On Tuesday, Australia’s largest bank announced it would be moving more than one million Complete Access account holders – about 10% of its customers – to a Smart Access account.

The news sparked widespread backlash from politicians, customers, and commentators as Smart Access account holders are charged $3 every time they take money out at a branch, post office, or by phone.

Impacted customers were to be moved to new accounts by 6 January.

But a day after its announcement, the bank “provided an update” saying it would be pausing the migration of customers who would be worse off under the changes or who don’t want to switch their account.

Political pressure

The bank's backflip followed a call from federal treasurer Jim Chalmers to CommBank boss Matt Comyn in which Dr Chalmers communicated the government’s concerns, according to Australian Financial Review reports.

The move also drew criticism from the other side of politics, with opposition leader Peter Dutton calling on the bank to rethink its account fees.

On Wednesday, CommBank retail banking services executive Angus Sullivan said it had done “a poor job of communicating the change” to customers.

“We are particularly conscious of the impact any change to planned fees and charges can have at this time of year especially given the cost of living pressures our customers face,” Mr Sullivan said in a statement.

Customers under the age of 18, on an aged, disability or war veterans’ pension, or reliant on over-the-counter services due to a disability were to be exempt from the fee.

Consulting customers first

CommBank will now hold off forcing Complete Access account holders onto Smart Access accounts until it can consult current users who don’t want to switch or will be worse off. 

As part of the curiously worded statement, Mr Sullivan said “the changes taking place as such that the approximately 90% of customers we intend to move, and who we expect will be better off or the same, will be moved to the lower monthly account fee”.

The Smart Access account offers lower fees – $4 per month compared to $6 per month – but customers who make cash withdrawals from branches or other outlets would have been worse off by $3 per withdrawal. 

It says customers who don’t want to move accounts can contact the bank to discuss their options.

“For the remaining customers, we are changing our approach,” the statement continues.

“Instead, we will contact these customers over the next six months to discuss the most appropriate product for them given their needs.”

Hitting the vulnerable

The government had expressed concern the $3 withdrawal fee would hit some of the most vulnerable people in the banking system.

Finance minister Katy Gallagher was another vocal critic of the change, saying it's “pretty extraordinary to have a charge of this size for a simple transaction of going into a bank and withdrawing your own money”.

CommBank initially defended the fee on Tuesday, claiming it reflected the rising cost of handling cash.

A day later, it was instead pointing out that it maintains Australia's largest branch network, with each having fee-free ATMs, as well as its moratorium on regional branch closures until at least the end of 2026.

CommBank's legacy Complete Account product hasn't been offered to new account holders since 2016.


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