Bank charges in Australia: comparisons, how to reduce

A bank account is your business’s financial engine, offering essential services that fuel your enterprise’s growth. However, you need to be aware of bank charges so you can manage costs effectively. Depending on the bank account, you might have to pay maintenance fees and fall-below fees. There are also bank charges for services like FAST transfers and SWIFT payments.
A bank account is your business’s financial engine, offering essential services that fuel your growth. However, you need to be aware of bank charges so you can manage costs effectively. Depending on the bank account, you might have to pay maintenance fees and low balance fees. There are also bank charges for services like SWIFT payments.
Understanding bank charges helps you avoid unexpected costs that might impact your profit margins. In this guide, we’ll explore the common bank fees in Australia, compare fees across popular business bank accounts, and smart ways to minimise bank charges.
What are bank charges?
Bank charges are the costs associated with using financial services, such as transferring money, accepting payments, or opening a business account. Bank fees play a big role in everyday business situations like payroll processing or supplier payments. As you compare business bank accounts, it’s important to review the fee schedule and fine print, especially for items like free local transfers or fee waivers.
It’s important to note that banks generally structure their fees based on the type of business account, with smaller fees for SME accounts, since they typically require fewer features and lower transaction volumes. Larger corporations might pay higher fees because their accounts require more complex services and higher operational demands.
What are the different types of bank charges?
Banks in Australia apply various charges to business accounts. Here are some common fees you might encounter:
Account setup fees
Account setup fees are a one-time charge imposed by banks when businesses open a new account with them. These fees cover the administrative costs of processing the account application. Banks may also require a minimum initial deposit to open the account and ensure a baseline balance.
For instance, a business opening a new corporate account may be charged a $50 account setup fee and a minimum initial deposit of $1,000. These fees might cover the costs of verifying documents or activating account features. Some banks may waive this fee for small-to-medium enterprises (SMEs) or new customers.
Account maintenance fees
Account maintenance fees – sometimes called admin fees – are recurring charges banks apply to provide ongoing services. These fees often cover administrative tasks like account monitoring, monthly statements, and customer support.
For example, a bank might charge you a $20 monthly admin fee to keep your business account active. Some banks waive these fees if the account maintains a minimum balance, so it’s worth checking for such conditions to save on costs.
Minimum balance requirement and low balance fees
A minimum balance requirement is the minimum amount of money a bank requires customers to maintain in their accounts. This may be calculated as a daily average balance, which is the sum of the account balance per day, divided by the number of days in that month.
The bank can impose low balance fees when the account balance falls below the required minimum balance.
For example, if a bank requires a daily average balance of $5,000 and the account holder maintains $6,000 for 15 days and $4,000 for the next 15 days, the daily average balance would be $5,000. If the balance drops below S$5,000 and the average isn't maintained, the bank may charge a low balance fee.
Transaction fees
Transaction fees are charges banks apply when a business makes payments to another bank account within Australia or overseas. Some banks charge 50c per foreign bank transaction and an additional 3.5% for international transactions.
Other times, transaction fees are charged on the method of deposit or withdrawal or if you request a statement. Typically, traditional banks will charge for physical transactions via teller-assisted transactions or ATMs. Online transactions are typically free.
Cross-border fees
Cross-border fees are charges applied when businesses send or receive payments across countries. These fees often include SWIFT fees, processing costs, currency conversion charges, and intermediary bank fees.
Suppose a wholesaler in Australia uses the SWIFT network to pay suppliers in China. The bank charges a $30 SWIFT fee or an outward TT fee for processing the international payment. Banks can also charge an inward TT fee when the retailer receives a cross-border payment from a customer in Indonesia.
International transfers at lower cost
Overdraft and insufficient funds fees
Overdraft fees are charges that banks apply when a business withdraws or spends more money than it has available in its account. These fees cover the cost of allowing the account to go into a negative balance temporarily.
Let’s say an SME accidentally overspends on a supplier payment, leaving their account $500 short. The bank allows the transaction to go through but charges a $50 overdraft fee for covering the shortfall. While overdraft protection can be helpful in emergencies, these fees can quickly add up.
Inactivity and dormancy fees
Inactivity and dormancy fees are charges banks impose on business accounts that haven’t been used for a specified period. These fees cover the cost of maintaining an account that shows no activity. If you close an account less than a year after opening it, you may also have to pay an early account closure fee.
For example, a business in Australia opens a secondary account for future projects but doesn’t use it for over a year. The bank classifies it as dormant and charges a S$15 monthly dormancy fee until the business makes a transaction with it. To avoid these charges, businesses should regularly review their accounts to ensure they’re being utilised effectively.
