After months of pressure from regulators and financial advocates, the Commonwealth Bank of Australia (CommBank) has finally agreed to refund tens of thousands of low-income customers wrongly charged excessive fees — a stunning turnaround for the country’s largest bank.
A Sudden About-Face
CommBank confirmed it will refund $68 million to “relevant concession customers” after previously refusing to repay $270 million in excessive fees identified by the Australian Securities and Investments Commission (ASIC). The charges, applied between 2019 and 2024, hit some of the country’s most vulnerable people — including those receiving Centrelink payments — with account-keeping, dishonour, and overdraw fees they should never have paid.
ASIC’s Better and Beyond Banking report uncovered widespread overcharging across 21 banks. While ANZ, Westpac, and Bendigo Bank quickly agreed to repay almost $60 million combined, CommBank had resisted — until now.
CommBank Faces Ethical Backlash
The bank’s sudden change of heart hasn’t silenced criticism. CommBank’s refund represents just over a quarter of what it was accused of wrongly collecting. The bank described the move as a series of “goodwill adjustments,” bringing its total compensation to $93 million, including earlier refunds for First Nations customers affected by previous overcharging. But financial counsellors and advocates say that’s not enough. Alan Gray, who works with low-income and Indigenous clients in Western Australia, said the partial refund “defies logic and fairness.”
“For months, Commonwealth Bank has been publicly saying ‘no, we’ve done nothing wrong and we shouldn’t have to refund a cent of this $270 million,” Gray said to ABC News.
Regulators Step In
ASIC Commissioner Alan Kirkland welcomed the refund but expressed disappointment that many affected customers might still miss out. “These are people living on very low incomes,” he said. “Any money that comes out of their bank account by way of a fee, is money that they haven’t been able to spend on basics like groceries or energy bills.” Kirkland said ASIC would continue monitoring the bank’s progress, adding that the watchdog preferred voluntary compliance over lengthy court action. “We expected banks to make this right on their own initiative,” he said.
What Happens Next
CommBank said it will begin contacting eligible customers from February 2026. Refunds will be automatically deposited, but ASIC and financial counsellors are urging people who believe they were affected to reach out directly. Gray warned customers not to wait. “People should contact their local financial counsellor or the bank itself,” he said. “I really doubt CommBank has it in its DNA to just do the right thing without a push.”
While the refunds are a small win for consumers, many argue they fall far short of justice. For those who went without essentials because of unlawful fees, it’s a reminder that even a major refund can’t undo the hardship caused.
