Assistant Treasurer Stephen Jones has urged the bank to reverse its decision.
Australia’s assistant treasurer has increased pressure on the country’s largest bank following its announcement of a $3 fee for cash withdrawals. The Commonwealth Bank (CBA) implemented this new policy for over-the-counter requests, agencies (via Australia Post), and phone banking, but stated that it would not apply to many ATMs across Australia. This decision coincides with the Australian government’s efforts to ensure that banks in the country continue to provide cash services.
Additionally, CBA will transition customers from Complete Access accounts to Smart Access accounts starting Jan. 6, 2025, with a $4 fee attached. This fee can be waived if a customer deposits at least $2,000 per month or if the customer is under 30 years of age. The bank assured customers that they would be notified before their account is switched.
In response to CBA’s decision, Minister Stephen Jones from the Labor Party criticized the move, calling it a ‘tax on Australians’ and urging the bank to reconsider. He emphasized that the government would work to ensure that cash remains easily accessible to the public.
Meanwhile, Queensland Senator Gerard Rennick reiterated his call for a publicly-owned bank as a solution to prevent such fee impositions. He highlighted the disparity between the minimal interest earned by deposit accounts and the additional fees charged by banks.
CBA’s shares have seen significant growth in the past year, reaching $158.33 per share, despite a 2% decrease in cash net profit after tax in the 2024 financial year.
Furthermore, other banks like Bendigo Bank and ANZ have also introduced fees for cash withdrawals, with Bendigo Bank charging $2.50 for over-the-counter withdrawals and ANZ charging between 80 cents and $2.50 for various staff-assisted transactions.
The Labor government’s intervention on cash usage aligns with their commitment to protecting the option to use cash for essential purchases, as digital payment methods become more prevalent. This initiative follows concerns raised by Liberal MP Rick Wilson about the impact of bank branch closures on regional communities.
It is evident that the landscape of banking services is evolving, with a shift towards digital transactions, but the government is actively working to maintain access to cash while also phasing out cheques. This effort comes in response to the closure of bank branches and the removal of thousands of ATMs in recent years, which has raised concerns about the impact on communities and businesses. Please rewrite this sentence.
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