Scott Morrison has offered more details on how the government will crack down on excessive credit card surcharges, a key pillar of its response to the financial systems inquiry.
The government on Tuesday announced that it would support most of the 44 recommendations of the inquiry, headed by former Commonwealth Bank chief David Murray.
Those recommendations include preventing companies from charging over-the-top credit card fees for online or in-store purchases.
On Wednesday, the treasurer outlined how they would achieve that, noting different merchants charged varied amounts for using credit card machines.
Because of the variance, the government would not legislate on a figure or percentage that companies could pass on to customers, opting instead to mandate that companies can charge consumers only what they themselves are being charged to use the machines.
“What we will legislate is the mark up, that you can’t put on a mark up on those charges that you are getting,” Morrison told Channel Seven on Wednesday.
“The business will only able to charge the customer what it’s costing them themselves.
“Some companies will charge up to 10% for that surcharge on what was only costing them half a per cent. So you know, that is a practice that has got to come to an end,” Morrison said.
The government’s economic team engaged in a media blitz to sell elements of the financial system reforms.
The finance minister, Mathias Cormann, told ABC radio companies had been using the “guise” of credit card charges to “impose additional costs”.
The small business minister, Kelly O’Dwyer, told Sky News that the government “is united in this massive win for consumers”.
The government hopes to bring in the changes on 1 July next year.
