The Surcharge Ban: A $910M Hit to Aussie Venues (And How to Offset It)

In the Australian hospitality industry, profit margins are a game of millimetres. Most venues operate on a razor-thin net profit of 3% to 5%. In 2026, the Albanese Government and the RBA have just handed down a reform that effectively shaves off another layer of that margin: The ban on debit and credit card surcharges.

Starting 1 October 2026, the ability to pass on merchant fees to your customers for eftpos, Visa, and Mastercard transactions will disappear.

For the 16% of Australian businesses currently surcharging, this isn't just a "policy change"—it is a direct hit to the bottom line. The RBA estimates this reform will save consumers $1.6 billion annually, but it shifts a $910 million cost burden back onto merchants

Here is the no-nonsense breakdown of what is changing, what isn’t, and how to protect your profit.

What’s Actually Changing?

The RBA's reform package is a three-pronged shift designed to increase "price transparency."

1. The Ban: From 1 October 2026, you can no longer apply a percentage surcharge to card payments. Whether it’s a flat 1.5% or a "cost of acceptance" fee, it’s gone for the major networks (eftpos, Visa, Mastercard).
2. Lower Interchange Fees: To soften the blow, the fees you pay to banks are being capped lower. Credit card interchange will drop from 0.8% to 0.3%. Debit fees will drop to 8 cents or 0.16% (whichever is lower).
3. Transparency: Banks and payment providers will be forced to be clearer about their fees, making it easier for you to shop around for a better deal.

The Nuance: What stays?

It is important to note what this ban doesn't cover.

• Weekend and Public Holiday Surcharges: These are governed by Fair Work to offset penalty rates, not payment processing. You can (and should) continue to use these to manage your labour costs.
• Amex and BNPL: For now, the ban doesn't explicitly cover American Express or Buy Now, Pay Later services like Afterpay, though the RBA is keeping them under review.

The Profit Gap

Even with lower interchange fees, the math doesn't always square. If you were surcharging 1.5% to cover your total merchant service fee, and your new "capped" cost is 0.5%, you are still absorbing a 1% cost increase across every single card transaction.

In a venue doing $1M a year in card sales, that is $10,000 in pure profit gone.

You have two choices:

1. Raise Menu Prices: The Australian Restaurant and Cafe Association predicts widespread price hikes on 1 October 2026 as venues try to bake the cost into the product.
2. Cut Overheads: If you can’t charge more, you have to spend less.

The Play for 1 October 2026

You can't control the RBA, and you can't control the banks. But you can control your tech stack.

By switching to Shiftly’s free platform, most Australian venues can save enough on software subscriptions to completely offset the cost of absorbing card surcharges.

• Roster for free.
• Track time for free.
• Automate awards for free.
• Push to Xero for free.

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Stop subsidising legacy software companies while the government squeezes your margins. Use the tech to save the money, then put that money back into your kitchen, your team, and your survival.

‍Don’t let the surcharge ban eat your profit.Join Shiftly for free and eliminate the SaaS Tax today.