Commonwealth Bank executive defends $3 fee for some customers, says cash handling is ‘expensive’

Ally Langdon grilled Angus Sullivan over CommBank’s controversial decision to slug customers with a $3 fee for withdrawing their own cash.

Ally Langdon took a CommBank executive to task on Tuesday night over the bank’s controversial decision to charge customers to withdraw their own cash.

Commonwealth Bank were slated after announcing that millions of customers would face the $3 fee from January if they wanted to withdraw their own cash from one of the bank’s branches, with even the assistant treasurer calling the decision “the worst Christmas present imaginable”.

Appearing on Channel 9’s A Current Affair, Angus Sullivan, the executive behind CommBank’s retail banking services, attempted to defend the controversial fee.

The fee applies to customers with a Smart Access account who choose to withdraw cash at a branch.

ACA host, Ally Langdon grilled Mr Sullivan on Tuesday, insisting that it “doesn’t sit well with families who are struggling as our banks make billions”.

Mr Sullivan retorted with the confounding reply that handling cash is “expensive”, even for a bank that posted a $9.8 billion profit in 2024.

He also explained that only about 10 per cent of customers would be impacted by the change.

“For our Smart Access customers, approximately 90 per cent of them will be better off or will have a neutral outcome as a result of this change,” Sullivan said.

He added that there are plenty of fee-free options available, including ATMs and deposit ATMs in every branch, with staff ready to help customers avoid the charge.

“There are a lot of options available for people to not pay this fee,” Sullivan said.

Langdon said given the current economic climate in Australia, banks could be doing a lot more to help average Australians who are paying exorbitantly more for goods and services compared to a few years ago.

“I don’t know if the majority of Australians feel the same way that their bank is supporting them,” she said.

“Particularly with this fee today. I know you explained it is not a big deal that it is to a lot of people. Christmas is still a few weeks away.

“You know what would be welcomed? An interest-rate cut. That would get you off the naughty list.”

Ally Langdon grills CommBank executive Angus Sullivan. (Nine)

One customer said they would be closing their account following the introduction of the fee. Picture: Rohan Kelly.

Mr Sullivan laughed off the suggestion that the bank take a financial hit to benefit customers and insisted CommBank has their bank account holders “in our mind”.

“That’s not in my purview to make happen,” he said.

“But I appreciate customers are doing it tough at the moment. I certainly hope that we can explain these changes in a way that makes our customers feel that we have put them in our mind.”

Viewers were quick to slam the bank after the interview.

“What a pathetic response from this spokesperson for CBA,” one said.

“Just be up front and honest. It about profits and high level management bonuses. You treat people like D.Heads (sic). Actually have some respect for your customers.”

Another customer said they would be closing their account following the introduction of the fee.

“Commonwealth Bank I will be closing my 35 year account with you tomorrow and withdrawing the $365,000 IN CASH,” they said.

“Take your money elsewhere, money does the talking when it comes to banks!” urged another viewer.

Katter goes for the jugular

Rural Queensland MP Bob Katter slammed the Commonwealth Bank’s decision to slug customers a $3 transaction fee for withdrawing cash.

“I think that it’s an act of defiance and contempt for the people of Australia,” he told Channel 10’s The Project on Tuesday.

Mr Katter said the decision was a counter attack against the growing movement to enshrine the accessibility of cash, which he says left the banks “very surprised at how successful we’ve been.”

“So they’re attacking now against the government who is moving to enshrine cash,” he said.

Mr Katter does not approve.

Mr Katter said people had the right to use their own money as they wished.

“Now, I’d feel a lot more comfortable if I had a big giant safe somewhere that no one could break into or put a gun to my head to get into, than leaving it with a bank,” he said.

“In fact, I feel very insecure at the banks.”

The Member for Kennedy has long been a staunch defender of the right to use cash, making headlines in February when a cafe at Parliament House refused to take his $50 note as payment for a plate of fish and vegetables.

Originally published as Commonwealth Bank executive defends $3 fee for some customers, says cash handling is ‘expensive’