Election 2025: Slug big banks ‘to keep rural branches open’

Regional and rural banks are calling on the future government to help them keep their doors open by imposing a levy on big banks.

Nineteen regional and rural banks have come together to call on a future government to help them keep their branches open. Picture: NewsWire / Nicholas Eagar

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Regional and rural banks are calling on Anthony Albanese and Peter Dutton to help them keep their doors open by imposing a levy on big banks that “profit most from the Australian community and yet fall short on investment in regional Australia”.

Nineteen banks from across the country – including Regional Australia Bank, The Capricor­nian, and Traditional Credit Union – have come together to seek the support of major political parties and independents in the lead up to the federal election.

The banks said their branches – which can cost about $1.2m a year to run – provided a vital community service. The group argued their banks often ended up acting as a “de facto branch” for the big banks that had left country towns, with some customers engaging in “pass-through banking” where they use the country branches for expensive services such as cash handling and then transfer their money to big banks that enjoy the profits.

The group wants big banks that don’t have a reasonable number of regional and rural branches compared to their size to pay a levy akin to a “rounding error” which would be a small amount compared to their revenue and profit.

The regional and rural banks criticised the government for what they said was a lack of positive action and support to help them keep their branches open.

Regional Australia Bank CEO David Heine said the bank’s 38 regional NSW branches provided a range of secure services and professional advice that could not be replaced by online services, post offices or ATMs.

“The big banks have shut over 800 branches in rural and remote areas since 2017, trying to push Aussies toward digital services that simply don’t provide all the services people need in the bush, particularly during natural disasters and regular network outages,” Mr Heine said.

Other banks in the group include Broken Hill Bank, Northern Inland Credit Union, Cairns Bank, The Mutual Bank, Central Murray Bank, Bank Orange, Summerland Bank, Horizon Bank, Geelong Bank, Family First, Warwick Credit Union, Bank WAW, South West Slopes Bank, Hume Bank, Goulburn Murray Credit Union and Coastline Bank.