ⓒ The Australian News
Australia’s largest bank, the Commonwealth Bank (CommBank), has temporarily suspended plans to introduce a $3 fee for cash withdrawals at its branches. The controversial decision, announced earlier this week, sparked widespread criticism from customers and politicians alike. The bank initially intended to charge the fee to customers with “Complete Access” accounts who switched to the “Smart Access” option.
The government labeled the proposed fee as “unacceptable” and a betrayal of customers. CommBank’s head of retail banking, Angus Sullivan, issued a public apology, acknowledging poor communication surrounding the change. The bank attributed the initial decision to a review of its everyday account offerings, aiming to replace older accounts with newer options. However, the key point of contention was a disparity in fees between “Complete Access” (no cash withdrawal fee) and “Smart Access” ($3 fee).
In a significant reversal, CommBank announced a six-month pause on migrating customers to the “Smart Access” accounts. This affects roughly 10 percent of its customer base, those who use assisted withdrawal services or would be negatively impacted by the change. The bank assures the remaining 90 percent of customers will either benefit from lower monthly fees or remain unaffected.
While CommBank maintains that the pause is based on customer feedback, the intense political pressure undoubtedly played a role. Treasurer Jim Chalmers expressed his satisfaction with the bank’s decision following a meeting with CommBank CEO Matt Comyn. The Finance Sector Union, however, remains unconvinced, calling the temporary suspension a mere “partial backflip” and demanding the complete removal of the proposed fee.
The incident highlights the growing public scrutiny of bank fees and charges. Other major banks, including Westpac, NAB, and ANZ, have confirmed they do not charge customers for in-person cash withdrawals.
