On 28 March 2025, the ACCC issued a draft determination proposing to grant authorisation AA1000683, with conditions, to enable the Australian Banking Association Ltd’s (ABA) member banks to make agreements relating to basic accounts and default interest charges on agricultural loans under the Banking Code of Practice.
Basic accounts
ABA member banks may offer basic accounts or other kinds of low or no fee transaction accounts. Basic accounts have the following minimum features:
- no account keeping fees
- free periodic statements
- no minimum deposits (except that you may be required to have your government benefit payment paid into this account)
- free direct debit facilities
- access to your choice of a widely accepted debit payment method (including a debit card) at no extra cost
- free and unlimited Australian domestic transactions.
In addition, if you hold a Commonwealth Seniors Health Card, a Health Care Card or a Pensioner Concession Card, you may also be eligible for a basic, low or no fee account with the following special features:
- no informal overdrafts - meaning the bank will not allow the overdrawing of your account (i.e. when a debit on your account is more than what is available in your account) unless it is impossible or reasonably impractical to prevent
- no dishonour fees - meaning you will not be charged a fee because a debit on your account is declined due to insufficient funds in the account
- no overdrawn fees – meaning you will not be charged a fee when your account falls into debit (however interest may still be charged on the amount in debit).
ACCC’s authorisation process
The ACCC proposes to grant authorisation in relation to the ABA’s application for 5 years, with conditions to ensure the public benefit arises from the conduct. The ACCC considers that the proposed conduct is likely to result in a public benefit in the form of an increased likelihood farmers will receive reprieve in times of drought and other natural disasters and, with the proposed conditions, an increased likelihood that low-income customers will have access to affordable banking services.
The proposed conditions of authorisation broadly require:
- member banks to not charge interest on informal overdrafts, or alternatively to refund any interest charged on informal overdrafts on basic, low or no fee accounts
- member banks to at least once annually, take reasonable steps to identify and directly contact existing customers who are, or may be, eligible for a basic, low fee or no fee accounts and who do not already hold a basic, low fee or no fee account, and
- the ABA to report to the ACCC on informal overdrafts that occur in certain circumstances without customers’ agreement, any change in the number of member banks offering basic accounts, steps taken by member banks to identify customers eligible for basic, low or no fee accounts, and the uptake of these accounts.
The ACCC invites submissions in relation to its draft determination by 18 April 2025, including in relation to the proposed conditions of authorisation. Further information about the ACCC’s draft determination is available on the ACCC’s public register.
The ACCC granted interim authorisation with conditions on 4 December 2024, and it will remain in place until the date the ACCC’s final determination comes into effect or until the ACCC decides to revoke interim authorisation.
The ACCC’s role is to consider requests for exemptions from competition laws that may be breached to enable competitors to collaborate on such arrangements.
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010 (Cth).
Broadly, the ACCC may grant authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.