RBA Payment Reform Exposes Compliance Issue for Australian Insurance Brokers

Australian insurance brokers are facing a compliance issue as the Reserve Bank of Australia's (RBA) payment reform goes into effect on October 1, 2026. The RBA expects to save businesses $910 million per year in reduced transaction fees, but this figure only accounts for consumer card interchange fees and does not apply to commercial credit cards or American Express.

Brokers who rely heavily on corporate cards will see the surcharge disappear without any corresponding fee reduction. This structural problem is unique to broking practices and requires a more nuanced approach than simply assuming the system-wide saving applies to their own practice, as recommended by NIBA's guidance.

The compliance obligation under existing law means that brokers must map their actual card mix before making any changes. A card fee in a broking practice is not a margin on a product but rather the cost of collecting premium and government charges on behalf of clients. Brokers collectively handled $35.6 billion in gross written premiums through the intermediated channel in FY25, according to NIBA's 2025 research.