Comparing bank charges in Australia
Let’s compare the different bank charges that businesses in Australia might encounter from the common banks including the ‘Big Four’. We’ve also added the Airwallex Business Account, a fintech alternative to traditional business bank accounts. The Airwallex Business Account is built for businesses of all sizes and industries.
Fee type | ANZ Bank Business Extra Account | Commonwealth Bank Business Transaction Account | National Australia Bank Business Everyday Account | Westpac Bank Business One Low Plan | Airwallex Business Account
|
---|---|---|---|---|---|
Account setup fees | No fees2 | No fees | No fees | No fees | No fees |
Minimum initial deposit | None required | None required | None required | None required | None required |
Monthly maintenance fees | $10 | $0-10 | $10 | $10 | $0-29 (with the Explore bundle) |
Minimum balance requirement | No min. balance requirement | No min. balance requirement | No min. balance requirement | No min. balance requirement | To qualify for a fee waiver a minimum of $10,000 is required. |
Monthly fall-below fee | No fees | No fees | No fees
| No fees | No fees |
Domestic transfer fees | 80c per assisted transaction | $3 per assisted transaction | $2.50 per assisted transaction. $5 withdrawal fee. | N50c per transaction over free allowance. $1 in-branch deposit or withdrawals | No fees |
International transfer fees | 3% international transaction fee. $5 international ATM fee | $5 + 3% international ATM fee | 3% international conversion rate | $5 + foreign surcharge for international ATM fee | No transaction fees. Only 0.5-1% on interbank rate for conversion |
Overdraft fees | Business Overdraft Base Rate at 13.7% (accurate as of 16 May 2025) | $15 | $15 | $15 | No fees |
ANZ Bank Business Extra Account
The ANZ Business Extra Account offers unlimited ANZ transactions, bulk payment functionality, and integrations with accounting software.
Pros:
Unlimited ANZ ATM and domestic electronic transactions at no extra cost
Free ANZ Business Visa Debit card included
Overdraft facility available
Cons:
High overseas transaction fees of 3%
High overseas withdrawal fees of $5
No multi-currency accounts, payment acceptance features, or opportunity to earn returns included
Commonwealth Bank Business Transaction Account
The Commonwealth Bank Business Transaction Account offers flexible fees and a set number of free transactions per month, with convenient access to CommBiz, NetBank, and the CommBank app.
Pros:
Free monthly account when choosing the digital-only option
Unlimited free domestic electronic transactions
MYOB and Xero integrations
Cons:
High rates of physical transactions, including $5 fee per assisted transaction and withdrawal fees of $5
High overseas transactions fees of 3%
No multi-currency accounts, payment acceptance features, or opportunity to earn returns included
National Australia Bank Business Everyday Account
The NAB Business Everyday Account is suitable for day-to-day business operations, with integration options and support services. It comes with a linked debit card and offers in-branch or online banking.
Pros:
No monthly account fee
Free NAB ATM and EFTPOS transactions
Advanced fraud protection measures
Cons:
Branch transactions incur a $2.50 fee
No multi-currency accounts, payment acceptance features, or opportunity to earn returns included
No expense management features. An additional platform will likely be required
Westpac Bank Business One Low Plan
The Westpac Business One Low Plan provides banking services catering to businesses with lower transaction volumes. It features payment support and online banking access.
Pros:
Online banking features
25 free transactions per month
Customisable alerts for low balances and inbound and outbound payments
Cons:
Each transaction over the free allowance comes with a 50c fee
High international transaction rates, including currency conversion and transfer
No multi-currency accounts, payment acceptance features, or interest savings on returns included in this account
Airwallex Business Account
The Airwallex Business Account is a fee-friendly option for everyday financial management and international transactions, offering multi-currency accounts and high-rate savers on AUD and USD funds. It features real-time spend tracking, expense management, and seamless integration with Xero, MYOB, QuickBooks, and many more.
Pros:
Free domestic and international transfers
Hold, convert, and transfer international funds with a multi-currency account
Corporate cards and expense management tools to manage spend for every employee
Cons:
No physical branches – digital-only platform and service
New updates and optimisations being released regularly, which may not suit the user habits of all consumers
Built to serve businesses only, no complementary consumer account available
How to reduce bank charges
Reducing bank charges starts by choosing a business account aligned with your needs and transaction volumes. You also need to be aware of your chosen account’s fees to minimise costs and maximise value. Here are some tips to avoid specific bank fees.
Tips to reduce monthly or annual fees
The best way to avoid annual or monthly fees is to compare business accounts extensively before choosing one. You’ll want an account that has no recurring admin fees, or that waives fees if you meet conditions like a minimum balance.
You can also reach out to your account provider and explain your business needs, especially if you handle large or frequent transactions. They may offer custom rates or bundled services tailored to your activities.
