Commonwealth Bank unveils account changes that will charge ...

The Commonwealth Bank has unveiled major changes to one of its main everyday account offerings that will see some customers charged $3 to withdraw their own money.

The changes will see Commonwealth Bank customers who have a "Complete Access" account moved to "Smart Access" accounts, starting from January 6, 2025.

In a statement, the bank said the changes were "part of our commitment to provide the best available banking experiences".

"We've reviewed our everyday accounts offering and will be replacing Complete Access with our newer transaction account, Smart Access," it said.

The bank — which is Australia's largest — says its "Smart Access" account is its most popular everyday account.

The account boasts a $4 monthly fee that is waived if certain criteria are met, including a deposit of at least $2,000 per month.

However, the account also includes an "assisted withdrawal fee", where customers taking money out at bank branches, post offices or by phone are charged $3 per withdrawal.

The withdrawal fee is only waived for customers who are under 18 or have an aged, disability or war veterans' pension.

Customers who currently have a "Complete Access" account are not charged a withdrawal fee, and pay a monthly $6 account fee that the bank waives if criteria are met.

In outlining the changes on its website, the bank says there are three ways customers can avoid paying the $3 fee when withdrawing money:

Getting cash out from a CommBank ATM using a CommBank debit card;Make transactions without a card or PIN through QR Cardless (a replacement for its Cardless Cash service); orPaying bills and transferring money through the CommBank app or NetBank.

The Commonwealth Bank says affected customers will be notified in advance before their accounts are switched.

Customers have been unable to open a "Complete Access" account with the bank since 2016.

Commonwealth Bank customers can avoid the fee by withdrawing cash at ATMs. (AAP)

On Tuesday afternoon, financial services minister Stephen Jones urged the bank to "rethink this terrible decision".

"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," he said.

"We're working for Australians to ensure they can continue to use cash if they so choose.

"So we say to the Commonwealth Bank, this is the worst Christmas present ever.

"It's a kick in the guts to your customers."

Number of affected customers unclear

According to the Commonwealth Bank's annual report, published in August, the bank had a total of 11.2 million transaction accounts held by personal and small business customers at the end of the 2023-24 financial year. That number of accounts also excluded the number of offset accounts held by customers.

The bank did not disclose how many of those 11.2 million accounts were "Complete Access" accounts.

However, the bank told the ABC its "Complete Access" accounts were legacy products that were being migrated to CommBank's "Smart Access" accounts, which are its most popular and "full service" accounts.

A spokesperson for the Commonwealth Bank told the ABC that around 80 per cent of customers who currently hold a "Complete Access" account did not access the "assisted withdrawal" service.

Similarly, the bank did not confirm how many of the remaining 20 per cent of "Complete Access" customers were still using the withdrawal service and would therefore be charged the $3 fee.

Customers with a "Smart Access" account will be charged to withdraw cash at a bank branch. (Background Briefing: Mridula Amin)

In the 2023-24 financial year, the Commonwealth Bank recorded a profit of $9.5 billion.

Last year, Commonwealth Bank CEO Matt Comyn told a Senate inquiry that making cash available costs the bank "approximately $400 million each year, which works out to be roughly $40 for every one of our 10 million customers".

In a statement, the Finance Sector Union said the introduction of the withdrawal fee was "all about increasing their profit".

"In a cost-of-living crisis, every cent counts and $3 is a significant hit, especially for customers on low incomes, pensions and benefits," the FSU's national secretary Julia Angrisano said.

"It is an unnecessary and greedy grab from a bank that's making plenty while also cutting costs.

"Australians should be concerned that the CBA has been allowed to operate with impunity closing hundreds of branches, sacking staff and axing ATMs and now introducing a massive new fee for cash.

"Australians — whether they're customers or staff — are getting screwed by the big banks, who are making plenty of profit at the expense of their customers, communities and staff."

Changing times for banks

The Commonwealth Bank's decision to charge customers for cash withdrawals follows similar measures introduced by other banks — including Bendigo and Adelaide Bank, which introduced a $2.50 fee for customers withdrawing cash from a branch in October.

Both Westpac and NAB have confirmed separately to the ABC that they do not charge over-the-counter fees for in-person cash withdrawals at their branches.

The shift to charge for withdrawals comes as the process to transport cash around the country becomes increasingly expensive, while its usage continues to wane.

Earlier this year, the biggest customers of Armaguard, Australia's only distributor of banknotes and coins, poured in up to $50 million to keep the business afloat for 12 months.

In mid-November, the federal government announced plans that would require businesses to accept cash for fuel, groceries and other essential items, which it intended to implement by 2026.

There is currently no legal requirement for businesses to accept cash, so long as another fee-free payment option is available.

Separately, the federal government is also considering banning debit card surcharges, to prevent customers from being charged excessive and often hidden fees.

Pending a review of Australia's retail payments system currently being undertaken by the Reserve Bank, the ban would take effect from January 2026.

It also follows the ongoing closure of bank branches around Australia, with figures released by Canstar in October showing more than 200 bank branches had closed in the past financial year.

The data also showed that 217 ATMs had been shuttered in the past 12 months, while there were 63 fewer Bank@Post services — which many rural and regional towns rely on to do their banking.

However, Canstar noted that the rate of regional bank branch closures had slowed after three of the big four banks — CommBank, Westpac and ANZ — committed to "temporarily suspend" the closures.

"Bank branches are continuing to disappear as banking and payments increasingly go digital," Canstar research director Sally Tindall said at the time.

Ms Tindall also noted that Australians still relied on cash to pay for things.

"The latest ATM statistics from the RBA shows Australians withdrew $107 billion in the last 12 months alone — that's a lot of cash," she said.

"The banks, government and regulators will need to continue collaborating on solutions as our payments and banking platforms evolve."

The closure of bank branches in regional and rural communities in recent years has also prompted the federal treasury to suggest potentially charging a levy on banks that fail to deliver a minimum level of service outside of the capital cities.