Commonwealth Bank to roll 1.5 million customers into fee-free accounts after major ruling for low-income Aussies
Australia’s largest bank has agreed to roll 1.5 million customers onto fee-free accounts after the competition watchdog ordered major banking changes for Australians facing financial hardship.
Commonwealth Bank will move eligible customers into a “basic” account, which has no keeping fees and offers free banking features, including direct debits, debit card access and unlimited domestic transactions.
Around 1.5 million Commonwealth Bank customers will be moved into a basic account with no fees. AAP
CBA initially attempted to circumvent the Australian Competition and Consumer Commission’s (ACCC) ruling which now requires banks under the Australian Banking Association (ABA) to “proactively identify existing customers who may be eligible for lower-fee accounts and move them unless they choose to opt out”.
CBA had argued in 2025 that fee-free accounts should only be offered to existing customers on an “opt in” basis and wanted to create a new type of account for low-income customers with a $1 monthly fee.
However, the ACCC issued a final determination this week that would require all banks under the ABA to proactively help low-income customers access low-fee and no-fee bank accounts.
“The conditions imposed by the ACCC require banks to offer eligible new customers basic, low or no-fee accounts,” the ACCC said in a statement.
“They also require banks to proactively identify existing customers who may be eligible for lower-fee accounts and move them unless they choose to opt out.”
Banks must also not charge interest on informal overdrafts on basic, low or no-fee accounts, or refund any interest charged.
The ruling is valid for five years and will capture 20 Australian banks.
In a statement to nine.com.au, a CBA spokesperson said the bank supports customers’ access to basic banking services.
“We acknowledge the ACCC’s determination and will implement the recommended outcomes,” the spokesperson said.
Banks must also not charge interest on informal overdrafts on basic, low or no fee accounts. Supplied
ACCC deputy chair Mick Keogh said the new conditions would ensure all low-income customers or those facing hardship can avoid unnecessary fees, not just those who opt-in.
“We want banks to do more than simply make these accounts available,” Keogh said.
“They should actively identify customers who may benefit and make sure they are aware of their options.”
An investigation by the Australian Securities and Investments Commission (ASIC) found that more than 150,000 low-income Australians owned higher-fee accounts despite being eligible for lower-fee alternatives.
These customers were charged $6 million in fees over 12 months.
ASIC chair Sarah Court said the ACCC’s ruling has put customers in a “good place”.
“We think that authorisation with the conditions that they have imposed is consistent with the report we put out in relation to better banking,” Court said.
“The challenge for CBA, I assume, is that they do have a much higher proportion of particularly vulnerable customers – and so, how they engage with and treat those customers really matters.”
An ASIC investigation found more than 150,000 low-income Australians owned higher-fee accounts despite being eligible for lower-fee alternatives. Jim Rice
ASIC also alleged CBA charged $270 million in fees to 2.2 million customers over a five-year period that it claims should not have been charged, according to its Better Banking report released last year.
The bank agreed to partial refunds of around $68 million in goodwill payments to impacted customers.
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