Weak compliance incentives
Angus Taylor argued the surcharge policy did not create enough incentive for Commonwealth entities to comply, raising a practical implementation concern about whether the framework would work as intended.
Commonwealth Entities (Payment Surcharges) (Consequential Provisions and Other Matters)
Current status
This bill became law on Dec 2nd, 2024.
Policy area
Budget, tax & economy
What does this bill do?
Commonwealth laws that separately let agencies add payment surcharges to some payments are removed for future payments, so one Commonwealth surcharge framework applies instead.
Why was it introduced?
Longstanding Commonwealth surcharges were being charged without clear express legislative authority, leaving past surcharges legally uncertain and future rules split across different laws. This bill backs past surcharges from 1 January 2003, blocks repayment claims by offsetting them with a tax, and removes separate surcharge powers so one Commonwealth framework applies.
Broader context
Since the Reserve Bank began regulating payment surcharging in 2003, Commonwealth entities had long added card surcharges under a patchwork of laws, but the government later concluded the legal footing was not clearly express and wanted a single national-style framework as it weighed wider card-surcharging reform. Introduced after the 15 October 2024 announcement on excessive surcharges and possible debit card changes, the bill validated past Commonwealth surcharges from 1 January 2003, removed separate future surcharge powers and, after Parliament passed it in late November and assent followed on 2 December 2024, left one consistent framework in place.
Key criticism
The main criticism recorded was that the surcharge framework may not give Commonwealth entities enough incentive to comply, weakening its practical effect. That concern came from Angus Taylor, who said the opposition would not oppose the bill in the House but left its Senate position conditional on further talks.
Who supported it?
Hon Dr Andrew Leigh MP introduced this bill. It passed on the voices.
Introduced in House 25 Nov 2024
Passed House 26 Nov 2024
Passed Senate 28 Nov 2024
Became law 02 Dec 2024
Did it become law?
Yes
Became law 02 Dec 2024
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
7 days
From introduction to the latest recorded parliamentary step
Meaning
What does this bill do?
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Commonwealth laws that separately let agencies add payment surcharges to some payments are removed for future payments, so one Commonwealth surcharge framework applies instead.
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Payment surcharges charged or collected by Commonwealth entities from 1 January 2003 are retrospectively backed by law, giving legal certainty about past surcharges.
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If someone could otherwise claim money back because a Commonwealth entityOn this page, this means a Commonwealth agency or body that can charge a payment surcharge if it has the legal power to collect the underlying payment. was not legally allowed to charge a past surcharge, an equivalent tax is imposed and set off against that repayment.
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People will not be able to demand a formal statement of reasons under the Administrative Decisions (Judicial Review) Act when a Commonwealth entityOn this page, this means a Commonwealth agency or body that can charge a payment surcharge if it has the legal power to collect the underlying payment. charges or refunds a payment surchargeThis is the extra amount added to a payment to recover the cost of processing that payment method, such as a card fee..
Show source excerpts
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The Consequential and Other Matters Bill makes various consequential amendments to ensure consistency across Commonwealth legislation by repealing existing provisions that provide authority to charge and collect payment surcharges in relation to certain payments. These consequential amendments only apply in relation to future payments.
Commonwealth Entities (Payment Surcharges) (Consequential Provisions and Other Matters) explanatory memorandum -
The Consequential and Other Matters Bill applies to payment surcharges charged and collected on or after 1 January 2003. This provides legislative certainty in relation to surcharges imposed from when the RBA first regulated payment surcharging. As this maintains the ongoing approach to surcharging by Commonwealth entities, and noting the amount of any surcharge previously paid by any individual is likely to have been minor, this is not likely to materially disadvantage any person.
Commonwealth Entities (Payment Surcharges) (Consequential Provisions and Other Matters) explanatory memorandum -
Where the Commonwealth or a Commonwealth entity would be liable to pay a person an amount as a result the person paying or purportedly paying an amount which a Commonwealth entity charged or purportedly charged as payment surcharge in relation to a base payment which was not a surchargeable payment, that person is liable to pay a payment surcharge tax. The Commonwealth or Commonwealth entity must set off the amount of payment surcharge tax that the person is liable to pay against the liability owed to that person.
Commonwealth Entities (Payment Surcharges) (Consequential Provisions and Other Matters) explanatory memorandum -
The Consequential and Other Matters Bill also amends Schedule 2 to the ADJR Act to provide that a decision by a Commonwealth entity to impose a surcharge, or refund a surcharge, forms part of a class of decisions that are not decisions for which a statement of reasons may be obtained under section 13 of the ADJR Act. The requirement for Commonwealth entities to provide a statement of reasons on request whenever a payment surcharge is charged and collected or refunded would result in a significant, disproportionate and unjustifiable administrative burden given the large number of surcharge payments charged across Commonwealth entities, and the typically small amount of each surcharge. Additionally, any decision by a Commonwealth entity to charge, collect or refund a payment surcharge must take reasonable steps to reflect the whole-of-Government surcharging policy, therefore there is limited discretion for Commonwealth entities when deciding to impose a surcharge in relation to individual cases.
