Competition and Consumer Amendment (Payment Surcharges) Bill 2015

Mr HAWKE (Mitchell—Assistant Minister to the Treasurer) (09:26): I want to thank all members who have contributed to this debate in the parliament. It has been a good debate, and a constructive one. Each month, around $45 billion of purchases are processed through more than half a billion card transactions. There is no doubt that consumers and businesses are both better off because of the convenience, security and flexibility offered by cards and other alternative payment methods. This is not to say that merchants do not face additional costs in accepting certain types of payments. Recovering these costs is not unreasonable. Profiteering, however, while pretending to recover costs, is misleading and frustrating for consumers and undermines the efficient operation of the payment system as a whole.

Addressing excessive and unfair payment surcharging by merchants is an important part of the government's financial system agenda in response to the Financial System Inquiry chaired by David Murray AO. The inquiry highlighted that this is an important issue from both a consumer fairness and a system efficiency perspective. Surcharging of payments allows merchants to send a price signal about the relative costs of different payment methods. However, a surcharge is excessive when it is above the costs incurred by the merchant for accepting that payment. Excessive surcharges, sometimes up to 10 per cent or more, have generated substantial angst in the community.

This bill gives effect to the government's commitment to ban these excessive payment surcharges by merchants by amending the Competition and Consumer Act 2010. It also gives the Australian Competition and Consumer Commission the powers to enforce that ban with its usual suite of powers provided in the Competition and Consumer Act 2010. These excessive surcharges can give consumers a false impression that certain payment methods cost more than they actually do. The community raised concerns through the Financial System Inquiry that merchants are profiteering from excessive surcharges. As a result of the measures in this bill, the Australian Competition and Consumer Commission will be well placed to respond to excessive surcharges by merchants and protect the interests of customers.

As new, smart and innovative methods of payment are developed and rolled out in this digital age, the government wants to make sure that Australia has a system in place whereby it can compete on a level playing field. Innovations should not be subjected to inaccurate overstatements of their true costs to ordinary Australians through excessive surcharging. I commend this bill to the House.ll, the Australian Competition and Consumer Commission will be well placed to respond to excessive surcharges by merchants and protect the interests of customers. As new, smart and innovative methods of payment are developed and rolled out in this digital age, the government wants to make sure that Australia has a system in place whereby it can compete on a level playing field. Innovations should not be subjected to inaccurate overstatements of their true costs to ordinary Australians through excessive surcharging. I commend this bill to the House.