The Australian Competition and Consumer Commission (ACCC) has issued a final determination allowing member banks of the Australian Banking Association (ABA) to continue their collaboration under the Banking Code of Practice. This initiative aims to improve access to low-fee and no-fee bank accounts for low-income Australians and provide relief to farmers during droughts and natural disasters.

Initially authorized in 2019, the collaboration focused on establishing minimum eligibility criteria and features for basic banking accounts. The recent re-authorization includes new conditions that require banks to actively identify and assist eligible customers in accessing these accounts, thereby reducing unnecessary banking fees.

ACCC Deputy Chair Mick Keogh emphasized the importance of these conditions, stating that they will help more Australians avoid bank fees that disproportionately affect those with lower incomes. The ACCC's assessment revealed that over 150,000 low-income customers were still using higher-fee accounts despite being eligible for lower-cost alternatives, incurring $6 million in fees over a year.

To address these issues, the ACCC has mandated that ABA member banks must provide information about low-fee accounts to new customers, migrate eligible existing customers to these accounts, and conduct annual outreach to identify potential beneficiaries. Additionally, banks are prohibited from charging interest on informal overdrafts for these accounts.

The ACCC has granted this authorization for a period of five years, with the ABA required to report annually on compliance. The Banking Code of Practice, which sets standards for how banks interact with customers, has been updated to reflect these commitments.