Commonwealth Entities (Payment Surcharges) (Consequential Provisions and Other Matters) explanatory memorandum
Context
Broader context for this bill
Since the Reserve Bank began regulating payment surcharging in 2003, Commonwealth entities had long added card surcharges under a patchwork of laws, but the government later concluded the legal footing was not clearly express and wanted a single national-style framework as it weighed wider card-surcharging reform. Introduced after the 15 October 2024 announcement on excessive surcharges and possible debit card changes, the bill validated past Commonwealth surcharges from 1 January 2003, removed separate future surcharge powers and, after Parliament passed it in late November and assent followed on 2 December 2024, left one consistent framework in place.
- 01 Jan 2003
Reserve Bank regulation of payment surcharging begins
The bill was backdated to this starting point because the explanatory memorandum says it aligns with when the Reserve Bank first regulated payment surcharging and Commonwealth entities' longstanding surcharge practices began operating in that setting.
Commonwealth Entities (Payment Surcharges) (Consequential Provisions and Other Matters) explanatory memorandum ↗ - 15 Oct 2024
Government announces action on excessive surcharges
The explanatory memorandum says the government announced it was addressing excessive surcharges and was prepared to ban debit card surcharging from 1 January 2026, subject to consultation undertaken by the Reserve Bank.
Commonwealth Entities (Payment Surcharges) (Consequential Provisions and Other Matters) explanatory memorandum ↗ - 25 Nov 2024
Government introduces the surcharge bills package
The Assistant Minister said the package would formalise longstanding Commonwealth practice by giving entities express, modernised and consistent authority to keep charging and collecting payment surcharges where they already had authority to collect a payment.
Hansard ↗ - 28 Nov 2024
Parliament passes the bill
Passage through both Houses completed the legislative response that backed past surcharges from 1 January 2003 and cleared the way for a single Commonwealth surcharge framework for future payments.
Parliamentary timeline ↗ - 02 Dec 2024
Royal AssentThis is the final approval that turns a bill passed by Parliament into an Act. makes the surcharge changes law
Royal AssentThis is the final approval that turns a bill passed by Parliament into an Act. turned the bill into an Act, locking in the retrospective validation of past surcharges and the repeal of separate future surcharge powers in other Commonwealth laws.
Parliamentary timeline ↗
Legislative route
How did it move through Parliament?
House Senate
Introduced 25 Nov 2024
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second reading opened 25 Nov 2024
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Second reading debate 26 Nov 2024
The bill reached this recorded parliamentary step.
Sent to Federation Chamber for debate 26 Nov 2024
The bill reached this recorded parliamentary step. For this bill, the Federation Chamber reported back later the same day and the House then completed its remaining formal steps that day.
Referred to Federation Chamber
Federation Chamber debate 26 Nov 2024
The bill reached this recorded parliamentary step.
Second reading debate
House second reading agreed 26 Nov 2024
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
Returned from Federation Chamber without amendment 26 Nov 2024
The bill reached this recorded parliamentary step. The official House record shows the referral out and return both happened on the same day, before the House moved to its final formal votes.
Reported from Federation Chamber
House third reading agreed 26 Nov 2024
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Introduced 27 Nov 2024
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second reading opened 27 Nov 2024
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Senate second reading agreed 28 Nov 2024
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
Senate third reading agreed 28 Nov 2024
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Passed both houses 28 Nov 2024
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
Assent 02 Dec 2024
The Governor-General gave Royal AssentThis is the final approval that turns a bill passed by Parliament into an Act., turning the bill into an Act.
Scrutiny of Bills review 05 Feb 2025
Considered by scrutiny committee (05/02/2025): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 1 of 2025. The committee highlighted the retrospective validation of surcharges from 1 January 2003 and the effect of the bill’s fast passage on parliamentary scrutiny.
Considered by scrutiny committee
APH bill page notes and Scrutiny Digest 1 of 2025Key criticism
The main case against this bill
The main criticism recorded was that the surcharge framework may not give Commonwealth entities enough incentive to comply, weakening its practical effect. That concern came from Angus Taylor, who said the opposition would not oppose the bill in the House but left its Senate position conditional on further talks.
Criticism was limited and focused on implementation incentives rather than rejecting the bill's overall purpose.
Further sources
Votes
Recorded votes
How the bill itself passed
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
Passed House passed the bill
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed
House passed the bill
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Passed Senate passed the bill
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed
Senate passed the bill
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Parliamentary debate
Who spoke, and what they said
Start here — lead voices
Sponsor speech Supports
Andrew Leigh
Leigh supports the bill, saying it will formalise longstanding Commonwealth practice by giving clear, modern and consistent authority for entities to charge and collect payment surcharges.
Read in Hansard ↗ Lead voice Supports
Jenny McAllister
Jenny McAllister says the bill is a consequential measure that supports the main payment surcharges bill by updating and aligning the Commonwealth's authority to collect surcharges.
