You might think your bank account is straightforward — money in, money out, a few fees here and there. But recent figures show that between July 2019 and October 2024, Commonwealth Bank charged roughly $270 million in account-keeping, dishonour, and overdraw fees to about 2.2 million low-income customers. That’s not a rounding error. That’s a pattern that raises real questions about what’s happening inside the banking system right now. Here’s what you actually need to know.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
These numbers come from ASIC reports and consumer advocacy groups, not from bank press releases. The gap between what banks say and what they do is wide enough to walk through. And if you’re an Aussie with a standard transaction account, you might be paying for things you never agreed to. Let’s break down where those fees hide, who’s getting stung, and what you can actually do about it. For a broader look at managing your money in this environment, you might find our guide on surviving the cost of living crisis useful.
What Bank Fees Are Actually Costing You
The core issue here is something called fee harm — a term used by ASIC and consumer groups to describe when banks charge fees that cause financial distress, especially to vulnerable customers. It’s not just about a $5 monthly fee. It’s about the cumulative effect on people who can least afford it.
What I tend to notice is that most people don’t realise they’re being charged until they check. And by then, the bank has already taken the money. The Banking Code of Practice was supposed to fix this, but the numbers suggest it’s not working the way it should. For a deeper look at how technology is changing the way we handle money in Australia, check out our piece on the rise of fintech.
Why These Fees Matter More Than You Think
Bank fees aren’t just an annoyance. They’re a direct drain on household cash flow, and for low-income Australians, they can push a tight budget over the edge. According to the RBA, total bank fee revenue grew 3% over the year to June 2025, with household fee revenue jumping 7%. That growth is driven largely by housing loans and credit cards, not by better service.
Consider this: a single dishonour fee can be $10 to $15. If you’re living paycheck to paycheck, one missed payment can trigger multiple fees — the bank charges you, then charges you again when the next payment bounces. Before you know it, you’re out $50 or more for what was essentially a timing issue. That’s not a service. That’s a penalty on being poor.
The RBA data also shows that credit cards remain the largest source of household bank fees at around 40%. Annual fees are rising, and overseas spending charges are climbing as more Australians travel. Meanwhile, cashback deals on mortgages are being withdrawn, shifting revenue toward break fees and new lending charges. The banks are finding new ways to charge you, even as they claim to be helping.
What’s more, the banking peak body reported that transaction account service fees as a percentage of bank income dropped from 8% in 2004 to 2% in 2024. That sounds good, but it masks the fact that banks saved customers more than $500 million in 2024 by providing no or low fee accounts to vulnerable customers. The question is: why weren’t those customers on those accounts already? If you’re dealing with complex fee issues, sometimes it helps to get a second opinion from a professional. A service like JustAnswer Finance can connect you with experts who understand the fine print.
Where Banks Are Getting It Wrong
Not Telling Customers About Low-Fee Accounts
The Banking Code of Practice has required banks to promote basic, low or no-fee accounts since 2019. But ASIC’s reports show that many eligible customers never get told. CBA, in particular, has only committed to migrating people to nominal-fee accounts and has delayed even that move, waiting to see if the ACCC will force their hand. Other banks have taken an opt-out approach — moving customers automatically and letting them choose to leave. CBA does the opposite.
Charging Fees to People Who Can’t Afford Them
This is the heart of fee harm. ASIC’s 2024 report “Better banking for Indigenous consumers” and its 2025 follow-up “Better and Beyond” both identified that banks were charging fees to low-income and First Nations customers who had no realistic way to avoid them. The result? $270 million in fees from CBA alone, with only $25 million refunded to First Nations customers. That’s a 90% retention rate on money taken from vulnerable people.
Hiding Fees in Fine Print
Annual credit card fees, overseas transaction fees, establishment fees on new loans, break fees when you leave a mortgage early — these are all buried in terms and conditions that most people never read. The RBA notes that cashback deals for mortgages have been withdrawn, shifting revenue to fees from new lending and break fees. So the banks are making it harder to compare costs, not easier.
Delaying Refunds and Migrations
While three of the four banks involved in the initial 2024 ASIC report committed to providing a further $60 million in refunds to over 770,000 customers and moving 820,000 customers to low-fee accounts, CBA has dragged its feet. Consumer advocates like Bettina Cooper from Mob Strong Debt Help have called this out directly: “CBA knows it has unfairly pocketed $270 million in fees and seem comfortable keeping it.”
