Card Payment Surcharges Banned in Australia from 2026

[drron]

Seen 3 or 4 Chinese establishments today offering 5% off the menu prices for cash now; more than previously. Many have always preferred cash and usually gave you a discount but more seem to be doing it now. I maybe old fashioned but don't want anyone operating completely in a cash economy although we used to all do that. Everyone should pay their tax, even if they legitimately minimise the amount they pay.

However in such circumstances I am still paying my taxes. What the business owner does is up to them.
Personally I agree with Kerry Packer said many years ago that I don’t think the government does a very good job in spending it.
On top of that I felt that the ATO attitude was reprehensible in banning CC payments.
So I have no problem with what the business owner does with my cash.

 

[Sydney]

It's not my job to concern myself with such matters though. If I'm happy with the price then it's up to the ato to police such things.

Agreed

 

[JessicaTam]

Where did those posts go, there was some good useful info posted that I was quite interested in but when I refreshed the page they all disappeared? Can you share where they were moved to?

They were deleted. I'm sure if you started a similar thread in the correct part of the forum, the same information would soon reappear.

Correct. Off topic posts were deleted.

 

[MEL_Traveller]

Agreed

Disagree!

For any businesses not paying tax it affects us all. And there’s a likelihood there will be parallel breeches like not paying staff the award rates, paying them in cash, not having full employee protections, or paying super.

And if it is all above board, why the 5% discount for cash, it should only be 1% at most. So they’re ripping off people using CCs.

 

[Pushka]

Disagree!

For any businesses not paying tax it affects us all. And there’s a likelihood there will be parallel breeches like not paying staff the award rates, paying them in cash, not having full employee protections, or paying super.

And if it is all above board, why the 5% discount for cash, it should only be 1% at most. So they’re ripping off people using CCs.

There are way more things that happens with our collected (or non collected) tax money that bothers me more than this. Employee issues of course but that happens across the board. Even in large corporations.

I didn't feel ripped off with the 5% discount as the price I paid using credit card was the same I'd always paid.

 

[Sydney]

Disagree!

For any businesses not paying tax it affects us all. And there’s a likelihood there will be parallel breeches like not paying staff the award rates, paying them in cash, not having full employee protections, or paying super.

And if it is all above board, why the 5% discount for cash, it should only be 1% at most. So they’re ripping off people using CCs.

But you DO NOT know if they're paying tax or not and it's none of our business.
*Politicians pork barrelling, misappropriating and wasting our taxes are however our business.

 

[MEL_Traveller]

But you DO NOT know if they're paying tax or not and it's none of our business.
*Politicians pork barrelling, misappropriating and wasting our taxes are however our business.

But the. We have two problems, not one.

Agree government spending can be an issue. But that shouldn’t permit a multitude of other potential breeches.

Either way, don’t see how the shop comes out looking good? They’re either pocketing the cash - OR - overcharging for the true cost of the credit card surcharge. It doesn’t cost them 5% to process a credit card!

 

[306]

Either way, don’t see how the shop comes out looking good? They’re either pocketing the cash - OR - overcharging for the true cost of the credit card surcharge. It doesn’t cost them 5% to process a credit card!

Maybe, maybe not, but what you have to understand is giving a discount, whether it is a cash discount, free 5th coffee, whatever, is marketing, it is an added cost to doing business, and it is a tried and proven method to draw additional traffic and customers, and tax avoidance or not, it is a legit ploy to attract customers. As so many examples in this thread have already shown.

Edit - to add to this, hey they keep on having 50% off sales, clearly they are pocketing the money and can afford to reduce the prices to reflect the true cost, why is it rightto have occassional 50% sales, and wrong to have constant 5% off cash sales....

 

[MEL_Traveller]

Maybe, maybe not, but what you have to understand is giving a discount, whether it is a cash discount, free 5th coffee, whatever, is marketing, it is an added cost to doing business, and it is a tried and proven method to draw additional traffic and customers, and tax avoidance or not, it is a legit ploy to attract customers. As so many examples in this thread have already shown.

Agree. So why not make it 5% off across the board? Or are they not interested in marketing to people who want to pay by card?

With the 5th coffee free… everyone gets it… whether paying by card or cash.

Maybe i’m just not the target market they’re trying to reach… a 5% discount for cash wouldn’t get me through the door.

 

[Sydney]

But the. We have two problems, not one.

Agree government spending can be an issue. But that shouldn’t permit a multitude of other potential breeches.

Either way, don’t see how the shop comes out looking good? They’re either pocketing the cash - OR - overcharging for the true cost of the credit card surcharge. It doesn’t cost them 5% to process a credit card!

Hey @MEL_Traveller, I understand your point. Here's my thinking - it obviously is worth 5% discount to the small business owner for a myriad of reasons, including but not limited to paying suppliers, deliverers, purchasing supplies themselves down the road, cash flow management, avoiding money being held 'hostage' by the bank, etc., etc., even if they are are paying tax.

I also personally believe that it is totally inappropriate and incorrect to be judge and jury without a fair trial by inferring tax evasion without evidence. I kinda like the pesky principle of presumption of innocence in a rule of law state such as Australia. Plus, it really is NOOB (none of our business).
Cheers.

*A 5% discount wouldn't get me through the door, but if it's a restaurant we like anyway, with all other things being equal, it might incentivise us to choose it over a place that does not give a discount.

 

[306]

Hey @MEL_Traveller, I understand your point. Here's my thinking - it obviously is worth 5% discount to the small business owner for a myriad of reasons, including but not limited to paying suppliers, deliverers, purchasing supplies themselves down the road, cash flow management, avoiding money being held 'hostage' by the bank, etc., etc., even if they are are paying tax.

I also personally believe that it is totally inappropriate and incorrect to be judge and jury without a fair trial by inferring tax evasion without evidence. I kinda like the pesky principle of presumption of innocence in a rule of law state such as Australia. Plus, it really is NOOB (none of our business).
Cheers.

^ absolutely, was going to post similar

Just don't understand why you have such an issue with cash discounts, it's an easy way to focus people on a discount that is likely the minority of transactions in number and value.