Commonwealth Bank reverses plan to charge cash withdrawal fees following widespread backlash

After announcing a controversial plan to charge customers a fee to access their own cash, Commonwealth Bank has backflipped on the decision following fierce backlash.

Under the proposal, customers with a Complete Access account would have been automatically transitioned to Smart Access accounts. The Smart Access account introduces an “assisted withdrawal fee,” charging customers $3 when they withdraw cash at bank branches, post offices, or over the phone.

The bank confirmed that the fee would have been waived for customers under 18, those receiving an age, service, or disability pension, or individuals with a disability necessitating branch access.

The move was met with widespread condemnation, particularly from Assistant Treasurer Stephen Jones who labelled the move the “worst Christmas present imaginable”.

“This is a kick in the guts for ordinary Australians and the worst Christmas present imaginable,” Jones told reporters in Sydney on Tuesday, December 3.

“This seems to me to be a tax on Australians who demand the right to use their cash and the government won’t stand for it.

“If they want to go in and see their bank branch, Australians should have access to banking services wherever they live.”

Amid the mounting criticism, the bank’s head of retail services Angus Sullivan announced the temporary reversal of the charge for those likely to feel the financial strain.

“We have done a poor job of communicating this change to our 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,” Sullivan said.

“Those we expect might be slightly worse off and need more support in making sure their banking arrangements are appropriate, we’re going to pause the changes we announced.

“We’re going to spend the next six months individually engaging with those customers to make sure we have a solution tabled for each one of them rather than a simple migration across to a Smart Access account.”