The Hon Andrew Leigh MP
Assistant Minister for Productivity, Competition, Charities and Treasury
E&OE TRANSCRIPT
RADIO INTERVIEW
ABC RADIO CANBERRA, BREAKFAST WITH ROSS SOLLY
THURSDAY, 1 OCTOBER 2026
SUBJECTS: Scrapping card surcharges; Labor’s fiscal discipline; Productivity
ROSS SOLLY: It’s new world today regarding credit card charges as well. Dr Andrew Leigh is the federal Member for Fenner. Of course, he's also the Assistant Minister for Productivity and Competition. Andrew Leigh, good morning to you.
ANDREW LEIGH: Good morning Ross, great to be with you!
ROSS SOLLY: Yeah. And good to have you on the show as well. So, just remind people from today what changes should they see Andrew Leigh?
ANDREW LEIGH: Well, they should see no more credit card surcharges. So, credit card and debit card surcharges have been banned. And we're also bringing down the interchange fee. So, that'll save businesses, particularly small businesses about $910 million. This means that people find it easier to comparison shop. You won't have a sneaky charge added on at the register. If you see a price on the shelf or on the menu, then that'll be the price at the checkout.
ROSS SOLLY: I know consumers are going to love this, but what about businesses, Andrew Leigh? Because I have heard and there's been reports in the news this morning, you know, for them, they still have to in many situations still have to pay a fee to the banks. So, they have to recoup this somehow?
ANDREW LEIGH: Well, that's the great thing about those interchange fees coming down, Ross. So, for credit cards for example, at the moment, they're capped at 0.8 per cent. That'll come down to 0.3 per cent. For debit cards, it's 10 cents a transaction or 0.2 per cent. That'll come down to 8 cents a transaction or 0.16 per cent. So, bringing down all of those limits means that there's less that can be charged to merchants
ROSS SOLLY: But they still will be. I mean, I know it's only minuscule, but it all adds up, I guess. Would you expect, Andrew Leigh, that in some cases merchants might respond by maybe just jacking up the price of a cup of coffee by 20 cents or something? Do you expect that that could well be a likely outcome?
ANDREW LEIGH: Well, that'll be up to businesses as to how they do that. There's been advice that's come out from the Reserve Bank and from the competition watchdog to businesses as they manage this. Really Ross, this is about price transparency. You get a more competitive market when the price on the menu is actually the price you pay at checkout. This is about consumers not feeling diddled as they get to the checkout and suddenly discover one more fee slapped on the top.
ROSS SOLLY: So, even if they are still paying the same amount, you think that it'll be a lot less tough pill to swallow if they know if it's there on the menu straight away rather than getting up there [to the checkout]. You reckon that'll be okay if they jack another 20 cents on it to cover that surcharge not being there anymore? So be it?
ANDREW LEIGH: Well, the interchange fees coming down should help mitigate that, and that's a considerable decrease. So, the interchange fee for credit cards can be more than halved. That's a very substantial reduction and recognizes Ross, that every method of handling payments has a cost. So, handling cash has a cost and handling card payments has a cost. There isn't a free way for merchants, but this will produce much more of a level playing field, I think, recognising that most transactions these days are done electronically rather than by cash.
ROSS SOLLY: Peter from Cook wants to know, ‘Will interchange fees for AMEX cards come down or will consumers have to subsidise them?’ That's Peter from Cook, and another texter says, ‘Ross, credit card surcharge fee is gone, but my credit card interest rate has gone up!’
ANDREW LEIGH: So, those domestically used credit card fees are coming down and also the foreign ones will also be coming down, the foreign ones will come down from next year. So, there's going to be a considerable reduction in those interchange fees. That means that this is a reform that's good for merchants and also good for customers.
ROSS SOLLY: I did see a couple of reports that some merchants, some businesses, are now thinking about banning certain types of credit cards and also offering incentives for people to use cash. But I mean, that wouldn't be a great outcome would it, if merchants are banning the use of some credit cards to try and avoid having to pay the fee, that wouldn't be a great outcome?
ANDREW LEIGH: Ross, all the time I've been alive there's places that don't accept certain credit cards. You know, if you've got an American Express or a Diners Card, then there's many establishments that haven't accepted them and that's been true since Job was a boy. So that wouldn't be a new development. What this does today is ensures that you don't get sneaky charges added at the checkout. And it comes off the back of a whole host of reforms that we've made to ensure that consumers get a fair deal. The work around shrinkflation in supermarkets, banning price gouging, strengthening the Unit Pricing Code. All of these reforms are about ensuring that our market works more competitively, more fairly and with consumers getting a better deal.
ROSS SOLLY: Mike on the text line says ‘Cash handling definitely isn't cost-free, Ross. It takes a lot to handle, manage, and bank’, says Mike. Just on another quick issue before I let you go, Andrew Leigh.
ANDREW LEIGH: Sure!
ROSS SOLLY: Chris Minns yesterday seemed to be suggesting that, unlike the federal government, he has been very responsible in terms of spending money and always trying to meet their means and not overspend. He seemed to be having a bit of a dig at the feds. Do you think that your government's been responsible in terms of the amount of money you've been throwing around the place, or have you added to the inflation problem?
ANDREW LEIGH: Ross, we've had lower real spending growth forecast over the next couple of decades than we've seen over the last couple of decades. We've delivered two budget surpluses. We've made significant savings. So, just to take your listeners through a few of those: $38 billion saved for our reforms to the National Disability Insurance Scheme, $3 billion saved for the better means testing of the private health insurance rebate so it's based just on income. We've saved billions of dollars in consultants and contractors, and we've saved billions of dollars in ending Inland Rail at Parkes. I suppose…
ROSS SOLLY: But the accusations are still out there that you are helping to drive up inflation. You're not doing enough, you're certainly not doing enough to increase productivity, Andrew Leigh, which seems to be at the heart of what's going on at the moment?
ANDREW LEIGH: Ross, I've got productivity in my title and it's close to my heart. From next year, we ban non-compete clauses which make it easier for workers to move to a better job. National competition policy, which was key to the 1990s surge in productivity is being revamped through reforms that will make it easier to build a house, easier to work for workers to work across borders, easier for firms to operate interstate. So, all of these reforms are focused on boosting productivity. This isn't purely a government task. Productivity isn't just something government slices up and hands out to businesses like a cake. So, it's important for all Australians to be working towards a more competitive economy.
ROSS SOLLY: Alright. So be patient people, would be the message, Andrew Leigh.
ANDREW LEIGH: We have a huge productivity agenda so…
ROSS SOLLY: Alright, let's wait and see. We're going to hold you to account. We will hold you to account, Andrew Leigh, as you know.
ANDREW LEIGH: I’m sure you will Ross.
ROSS SOLLY: Yeah. Good on you. Thank you. Dr Andrew Leigh, who is the Assistant Minister for Productivity and Competition – also the Member for Fenner.
ENDS