ABC Radio – Impact of RBA’s Proposal to Ban Surcharges
Today, Phillip Di Bella, founder of The Coffee Commune, responded critically to the Reserve Bank of Australia’s proposal to ban debit and credit card surcharges – a move that protects the record profits of Australian banks at the expense of small businesses. While the RBA claims the change would save consumers $1.2 billion annually, Di Bella argues this simply shifts the burden from banks making unprecedented profits to struggling small business owners who will be forced to raise menu prices to cover the fees banks refuse to reduce.
Di Bella contends that instead of addressing the root cause – excessive bank fees that generate billions in profit – this policy protects the banking sector’s revenue stream while forcing small operators to absorb costs they can barely afford. Many small business owners are already earning below award wages and struggling with reduced consumer spending during a cost-of-living crisis, yet banks continue to extract maximum fees from every transaction.
Di Bella calls for the RBA and federal government to challenge the banking sector’s profit-driven fee structure rather than forcing small businesses to subsidize bank profits through hidden price increases. He urges genuine consultation with industry leaders and demands that banks – not small businesses – bear the responsibility for reducing transaction costs that fuel their record-breaking financial results.