Australia’s Largest Bank to Begin Charging for Cash Withdrawals

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