Labor, Liberal MPs Call on Commonwealth Bank to Reverse $3 Cash Withdrawal Fee
The $3 fee applies to withdrawals at a bank branch, but not at the ATM.
Finance Minister Katy Gallagher has joined the chorus of government ministers calling on the Commonwealth Bank of Australia (CBA) to reverse its $3 (US$1.95) cash withdrawal fee.
The fee applies to withdrawals at the branch, through agencies such as Australia Post, and over the phone. However, it does not apply to cash withdrawals from ATMs.
Gallagher indicated the government is paying close attention to the decision and urged a rethink just before Christmas.
“So we’re having a close look at this. I would really think that some goodwill here just before Christmas is for the CBA to have a think about the announcement that they made yesterday.”
Liberal Minister Agrees
Meanwhile, Shadow Energy Minister Ted O’Brien also backed calls for the CBA to reverse the decision, raising concerns about elderly Australians.
“I’m thinking about those same senior citizens who are struggling because, all of their life, they’ve become accustomed to walking into a branch,” he said on the ABC.
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“I think, for them to be stung by $3 is certainly worthy of a serious rethink on behalf of the bank.”
This comes after Assistant Treasurer Stephen Jones called on the bank to reverse its decision on Dec. 3.
“This is a kick in the guts for ordinary Australians and the worst Christmas present imaginable. Commonwealth Bank has to rethink this terrible decision,” he told reporters.
The assistant treasurer explained the decision appeared to be a “tax on Australians” who demand the right to use their cash, and said the “government won’t stand for it.”
He added that the government would work for Australians to ensure they could continue to use cash.
“But if they don’t use cash and they want to use a debit card for their everyday transactions, they should be slogged with a surcharge for doing it, and if they want to go in and see their bank branch, we think Australians should have access to banking services wherever they live,” he said.
What Is Going On?
The CBA will shift customers from Complete Access accounts to “Smart Access” as part of its move to charge $3 withdrawal fees.
The withdrawal fee will be waived for customers under 18 or those with an aged, disability, or war veterans pension.
“There’s no need for you to do anything, as your Complete Access accounts will automatically change to Smart Access accounts. We’ll notify you before switching your account,” the CBA said on its website.
The CBA is not the only bank charging fees for withdrawals.
On Nov. 1, ASX-listed Bendigo and Adelaide Bank introduced a $2.50 fee for over-the-counter cash withdrawals, not including ATMs. ANZ and Westpac also charge fees for “staff-assisted” transactions on business accounts.
More Reactions to the Move
Meanwhile, advocacy group “Cash Welcome” expressed anger at the bank’s decision in a post to social media on Dec. 4.
“This an obscene money grab against the people who can least afford it. Shameful.”
Queensland Senator Gerard Rennick also weighed in on Dec. 3, pushing for establishing a public bank.
Commonwealth Bank shares are currently down nearly 1 percent on the market at the time of writing on Dec. 4. However, the bank’s share price has soared nearly 49 percent in the past year.
In the 2024 financial year, the bank reported a $9.8 billion annual cash net profit after tax, 2 percent lower than the prior corresponding period.
“Now, we’re investing in becoming a digital bank by delivering simple products and new digital experiences nationwide,” the bank said.
