The Australian Competition and Consumer Commission received AU$2.1 million of new funding from the Albanese government to tackle "unfair and excessive card surcharges," the government said in a statement on Tuesday.

The government said it is ready to ban debit card surcharges starting Jan. 1, 2026, subject to consultation by the Reserve Bank of Australia. It is also eyeing to reduce other payment fees.

The move aims to lower the extra charges incurred by consumers via electronic transactions without passing the burden onto businesses, the government said.

Payment service providers' shares fell after the announcement, with Tyro Payments (ASX:TYR) tumbling almost 11% in recent Tuesday trade. Smartpay Holdings' (ASX:SMP, NZE:SPY) shares slid 11% in Australia and 5% in New Zealand.