Service Charges in Australia 2025: Updates, Examples & What to Watch

Service charges are popping up everywhere—from your local café’s bill to your monthly bank statement. As Australia heads deeper into 2025, these fees are coming under new scrutiny, with regulatory changes and consumer expectations shifting the way businesses apply them. Here’s what you need to know about service charges, how they’re evolving, and how to keep them from quietly eroding your finances.

What Exactly Is a Service Charge?

At its core, a service charge is an extra fee added to the base price of a product or service. Unlike standard prices, which cover the core offering, service charges are often tacked on to cover the cost of things like administration, maintenance, or even simply the ‘service’ of providing the product. You’ll see them in industries as varied as hospitality, real estate, banking, and utilities.

• Hospitality: Restaurants may add a 10–15% service charge for large groups, or as a ‘public holiday’ surcharge—something that’s increasingly common since the pandemic and recent minimum wage increases.
• Banking: Monthly account keeping fees, ATM usage charges, or even digital payment convenience fees.
• Real Estate: Strata levies or body corporate fees, often called ‘service charges’ in apartment living.
• Utilities: Administration or ‘supply’ charges on your energy or water bills.

While some of these are long-standing, 2025 has seen a spike in scrutiny, with the ACCC and state regulators looking more closely at transparency and fairness in how these fees are presented to consumers.

2025 Updates: New Rules, More Transparency

Service charges have long been a bugbear for Australian consumers. The good news: 2025 is bringing new standards for how these fees are disclosed and justified.

• Australian Consumer Law Amendments: From March 2025, all businesses must clearly display any mandatory service charge before purchase—no more hidden fees at checkout. This follows ACCC investigations in 2024 into ‘drip pricing’, where fees were only revealed late in the transaction process.
• Hospitality Surcharges: The Fair Work Commission’s latest wage decision has prompted more hospitality venues to add or increase public holiday surcharges. However, they now must show these charges on menus and receipts, not just in fine print.
• Banking Fees: The federal government’s 2025 Banking Transparency Initiative has forced banks to simplify and standardise how service charges are presented in statements. Many banks have already reduced or eliminated some common fees, but ‘premium’ account and digital convenience charges persist.
• Utilities and Real Estate: State governments are reviewing strata and supply charges, with NSW and Victoria piloting new guidelines requiring clearer breakdowns on bills and levy notices.

Real-world example: In January 2025, a major café chain was fined $120,000 for not properly displaying its 12% weekend service charge, after complaints from hundreds of customers. The incident prompted other venues to rework their signage and menus to avoid similar penalties.

How Service Charges Impact Your Finances—and What to Do

Service charges may seem small, but they add up. A $2 ATM fee, a 10% restaurant surcharge, or a $15 monthly ‘account keeping’ fee can collectively drain hundreds of dollars from your budget each year. With inflation and cost-of-living pressures still high in 2025, being vigilant is more important than ever.

Here’s how to keep service charges from quietly eating into your wallet:

• Read the Fine Print: Always check for service charges before committing to a purchase or booking, especially for dining, travel, or real estate services.
• Ask Upfront: Don’t hesitate to ask staff or providers about additional fees—especially if signage or menus aren’t clear.
• Compare Providers: Whether it’s banks, energy retailers, or property managers, some charge lower (or no) service fees. Use comparison sites or your local consumer advocacy group for up-to-date lists.
• Challenge Unfair Charges: If you spot a charge that wasn’t disclosed, contact the provider. If they won’t budge, escalate the complaint to the ACCC or your state’s consumer affairs body.
• Leverage New Regulations: The 2025 laws mean you have more rights than ever to transparent pricing—don’t be afraid to quote these if you feel a business is being opaque.

For renters and apartment owners, keep an eye on annual strata meetings and levy notices, as these are often where new or increased ‘service’ charges are introduced. Utilities customers should check if there are plans that bundle supply and usage charges more efficiently, potentially saving money over time.

The Bottom Line: Stay Alert and Save in 2025

Service charges aren’t going away—if anything, they’re becoming more common as businesses grapple with rising costs. But with new 2025 laws on your side and a bit of vigilance, you can minimise their impact. Take the time to understand where these fees crop up in your life, and don’t let them slip by unnoticed. Every dollar counts, and in today’s economic climate, that’s more true than ever.