On March 28, 2025, the Australian Competition and Consumer Commission (ACCC) released a draft determination proposing to grant authorisation AA1000683 to the Australian Banking Association Ltd (ABA). This authorisation would allow member banks to enter into agreements concerning basic accounts and default interest charges on agricultural loans under the Banking Code of Practice.

Basic accounts offered by ABA member banks are designed to be low or no fee transaction accounts. These accounts feature no account keeping fees, free periodic statements, no minimum deposits (with some exceptions), free direct debit facilities, and access to widely accepted debit payment methods at no extra cost. Additionally, holders of specific government health cards may qualify for accounts with further benefits, such as no informal overdrafts, no dishonour fees, and no overdrawn fees.

The ACCC's proposed authorisation would last for five years and includes conditions aimed at ensuring public benefits. The ACCC believes that the proposed measures will enhance the likelihood of farmers receiving financial relief during droughts and natural disasters, while also improving access to affordable banking services for low-income customers.

Conditions for the authorisation require member banks to refrain from charging interest on informal overdrafts for basic accounts, to actively identify and contact eligible customers annually, and for the ABA to report on informal overdrafts and the uptake of basic accounts. The ACCC is currently inviting submissions on its draft determination until April 18, 2025.

Interim authorisation with conditions was granted on December 4, 2024, and will remain effective until the final determination is made or revoked. The ACCC's role is to assess requests for exemptions from competition laws that may arise from such collaborative arrangements, ensuring that the public benefit outweighs any potential detriment.