Small businesses are paying four times more per transaction when accepting payments than big businesses, according to research by the Reserve Bank.
The study found SMEs pay around 90 cents per transaction, compared to just 20 cents paid by the big end of town.
While this is partly due to economic scale, SMEs pay much higher fees per transaction to accept cards because big companies have access to lower strategic rates based on the higher volumes they process,Fairfax reports.
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In a submission to the Murray financial system inquiry, the central bank said it will consider capping card fees at a lower rate to alleviate the cost burden on merchants.
Hockey flags desire to copy Britain’s “Google tax”
Treasurer Joe Hockey has indicated the Government will follow Britain’s lead in introducing a so-called “Google tax” to crack down on multinational companies that dodge their fair share of tax.
Hockey’s policy team has been briefed by their British counterparts on the specifics of the tax, according to Fairfax.
The news follows the G20 summit which was held in in Brisbane last month, where world leaders made various commitments to crack down on companies shifting their profits into low-tax jurisdictions.
Shares down on open
Aussie shares traded lower this morning, with mixed results from the big banks and falls in mining stocks.
The S&P/ASX200 benchmark was down 31.7 points to 5337.1 points at 12.08pm AEDT. On Thursday, the Dow Jones closed down 0.07%, falling 12.52 points to 17,900.10 points.