On Thursday, Melbourne renter Hazel Kearns-Rees received her initial notification stating she was required to opt out of her new membership.
Rental property platforms in Australia are shifting to paid “membership” models or blocking card payments entirely following the Reserve Bank of Australia’s October 1 ban on surcharging.
Platform Workarounds and New Tenant Fees
Following the Reserve Bank’s ban on surcharging from October 1, the rent-tech platform OurProperty stopped accepting direct card payments across the country. Russell Burstow, the founder of OurProperty, said the platform previously charged a 1.95% surcharge and now routes payments through Pay4it, a platform he founded in August that charges its own 1.95% service fees
.
Burstow said OurProperty passed the cost on to tenants because alternatives would involve lifting costs for real estate agencies or stopping card acceptance, which would put customers relying on credit cards into rental arrears. Another platform, Ailo, has also swapped card surcharges for paid memberships. Ben White, the company’s founder, stated that customers would pay the same or less overall and that fee-free options had not changed. Meanwhile, the largest platform, DEFT, blocked debit and credit cards altogether. Macquarie Bank, its owner, pointed out that out of the 1.2m monthly rent transactions it processed, cards represented a mere 2%, while renters retained the ability to pay using PayID, direct debit, and BPAY.
Regulatory Responses in Victoria
OurProperty chief executive Curtis Thomson explained that the Victorian packages incorporated fresh application functionalities rather than substituting previous card surcharges. He stated that Victorian tenants would by default be granted a silver
membership, meaning their real estate agency would have to cover the fees charged for direct debit and automated bank transfer. Direct debit and automated transfer will continue to incur fees on OurProperty outside Victoria.
Deakin University senior finance lecturer Dr Fengfei Li remarked that while the surcharge regulations aimed to alter pricing structures, substituting a membership
title for a charge does not automatically comply with legality.
Political Fallout Over Surcharges
Parliament saw intense debate over the policy as frustrated Labor MPs pushed the federal government to secure a permanent solution allowing the Tax Office to accept credit cards from cash-strapped businesspeople, three days after Treasurer Jim Chalmers delayed the ATO ban. Small Business Minister Anne Aly faced questions in parliament alongside Chalmers, stating that the RBA announced its plan to ban surcharges on March 31, and the ATO decided not to accept credit cards on October 1. Opposition Leader Angus Taylor criticised the administration in the House of Representatives, stating Since Labor came to power, over 50,000 businesses have gone bust
due to unpayable power bills, new taxes, and an unexpected credit card ban.