Major Australian Banks Refund Over $130 Million to Disadvantaged Customers

According to the latest report Better and Beyond released by the Australian Securities and Investments Commission (ASIC) on July 29, 2025, a review has found that over 920,000 low-income customers will receive a total of $93 million AUD in bank fee refunds. So far, 150,000 customers have already been refunded $33 million, and the remaining 770,000 are expected to receive an additional $60 million. Several banks had already pledged in 2024 to compensate low-income and Indigenous customers a combined $28 million.

ASIC’s investigation revealed that at least 2 million low-income customers were mistakenly classified into high-fee accounts and were not automatically transferred to more appropriate products, resulting in unnecessary fees. Banks have now moved over 1 million eligible customers to low-fee accounts, which is expected to save them around $50 million AUD annually.

ASIC Chairman Joe Longo stated that banks should not wait for an ASIC investigation before taking action. He criticized the financial industry’s failure to responsibly serve disadvantaged groups and called on banks to re-examine their product design and sales practices.