Commonwealth Bank to shift 1.5 million customers to no-fee bank accounts after lower income ruling by the ACCC

Commonwealth Bank will move 1.5 million customers into no-fee bank accounts after Australia’s competition watchdog ordered banks to make the change for their poorer customers.

Eligible customers at Australia’s biggest bank will move into “basic” accounts, which will have no fees and has free banking features such as debit card access and direct debits.

It comes after the ACCC ruled that the 20 banks under the Australian Banking Association must “proactively identify existing customers who may be eligible for lower-fee accounts and move them unless they choose to opt out”.

ACCC deputy chair Mick Keogh expects the conditions set will “help more eligible Australians access lower-cost banking products and avoid bank fees”.

“We want banks to do more than simply make these accounts available,” he said.

“They should actively identify customers who may benefit and make sure they are aware of their options.”

In 2025, CBA argued for the creation of an account for low-income customers that charged a monthly fee of $1. It also pushed for fee-free accounts to be offered to existing customers on an “opt-in” basis.

But on July 27, the ACCC issued its final determination.

“The conditions imposed by the ACCC require banks to offer eligible new customers basic, low or no-fee accounts,” the corporate watchdog said in a statement.

“They also require banks to proactively identify existing customers who may be eligible for lower-fee accounts and move them unless they choose to opt out.”

Under the new rules, banks must also not charge interest on informal overdrafts on basic, low or no-fee accounts, or refund any interest charged.

Banks must also take “reasonable steps” at least once a year to contact existing customers who may be eligible for the no-fee accounts.

The ruling is valid for five years, the ACCC said.