‘Worst Christmas Present’: Commonwealth Bank Criticised for Charging for Cash Withdrawals

Assistant Treasurer Stephen Jones has called on the bank to reverse the decision.

ATM machines are seen outside a branch of the Commonwealth Bank in Melbourne, Australia, on Aug. 8, 2018. William West/AFP via Getty Images

Australia’s assistant treasurer has put pressure on the country’s largest bank after it announced it would begin charging customers a $3 fee for withdrawing cash.

The Commonwealth Bank’s (CBA) new policy applies to over the counter requests, agencies (via Australia Post), and phone banking. However, the bank said the policy it would not apply to “many ATMs across Australia.”

The bank’s decision comes as the Australian government moves to ensure the country’s banks continue to offer cash services.

Meanwhile, CBA will also shift customers from Complete Access accounts to “Smart Access” accounts from Jan. 6. 2025, which includes a $4 fee. The fee is waived if a customer deposits at least $2,000 per month or the customer is under 30 years of age.

“We’ll notify you before switching your account,” CBA said in a notice on its website.

The Commonwealth Bank will not charge fees for withdrawals at “many ATMs across Australia”  including the major banks.

Minister Calls Fee a ‘Tax on Australians’

Federal Labor Assistant Treasurer Stephen Jones called on the bank to reverse its decision.

“I want to say something about an announcement today from the Commonwealth Bank that they intend to charge $3 for Australians to access cash from their bank account at a bank branch or Australia Post,” he told reporters 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.”

Australian Financial Services Minister Stephen Jones speaks to the media during a press conference at Parliament House in Canberra, Australia, on Nov. 7, 2022. AAP Image/Lukas Coch

Jones said the decision appeared to be a “tax on Australians” who demand the right to use their cash, saying the “government won’t stand for it.”

The minister said the government would work to ensure cash was still widely available.

“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.

Meanwhile, Queensland Senator Gerard Rennick responded by reiterating his calls for a publicly-owned bank.

“The only way to stop this behaviour is to have a public bank that doesn’t engage in this kind of extortion,” he said on Facebook.

“Most deposit accounts earn very little interest, yet the banks will relend these funds on at substantially higher rates in the way of loans. By charging fees on top of the profits they already earn, the banks are double dipping.”

CBA shares soared more than 50 percent in the last year to $158.33 a piece, while reporting a cash net profit after tax  of $9.8 billion in the 2024 financial year, down 2 percent on the previous year.

The Epoch Times has contacted the CBA for comment.

Banks Charging for Standard Services

Meanwhile, other banks have also begun charging for withdrawing cash.

Regional player, the Bendigo Bank, also introduced a $2.50 fee from Nov. 1, 2024 for over-the-counter cash withdrawals. However, the charge does not apply for ATM and EFTPOS services.

The bank calls the in-branch fee a “staff assisted service.”

Fellow Big Four bank, ANZ, now also charges between 80 cents and $2.50 for various staff assisted transactions, while Westpac also charges $3 fee on business account withdrawals and deposits requiring staff help.

Federal MPs Now Concerned About Cash

The intervention from the Labor government on cash comes after Jones, along with Treasurer Jim Chalmers, began taking steps to protect the option to use cash for essential items.

“The Albanese government is taking action so Australians can continue to pay with cash for essential items if they want to, while also ensuring an orderly transition to phase out cheques,” the ministers said on Nov. 18.

“People are increasingly using digital payment methods, but there is an ongoing place for cash in our society under the Albanese government.”

It follows a Canstar analysis in October that showed 230 bank branches closed in the 2023-2024 financial year, while 6,000 ATMs have been removed in the last five years.

Liberal MP Rick Wilson raised concerns about the impact of branch closures on regional communities in a submission to a Senate inquiry earlier this year.

“Once a bank goes, a whole range of businesses suffer, bank staff who are often community leaders depart, and the insidious effects of depopulation tend to accelerate,” the MP said.