It sure feels like one of those periods where finance stories step out of a theoretical context - the lofty economic ideas that we try to follow along with, but often just seem so abstract and out of reach - and enter our daily rhythms in really tangible ways.

Today’s pair of stories both tick that box. If you pay for your expensive petrol with a debit or credit card, you’re in for quite a treat as you make your way through today’s edition.

Prime Minister Anthony Albanese announced this week the Government will halve the fuel excise over the next three months to lower petrol prices for Australians.

The price of petrol has increased significantly over the past month due to the U.S-Israel war with Iran, which has impacted global supply of oil.

Opposition Leader Angus Taylor urged the Government to adopt this policy last week.

The fuel excise is effectively a tax on petrol. It has existed since 1901. Currently, consumers pay 52.6 cents per litre of petrol in tax for both petrol and diesel.

(Note: The fuel excise is technically paid by the manufacturers, but they ‘pass it on’ to the customer.)

In March 2022, the then-Coalition Government halved the fuel excise for six months as a cost-of-living measure.

At the time, the excise was 44.2 cents, so the discount lowered it to 22.1 cents.

On Monday, Albanese said the Government would halve the fuel excise on petrol and diesel over the next three months.

The cost of fuel will be reduced by 26.3 cents per litre from Wednesday.

“We’re making fuel cheaper today because we understand that Australians are under serious pressure,” he said.

The change to the excise is part of a national fuel security plan, agreed to by the leaders of all states and territories.

“This is overdue relief that will take pressure off the cost of living and help keep supply chains moving ahead of Easter,” Opposition Leader Angus Taylor said in a statement.

“We welcome the national fuel security plan, but the reality is we still do not have a clear plan to get fuel to the servos that have run dry.

“And the Prime Minister still has not ruled out heavy handed mandates that Australians do not want.”

The big question is: when will the digits on the local servo board actually drop?

Treasurer Jim Chalmers has warned drivers not to expect immediate relief at the bowser, saying it could take one to two weeks for fuel price changes to fully flow through.

He said the “full 26” won’t appear from 12.01am tonight, explaining that existing wholesale fuel stocks already sitting in tanks will continue to be sold at the higher excise rate they were purchased at by distributors and major retailers.

Reporting by Annabel Whitehouse.

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_{^{Information is general in nature. Investing carries risk. To find out more, you can visit commsec.com.au}}

Credit and debit card surcharges will be banned from October this year under new rules from the Reserve Bank of Australia (RBA) released this week.

This means that when you tap your phone or pay with a card, you’ll no longer be charged an extra fee.

The RBA has the power to implement these changes directly under its existing regulatory authority, meaning the reforms do not require new legislation to be passed by Parliament.

The change is part of a broader shake-up of the payments system, which will also cut interchange fees (what businesses pay banks).

Surcharges are additional fees applied to a transaction. In Australia, businesses will charge 1-2% in extra fees depending on the card used.

This is because businesses are charged a fee for processing certain card payments, which they tend to pass on to customers.

RBA figures show consumers pay $1.2 billion a year in Australia on card surcharges — around $60 per “card-using adult”. The RBA began looking into card surcharges in 2024 as a way to tackle the rising cost of living.

Debit cards, where consumers use their own money, are cheaper to process than credit cards.

There are roughly four times the number of debit cards than credit cards in Australia, according to comparison site Finder.

However, telling the difference between the two at point of sale is difficult, so most transactions charge a “blended fee” for all card payments.

This creates an issue known as “cross-subsidisation.”

From October, businesses will no longer be allowed to add extra fees when you pay by debit or credit card.

Instead, the RBA expects those costs to be built into advertised prices, meaning what you see on the shelf or menu should be what you pay at the checkout.

However, the RBA says broader changes to fees between banks, card networks and businesses could still influence pricing over time.

What will be done to increase transparency

The RBA is also pushing to increase transparency across the payments system, requiring clearer disclosure of the fees charged by card networks and payment providers. The central bank says this will make it easier for businesses to understand what they are paying in fees, compare providers, and shop around for better deals.

By improving visibility of these costs, the RBA argues it will increase competition in the payments sector and put downward pressure on card payment fees more broadly.

Reporting by Lachlan Keller and Adella Beaini.

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^{Disclaimer: Information is general in nature. Investing carries risk. To find out more, you can visit commsec.com.au}

The head of leading AI company Anthropic is in Australia this week to meet with Treasurer Jim Chalmers and potentially Prime Minister Anthony Albanese, as the company looks to expand its presence locally.

In case you haven’t heard of Anthropic, it is one of the world’s most valuable AI companies, valued at around US$380 billion (about $553 billion). Its chatbot Claude has been positioned as a major competitor to ChatGPT in the AI race.

As Anthropic prepares to open a Sydney office, chief executive Dario Amodei is pitching plans for more data centres and promoting Claude to Australian businesses.

Sources say Australia is attractive due to its political stability and close ties with the United States.

Amodei’s visit comes as debate continues in Australia over the use of copyrighted material in training AI models.

Reporting by Lachlan Keller.