Liberal leader Angus Taylor accused Anthony Albanese of lying after the Prime Minister posted a video on social media boasting that a ban on credit and debit card surcharges would save you money \u201cevery time you tap\u201d and claimed \u201cfrom tomorrow, your morning coffee could be cheaper.\u201d<\/p>\n
Under a rule that began on Thursday, businesses aren\u2019t allowed to charge customers extra for paying by card, whether in person or online.<\/p>\n
With interest rates rising and inflation still high, the government saw the change as an opportunity to deliver positive news for consumers.<\/p>\n
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By continuing you agree to our Terms<\/a> and Privacy Policy<\/a>.<\/p>\n In a promotional video posted on social media, Mr Albanese said card surcharges cost shoppers $1.6 billion a year. \u201cFrom today they\u2019re banned, saving you money every time you tap,\u201d he said.<\/p>\n But the Reserve Bank of Australia, which regulates the payments system, has said that \u201cbusinesses will still incur costs when accepting card payments\u201d.<\/p>\n Mr Taylor said prices would not fall because businesses would have to cover extra bank charges caused by the change and would pass it on to shoppers.<\/p>\n \u201cLies,\u201d Mr Taylor said on X in response to Mr Albanese\u2019s video. \u201cSimply shifting costs around the economy doesn\u2019t make families better off.\u201d<\/p>\n Sydney coffee shop owner and roaster Destiny Choutis said she would reluctantly have to raise prices because about 98 per cent of her customers paid by card and were previously charged an extra 1.3 per cent.<\/p>\n \u201cWe\u2019re trying not to,\u201d she said. \u201cBut of course we\u2019re going to have to.\u201d<\/p>\n \u2018Pack of rottweilers\u2019<\/p>\n Compounding the problem for businesses, the tax office said it would no longer accept payments by credit card.<\/p>\n The Coalition and One Nation immediately called for the decision to be reversed, arguing it was unfair on small operators who often relied on credit to keep their businesses operating.<\/p>\n \u201cThe Prime Minister and Treasurer promised Australians a cheaper coffee,\u201d Senator Hanson said. \u201cInstead, it\u2019s more expensive than the old surcharge, while small business is going to be squeezed by the ATO.\u201d<\/p>\n Shadow treasurer Tim Wilson linked the tax office change to the Budget deficit, which is forecast to be $31.5 billion this year, saying it was part of a broader decision to pursue businesses harder for revenue.<\/p>\n \u201cLabor has set the ATO on to the small businesses like a pack of rottweilers,\u201d he told News24. \u201cBecause they can\u2019t control their spending, so they need to get additional revenue from somewhere.\u201d<\/p>\n Sydney MP Allegra Spender also opposed the change and said she would ask the tax office to reverse it.<\/p>\n \u2018Easy target\u2019<\/p>\n The tax office, which is also not allowed to charge extra for payments made by cards, acknowledged the cost of those transactions would have ultimately be born by taxpayers.<\/p>\n