More than a million Aussies to avoid fees as major bank responds to consumer watchdog crackdown

Published: 10:59, 30 July 2026 | Updated: 11:08, 30 July 2026 Australia's largest bank is making a major change for 1.5 million of its customers, with fee-free accounts set to be rolled out. The move follows a landmark ruling by the Australian Competition and Consumer Commission (ACCC) aimed at improving access to basic banking services for Aussies on a low-income.  The Commonwealth Bank (CBA) will move eligible customers onto its Streamline Basic account, which comes with no account-keeping fees and offers free banking features, including direct debits, debit card access and unlimited domestic transactions. Under the ruling, banks must proactively offer eligible customers low-fee or no-fee accounts and cannot charge interest on informal overdrafts linked to these accounts. Any interest already charged must also be refunded. The determination will apply for five years and cover 20 Australian banks operating under the Australian Banking Association (ABA). CBA and its boss Matt Comyn had argued in 2025 that fee-free accounts should only be offered to existing customers on an 'opt-in' basis and proposed creating a new type of account for low-income customers with a $1 monthly fee. In a statement, a CBA said the bank supported all customers' access to basic banking services. 'We acknowledge the ACCC's determination and will implement the recommended outcomes,' a spokesperson said. The Commonwealth Bank will scrap fees for 1.5 million customers after major watchdog ruling (pictured is CBA boss Matt Comyn) The ACCC also required fees be paid back to customers where they had already been charged ACCC deputy chair Mick Keogh said the new conditions would ensure all low-income customers and people experiencing financial hardship could access fee-free banking. 'We want banks to do more than simply make these accounts available,' Mr Keogh said. 'They should actively identify customers who may benefit and make sure they are aware of their options.' An investigation by the Australian Securities and Investments Commission (ASIC) found more than 150,000 low-income Australians held higher-fee accounts despite being eligible for lower-cost alternatives. ASIC's Better Banking report, released last year, reviewed 21 banks and found customers had been charged fees they may have avoided by switching to more suitable accounts. The report found Commonwealth Bank had charged $270 million in fees to 2.2 million customers over a five-year period that ASIC believed should not have been charged. CBA agreed to provide around $68 million in goodwill payments to affected customers as partial refunds. ASIC chair Sarah Court said the ACCC's ruling placed customers in a 'good place' by ensuring vulnerable Australians had better access to affordable banking options.