamity. Can someone explain to me why small businesses won’t exist if they can’t pay tax by credit card?

They seemed to get by alright back before the ATO started accepting credit card payments in 2009 so I'm sure there's other workable options available to them.

 

[serfty]

RACQ:
View attachment 524065

Much the same as RACV ...

In reality, with Coles and Woolworths, Flybuys and EDR gives another ½%.

(With Everyday Extra and Coles Plus members for their $7 per month get double, so a basic 1% per shop plus one 10% each month capped at $50. (Need to spend at least $140 per month before breaking even on subscription.)

 

[SYD]

RACQ:
View attachment 524065

Same as NRMA also.

I always forget to get some of these….

 

[ChrisFlyer]

Yes. Cash accounting can do this But accruals accounting is the better way to assess how a business is doing. From Xero accounting.

Accrual accounting:

• Records income and expenses when they're earned or incurred, regardless of when cash moves.
• Gives a more accurate picture of your financial position at any point in time.
• Required for Australian businesses with a GST turnover of $10 million or more.
• Better suited to businesses that invoice clients or carry inventory.

Cash accounting:

• Records income and expenses only when cash is received or paid.
• Simpler to manage, especially for very small businesses with straightforward transactions.
• Available to Australian businesses with a GST turnover under $10 million as an option for GST reporting.
• Can give a misleading picture if you have outstanding invoices or unpaid bills.

For most growing small businesses, accrual accounting provides better visibility into your true financial health, even though it takes a bit more effort to maintain.

@Cruiser Elite has given an excellent example.

You can always use accruals basis for financial reporting and cash basis for GST. Best of both worlds for better reporting and ease of cash flow.

 

[Pushka]

They seemed to get by alright back before the ATO started accepting credit card payments in 2009 so I'm sure there's other workable options available to them.

So you don't think the business environment has changed in the last 15 years? And maybe ask why ATO acted to made it possible back then?

You can always use accruals basis for financial reporting and cash basis for GST. Best of both worlds for better reporting and ease of cash flow.

Not heard of this at all. Can you provide a source? Or are you using cash method officially and financial reporting as accruals casually. It requires two different reporting systems and small businesses have enough to do without something like this.

 

[ChrisFlyer]

Not heard of this at all. Can you provide a source?

Our accountants handle it for the business. BAS handled on cash basis, EOFY reporting handled on accruals basis.

 

[SeaWolf]

So you don't think the business environment has changed in the last 15 years? And maybe ask why ATO acted to made it possible back then?

I'm sure the business environment has changed in the last 15 years, just as it was changed by the ATO introducing credit card payments and just as it's being changed now by them removing that, and will continue to change.

The complaints from business is basically that they don't like this particular change. The business landscape changes all the time, regulations, competitors, technology etc. This is just another change, there's no reason to treat this change any differently and there's no reason to think there won't be more regulatory change in the future that they may or may not like.

Businesses have to adapt to regulatory changes all the time, they shouldn't have any particular expectation to think that everything will always be the same as it is now, or that they're entitled to operate in a particular set of eternally fixed circumstances.

 

[CaptJCool]

So you don't think the business environment has changed in the last 15 years? And maybe ask why ATO acted to made it possible back then?

Not heard of this at all. Can you provide a source?

In 2008-9, the conversation about credit card payment inside the ATO involved 2 questions

1. Will this overexpand debt in the private sector?
As it turned out, this didn’t eventuate. The ATOs own debt blew out chronically instead

2. How many late debtors will pay via this method so they can “pay on-time” ?

The question of those who pay ontime didn’t enter the discussion

The ontime payment rates
I’m seeing if they are publicly available somewhere
In the meantime …

https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/tax-professionals-newsroom/our-commissioner-responds-to-your-questions