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| Bank | Fees Charged | Refunds Committed |
|---|---|---|
| CBA | $270M (2.2M customers) | $25M (First Nations only) |
| Other 3 Banks | Not disclosed | $60M (770K+ customers) |
| Total (all banks) | Not fully disclosed | $93M (920K customers) |
If you’re trying to track down what your bank is charging you, a dedicated personal finance planner can help you log fees and spot patterns over time. It’s a simple tool, but it puts the data in your hands.
How to Find and Fight Hidden Bank Fees
Check Your Statements for Recurring Charges
Most people never look at their monthly fee line. Go back six months. Look for anything labelled “account-keeping fee,” “monthly service fee,” or “transaction fee.” If you see a charge every month, that’s a recurring fee you may not have agreed to. Banks are required to disclose these, but they don’t always make it obvious. If you find one, call the bank and ask what account type you’re on. You may be on a premium account when a basic one would cost nothing.
Ask About Low or No-Fee Accounts
The Banking Code of Practice requires banks to offer basic accounts with low or no fees. But they don’t always volunteer this information. You have to ask. If you’re on a low income, a pension, or a government benefit, you’re almost certainly eligible. The bank should move you to a low-fee account without penalty. If they resist, mention ASIC’s 2024 and 2025 reports. That usually gets their attention.
Watch for Dishonour and Overdraw Fees
These are the most predatory fees in the system. A single missed payment can trigger a dishonour fee, then another when the next payment fails. Some banks charge multiple fees for the same transaction. The fix is simple: set up a low-balance alert on your account. Most banking apps let you do this for free. If you’re regularly hitting overdraft, consider linking a savings account as a buffer. Some banks offer this as a free service.
Review Your Credit Card Terms Annually
Credit card fees are the biggest source of household bank fees, making up about 40% of the total. Annual fees are rising, and overseas transaction fees are climbing. If you haven’t looked at your card’s terms in the last year, you’re probably paying more than you think. Call the bank and ask for a fee waiver. If they say no, consider switching to a no-annual-fee card. The RBA data shows that banks are increasing fees on existing products, not just new ones.
- 1Gather Your StatementsPull the last 12 months of bank and credit card statements. Highlight every fee line. Categorise them: account-keeping, dishonour, overdraw, annual, overseas.
- 2Call Your BankAsk for a fee breakdown. Specifically ask if you’re on a low-fee or no-fee account. If not, request a switch. Mention ASIC’s reports if they push back.
- 3Request a RefundIf you’ve been charged fees you didn’t agree to, ask for a refund. Banks have refunded $93 million so far. You may be entitled to part of that.
- 4Escalate If NeededIf the bank refuses, contact the Australian Financial Complaints Authority (AFCA). They handle fee disputes and can force a refund.
For a broader strategy on making your money work harder, our guide on unlocking higher returns in the Australian market covers what to do once you’ve stopped the fee bleed.
Frequently Asked Questions About Bank Fees
Can I get a refund on bank fees I didn’t know about? ▾
What is a low-fee account and am I eligible? ▾
Why is CBA singled out in the ASIC reports? ▾
Do credit card fees count as hidden bank fees? ▾
What should I do if my bank refuses to move me to a low-fee account? ▾
Are business bank fees also a problem? ▾
Stop Paying for What You Never Agreed To
The banking system in Australia has a fee problem, and it’s not going to fix itself. ASIC’s reports have forced some refunds, but the onus is still on you to check your statements, ask the right questions, and push back when something doesn’t add up. The $270 million that CBA held onto is a reminder that banks will keep charging until someone stops them. Start with your own account. Look at the fees. Ask for a better deal. And if they say no, take it further.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Budgeting Bliss: The Simple System That Actually Works.
Sources and Further Reading
Investing for Beginners: Demystifying the Australian Stock Market — A practical starting point if you’re ready to move beyond bank accounts and build real wealth.
The Power of Compounding: Starting Your Wealth Journey Early in Australia — Why small amounts saved now can grow into something substantial over time.
Financial Rights Legal Centre (2025). ASIC report into bank fees prompts banks to refund $93 million in dodgy fees to low-income Australians but CBA withholds another $270 million. 🔗
Reserve Bank of Australia (2026). Bank Fees in Australia — May 2026 Bulletin. 🔗