If your business maintains several bank accounts in Australia and overseas, consider streamlining them into a single account with Airwallex. Not only do you avoid paying unnecessary fees, you also simplify your financial management and get a consolidated view of your business’s financial performance across entities. Many of the traditional Australian banks do not offer multi-currency accounts.
Tips to reduce low balance fees
Businesses should monitor their account regularly to reduce low balance fees and maintain the required average daily balance. Plan ahead by keeping a buffer amount in the account to cover fluctuations, such as unexpected expenses or delays in payments. Consolidating funds from other accounts into the primary account can also help meet balance requirements.
Tips to reduce domestic transaction fees
If you know you'll make frequent SWIFT payments, use a business account that offers unlimited free transactions. Remember that traditional banks aren’t your only options for low-cost domestic transfers. Consider fintech payment platforms like Airwallex, which offer unlimited FAST payments.
Tips to reduce cross-border fees
Banks generally use wire transfers or the SWIFT network for international payments, which come with high fees. Minimise cross-border fees by using a fintech alternative like Airwallex, which has a proprietary network of local payment rails. International transfers to 120+ countries are free when you use local transfers (e.g. USD to a supplier in USA) instead of SWIFT. 90% of these payments arrive on the same day. This approach not only saves money but also improves efficiency for businesses handling frequent international payments.
Streamline your global finances, protect your margins
Explore Airwallex: transparent fees, amazing features, and seamless global transactions
Monitoring and avoiding bank charges takes time, but the best way to save both time and money is by choosing the right account from the start.
Airwallex helps you avoid unnecessary fees with transparent bundled pricing. Our Explore tier starts at only $29/month, and even this modest fee can be waived if businesses deposit at least $5k per month or hold a minimum balance of $10k.
If you’re juggling multiple bank accounts across overseas entities, Airwallex can be a great solution for consolidating your finances. Airwallex has 60+ licences globally, including Australia where we’re regulated by the Australian Prudential Regulation Authority (APRA). With Airwallex, you get a consolidated view across multiple entities and avoid unnecessary maintenance fees.
Frequently asked questions (FAQs)
1. What are the most common hidden bank charges businesses overlook?
Businesses often overlook hidden bank charges like low balance fees, which are penalties for not maintaining the required minimum balance. Transaction fees, especially for exceeding free limits on transfers or payments, can add up without notice. Additionally, foreign exchange markups and cross-border fees on international payments may seem small but can increase costs over time.
2. How can businesses negotiate bank fees with their banks?
Businesses can negotiate bank fees by demonstrating their value as a loyal customer, such as maintaining significant account balances or using multiple services. It helps to compare offerings from other banks and present these options as leverage during discussions. Being clear about the solutions you want, like fee waivers or custom pricing, can lead to better terms that align with your business goals.
3. Are there any banks in Australia that offer zero-fee business accounts?
Some banks in Australia offer business accounts with zero fees for opening and maintaining the account. However, transaction fees still apply, especially for international payments. It's important to compare different account options and fees to find one that suits your business's transaction volumes.
4. How often should businesses review their bank statements to identify unnecessary charges?
Businesses should review their bank statements at least once per month to quickly spot any unnecessary charges or unexpected fees. Regular checks help ensure transactions are accurate and provide an opportunity to address any discrepancies promptly.
5. Are there specific tools that help businesses track and monitor bank fees effectively?
Yes, there are tools that help businesses track and monitor bank fees effectively. Some banks offer in-app fee trackers or notifications that help businesses stay informed about recurring costs. Airwallex can also be integrated with accounting software like QuickBooks and Xero, which automatically categorises and tracks transaction fees.
6. Do all banks in Australia charge the same fees for business accounts?
Business banking fees vary widely across banks in Australia. Each bank is allowed to set its own fee structure based on the account type and features offered. While some banks charge monthly maintenance or fall-below fees, others waive these for startups or if certain conditions are met. Transaction charges, early closure fees, and FX markups can also differ significantly, so it’s worth comparing fee schedules closely to find the best fit for your business.
Sources:
https://www.anz.com.au/business/accounts/transaction-accounts/business-extra/
https://www.commbank.com.au/business/bank-accounts/business-transaction-account.html
https://www.nab.com.au/business/business-bank-accounts/transaction-accounts/no-monthly-fee-business-account
https://www.westpac.com.au/business-banking/bank-accounts/
Disclaimer: The information in this article is based on our own online research. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [[email protected]].
This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) read the Product Disclosure Statement (PDS) for the Direct Services available here.
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Vanessa is a business finance writer for Airwallex. With experience working at leading B2B technology companies, Vanessa is passionate about helping Aussie businesses, large and small, grow through cutting-edge tech. In her day-to-day, she breaks down complex tech jargon to help businesses streamline their end-to-end financial operations.
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