Read in Hansard ↗ Lead voice Mixed
Angus Taylor
Taylor says the opposition will not oppose the bill in the House, but warns that the surcharge policy does not create enough incentive for Commonwealth entities to comply and says the Senate position will depend on further talks with the government.
Read in Hansard ↗All speeches by bloc
Labor
2 speakers · 3 contributions · 2 support
Labor
2 speakers · 3 contributions · 2 support
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Jenny McAllister ★ Jenny McAllister says the bill is a consequential measure that supports the main payment surcharges bill by updating and aligning the Commonwealth's authority to collect surcharges.
“This Bill makes consequential amendments to support the Commonwealth Entities (Payment Surcharges) Bill 2024.”
Read the full speech in Hansard ↗ -
Andrew Leigh ★ 2 contributions Leigh supports the bill and says it will simply give modernised, consistent legal authority for Commonwealth entities to keep charging payment surcharges where they already have power to do so.
Hansard records 2 separate contributions by Andrew Leigh on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Leigh supports the bill, saying it will formalise longstanding Commonwealth practice by giving clear, modern and consistent authority for entities to charge and collect payment surcharges. He says it is part of a wider package and makes consequential changes to support the companion bill.
“This bill is part of a package of three bills which together will formalise longstanding Commonwealth practice by providing express, modernised and consistent legislative authority for Commonwealth entities to continue to charge and collect payment surcharges where the entity has the legislative authority to collect a payment.”
Read this contribution in Hansard ↗Second reading speech
Leigh supports the bill and says it will simply give modernised, consistent legal authority for Commonwealth entities to keep charging payment surcharges where they already have power to do so. He says it does not add new surcharges and fits the government's broader plan to review and eventually ban debit card surcharges.
“This package of bills supports the government's broader commitment to reviewing and reforming the imposition of card payment surcharges. The government is prepared to permanently ban all surcharges on debit cards from 1 January 2026, subject to further work by the Reserve Bank of Australia and safeguards to ensure both small business and consumers can benefit from lower costs. While the Reserve Bank of Australia completes its important work on the surcharging review on how payment fees can be reduced economy wide, we will stop passing on debit surcharges from the Australian Taxation Office and Services Australia from 1 January 2025. I commend these bills to the House.”
Read this contribution in Hansard ↗
Coalition
1 speaker · 1 mixed
Coalition
1 speaker · 1 mixed
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Angus Taylor ★ Taylor says the opposition will not oppose the bill in the House, but warns that the surcharge policy does not create enough incentive for Commonwealth entities to comply and says the Senate position will depend on further talks with the government.
“The opposition is concerned, therefore, that there are not appropriate incentives to ensure compliance with the surcharge policy, if and when one is made. We will work with the government on this and related issues while acknowledging the context within which this legislation was introduced. We will therefore not oppose the bill in the House and will finalise our position in the Senate based on our ongoing discussions with the government.”
Read the full speech in Hansard ↗
Record
Full record
- Act title
- Commonwealth Entities (Payment Surcharges) (Consequential Provisions and Other Matters) Act 2024
- Act number
- Act No. 103, 2024
- Became law
- 02 Dec 2024
- Takes effect
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- Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent
- Schedule 1 At the same time as the commencement of the Commonwealth Entities (Payment Surcharges) Act 2024, but not at all if that Act does not commence
- Schedule 2, Parts 1 and 2 At the same time as the commencement of the Commonwealth Entities (Payment Surcharges) Act 2024, but not at all if that Act does not commence
- Schedule 2, Part 3 The later of the commencement of the Commonwealth Entities (Payment Surcharges) Act 2024 and the Commonwealth Entities (Payment Surcharges) Tax (Imposition) Act 2024, but not at all unless both commence
- Registered
- 04 Dec 2024
- Administered by
- Department of Finance
- Final law metadata was collected from the APH progress table; commencement rows were parsed from the bill text.
- Status
- Act -- Collected from the APH bill page.
- Originating house
- House of Representatives
- 25 Nov 2024
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 25 Nov 2024
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 26 Nov 2024
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 26 Nov 2024
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
- 26 Nov 2024
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 26 Nov 2024
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
- 26 Nov 2024
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
- 26 Nov 2024
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 27 Nov 2024
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 27 Nov 2024
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 28 Nov 2024
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
- 28 Nov 2024
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 28 Nov 2024
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
- 02 Dec 2024
Assent · Assent
Assent
The Governor-General gave Royal AssentThis is the final approval that turns a bill passed by Parliament into an Act., turning the bill into an Act.
Senate Standing Committee for the Scrutiny of Bills
Considered by scrutiny committee
Considered by scrutiny committee (5 Feb 2025): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 1 of 2025. The committee highlighted the retrospective validation of surcharges from 1 January 2003 and the effect of the bill’s fast passage on parliamentary scrutiny.
APH bill page notes and Scrutiny Digest 1 of 2025