Since 1 October 2026, operators, including Management Rights owners, can no longer pass on card surcharges to guests paying by Visa, Mastercard or eftpos. However, merchant fees still apply, meaning businesses now need to absorb these costs unless they’ve been factored into their pricing.
For a management rights business, profit isn't just income. It's also what your business is worth when you sell. Here's what has changed, why it matters, and what to check in your accounts.
What canged on 1 October
The Reserve Bank of Australia (RBA) has ended surcharging on debit, prepaid and credit cards on the eftpos, Mastercard and Visa networks. The RBA found the surcharging framework was no longer doing its job of steering consumers towards cheaper ways to pay.
To offset the change, the RBA has also lowered the caps on interchange fees, which should reduce what businesses pay to accept card payments. That saving only reaches you if your payment provider passes it on.
A few points are worth knowing:
- Other fees are not banned. Genuine booking fees, service fees and weekend or public holiday surcharges are outside the change.
- Renaming the surcharge doesn't work. A card surcharge relabelled as a "handling fee", "processing fee" or "admin fee" is still a card surcharge.
- Other payment types. If you accept American Express or other payment methods, confirm the current rules with your payment provider before charging any fee.
Why this matters more in management rights
In most businesses, a small rise in costs means slightly lower profit. In management rights, net profit is the main driver of what a buyer will pay for your business, so a cost that keeps recurring can reduce your sale price too.
Here's a simple illustration. Say guests pay $800,000 a year in accommodation by card, and your average merchant fee is 1%. Before October, you recovered that $8,000 through the surcharge. Now, unless your tariffs have changed, it's a new $8,000 expense every year, and it will show up in the figures any future buyer or lender reviews.
Your accounting and compliance checklist
- Switch surcharging off everywhere. Check your booking system, online channels, payment gateway, EFTPOS terminals, website and booking terms and conditions. One leftover setting can keep charging guests.
- Review your merchant statements. Work out your effective rate, then ask your provider how the lower interchange caps will be passed on. If you're not getting a fair rate, it may be time to compare providers.
- Rework your tariffs. The RBA expects card costs to be built into the advertised price. Factor your expected card costs into room rates rather than absorbing them indefinitely.
- Update your chart of accounts and budget. Surcharge income is no longer a line in your books. Your forecasts, management reports and budget should reflect the full merchant fee as a cost.
- Check your trust accounting. Guest payments for letting often flow through your trust account. Make sure card payments and merchant fees are recorded and reconciled correctly, and that the treatment matches your letting appointments with lot owners. A clean audit trail matters at audit time.
- Plan ahead if you're selling. Buyers, brokers and financiers will look closely at figures from October 2026 onwards. Accurate, well-explained accounts help protect your price.
How Count Gold Coast can help
Our Management Rights team has built its reputation over more than 20 years, and some of our team have owned management rights themselves. We provide specialist accounting and tax reporting, trust account audits, and independent verification and sales figure reports for management rights businesses.
If the surcharge ban has changed your numbers, we can help you understand the impact on your profit and keep your accounts and trust records in order. Speak with Jonathan Hanaghan, our Principal and Management Rights expert, on 1300 667 897 or at [email protected].
This article contains general information only and does not take into account your personal circumstances. Seek professional advice before acting on it.
Sources
Reserve Bank of Australia – Media release: Review of Merchant Card Payment Costs and Surcharging, Conclusions Paper
Reserve Bank of Australia – Conclusions Paper in brief
Small Business Development Corporation (WA) – Ban on surcharges for debit, credit and prepaid card payments
Stripe – Australia is removing card surcharges
Back to Count Gold Coast