PAYDAY NEWS’ Post

Seems like the federal government is the main beneficiary of this initiative...must be an election coming! As irritating as debit card surcharges may be, a policy scheduled to commence on 1 Jan 2026 is going to do little to combat a cost-of-living crisis that is affecting households now. What it will do though is add further complexity for business owners as they navigate yet another change forced upon them. As SmartCompany highlights in this article, there needs to be a real reduction in the fees paid by small businesses for processing payments to avoid loss of profit or retail price increases. Maybe it would have been better to 'seek out those safeguards' before announcing initiatives that adversely impact SMEs? #smallbusinessowner #smallbusiness

Debit Card Surcharges to Be Banned – What It Means for Your Business! The Albanese government is moving to ban debit card surcharges as part of a broader crackdown on excessive consumer fees, with potential implementation by 2026. This change aims to ease financial pressure on households, but it could impact retailers relying on surcharges to cover payment processing costs. Key Takeaways for Businesses: - Debit card fees will be banned, though credit card surcharges will remain. - Banks and businesses may need to revise payment terminals and pricing plans. - The RBA is reviewing bundled and blended pricing models, which could be banned too. This shift will squeeze many small businesses. Now’s the time to reassess cash flow strategies and cost management. A proactive approach will help businesses adapt and thrive in the evolving payments landscape.

Government Takes Action on ATO Surcharges   Starting 1 January 2025, debit card surcharges on ATO and Services Australia payments will be eliminated. This urgent move follows revelations of illegal fee collections by Commonwealth agencies, dating back decades.   The newly proposed Commonwealth Entities (Payment Surcharges) Bill 2024 will retroactively address this issue, banning the practice while legitimizing past surcharges. Although refunds are not planned, the government aims to ensure taxpayers are no longer burdened with these costs.   🔗 Read more: https://lnkd.in/g9zyYu_7   #TaxReforms #ATO #DebitCardFees #AustralianTaxpayers #FinanceNews #Australia

📍 REMINDER Here's your friendly reminder that EMP payments are due today. (Friday, 07/06/2024) by 14:00 as per SARS cut-off time. Please feel free to contact us should you have any questions, we'd be more than happy to assist you. #TLOKAccountants #AccountingSouthAfrica #AccountingJohannesburg #AccountingBallito #ComplianceReporting #FinancialStatements #ManagementAccounting #TaxationServices #StatutoryServices #BusinessAdvisoryServices #EMP #PAYE

📍 REMINDER Here's your friendly reminder that EMP payments are due today. (Friday, 05/07/2024) by 14:00 as per SARS cut-off time. Please feel free to contact us should you have any questions, we'd be more than happy to assist you. #TLOKAccountants #AccountingSouthAfrica #AccountingJohannesburg #AccountingBallito #ComplianceReporting #FinancialStatements #ManagementAccounting #TaxationServices #StatutoryServices #BusinessAdvisoryServices #EMP #PAYE

📍 REMINDER Here's your friendly reminder that EMP payments are due today. (Friday, 06/12/2024). Please feel free to contact us should you have any questions, we'd be more than happy to assist you. #TLOKAccountants #AccountingSouthAfrica #AccountingJohannesburg #AccountingBallito #ComplianceReporting #FinancialStatements #ManagementAccounting #TaxationServices #StatutoryServices #BusinessAdvisoryServices #EMP #PAYE

📍 REMINDER Here's your friendly reminder that EMP payments are due today. (Friday, 06/09/2024). Please feel free to contact us should you have any questions, we'd be more than happy to assist you. #TLOKAccountants #AccountingSouthAfrica #AccountingJohannesburg #AccountingBallito #ComplianceReporting #FinancialStatements #ManagementAccounting #TaxationServices #StatutoryServices #BusinessAdvisoryServices #EMP #PAYE

#Surcharges #Fees #BureaucratBungling #APSIntegrity * Along with the state governments, recently #NSWGovernment, finally we have been told something we have known for a while, federal bureaucrats have illegally charged billions of dollars in merchant fees. No sackings, no senior exec job loss just new laws to be introduced (see below) * Legal advice provided to Finance Minister Katy Gallagher has confirmed that Commonwealth laws prohibit the government from charging anyone when they pay a tax or fee. But wait, yes like #RoboDebt advice had been received years before, as early as 2016, which stated the practice was illegal #RoboSurcharge * Fees amounting to billions of dollars have been charged over two decades, dating back to the Howard government era, for the use of debit cards to pay for services such as passport renewals, visa applications and tax bills * How did this occur? Bureaucrats not working for the citizen - working for themselves and the coffers of the government of the day * And the government sources say there are no plans to refund people charged extra for using their debit cards * Australian Taxation Office currently charges a 0.4 per cent merchant fee for Visa debit cards and 0.2 per cent for Mastercard debit cards * So what to do...the government says laws will be introduced to put an end to surcharges on debit card payments for services at the #ATO and #ServicesAustralia from January 1 next year. * Oh yes, it is understood the new legislation to be introduced will aim to retrospectively make the fees legal. That's the way...no-one is accountability, job done, good job! Sorry paywalled.

There is some good news here from Australia - but this quote reveals the current limitations of what is being proposed on cash acceptance: “In a move designed to taper the phase-out of cash and ensure those who rely on it can still use it for the near future, the federal government will require certain businesses to take cash payments. But others, including many small businesses, will be exempt from the measure.” Cash CANNOT be phased out - because there are many more people who WANT to use cash, in contrast to the relatively small number of people who RELY on it. In the UK, 81% of the British public recently told LINK Scheme Ltd that they view it as important that they retain the option to use cash. I doubt that percentage would be much different in Australia, if the public were asked the question. Hopefully, as discussions progress in Australia on the implementation of the new cash acceptance regulations, the government can be persuaded to extend compelling cash acceptance to EVERY businesses in the country, so the Australian public get what they really WANT. Payment Choice Alliance

Australia's small businesses aren't the only ones who surcharge to recoup expensive card fees. Big business and governments are doing it too. The chart below comes from Queensland's Department of Transport and Main Roads, but similar information can be found on Federal and State Government sites across the country, including the ATO, as well as airlines, telcos and many others: https://lnkd.in/gwW3aM35 Are the bank providers to these Governments offering least cost routing for debit? Doesn't look like it. Do bank CEOs think this surcharging is unfair and should be banned too? Are they thinking about putting their Government customers on blended/bundled pricing? James Eyers Ellis Connolly Brad Kelly Russell Zimmerman Peter Drennan Gabby Taylor Mark McKenzie (BEng,MBA,GAICD) Theo Foukkare Matthew Addison Luke Achterstraat Council of Small Business Organisations Australia (COSBOA) AACS (Australian Association of Convenience Stores) Australasian Convenience and Petroleum Marketers Association (ACAPMA) Wes Lambert CPA, FGIA, CAE, MAICD The Hon Bruce Billson GAICD Robyn Sanders Stephen Jones Jerome Laxale MP Australian Restaurant & Cafe Association Ian Rogers Andrew Cornell Byron Kaye Peter Ryan OAM GAICD David Inall #payments #SmallBusines