Australians have paid billions of dollars in illegal trader fees for federal government services over the past two decades.
Charges have been imposed for using credit and debit cards to pay for federal services, including passports, visa applications and tax assessments, nine newspapers reported.
The issue came to light after the NSW government became aware that 92 million transactions had racked up $144 million in illegal merchant fees since 2016, prompting an Albanian government investigation into federal payments.
However, Nine says there will be no reimbursement for the micro fees due to the challenges of auditing small merchant fees across government departments for years.
Finance Minister Katy Gallagher said in a statement that the Albanian government would legislate to stop passing on debit surcharges from the ATO and Services Australia from January 1.
“This new legislation will give the Chancellor of the Exchequer the power to quickly and efficiently change Commonwealth surcharge policies, including to prevent Commonwealth agencies from passing on debit card surcharges,” she said in a statement.
‘These bills will not impose new surcharges, but will solve the historic problem of ensuring that existing surcharges are allowed by legislation.
‘While the Reserve Bank completes its important work on the Surcharge Review and how to reduce payment costs across the economy, we will stop passing on debit surcharges from the ATO and Services Australia to ensure these everyday payments will not cost the Australians any more. ‘
Charges apply for using credit and debit cards to pay for federal services, including passports, visa applications, and tax assessments
The practical benefit for Australians is that they save money because they don’t have to pay fees for using their debit card.
Commonwealth law prohibits the government from collecting payment surcharges when people pay a tax or fee, according to legal advice from Ms Gallagher.