Major Aussie bank slammed over 'obscene' move as thousands struggle to make ends meet: 'Falling off a cliff'

Yahoo

a day ago

St George Bank has been criticised by the small business community after it revealed certain people would be hit with a fee increase for essential services. The bank recently sent out letters to its business customers informing them that the cost to withdraw and deposit cash will be going up by 200 per cent.
The increase will kick in next month, and the bank said the change was to bring its fees in line with its parent company, Westpac. But Anne Nalder, CEO of the Small Business Association of Australia, told Yahoo Finance it's a kick in the guts for many business owners who might already be struggling.
"At a time when there is a high cost-of-living crisis for individuals and a high cost of doing business by small business owners, it is obscene and without much thought," she said.
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"Although the cost may not seem too high, every dollar adds to the cost of doing business at a time when small businesses generally are falling over the cliff.
"The very same banks will be the first to tell businesses to rein in their costs, yet they are adding to those costs.
"Whilst the Big Four continue to have a stranglehold in the banking sector, the plight of the small business owners will remain forgotten."
A poll of more than 6,300 Yahoo Finance readers found an overwhelming 95 per cent said they would leave their bank if they were charged a fee to withdraw their own money.What fees are increasing at St George Bank and why is it happening?
The change will only target business customers, with everyday accountholders spared from the fee hike.
Staff-assisted transactions at St George Bank branches, which include depositing and withdrawing cash, will go up from $1 to $3 at the start of September.
The number of monthly fee-free transactions will also be slashed from 30 per month to just five.
The fee to deposit and clear cheques is going up from 50 cents to $3, a 500 per cent increase.
"The changes will provide consistency across Westpac and St George so that all business customers are treated the same," a spokesperson for the bank told Yahoo Finance.
"Our fees remain competitive in market, and online transactions will be free. We also have a number of fee-free options available for customers."
The fee-free options include withdrawing up to $1,000 in cash each day from select ATMs, depositing up to $10,000 per day per account, depositing 40 cheques at a time, and $0 monthly fee transaction accounts.
But Nalder said the reasoning behind the fee hike didn't pass the pub test.
"It is a weak excuse by St George to say they are increasing these fees to have them align with their parent company Westpac, one of the Big Four banks," she said.
"Australia banks are already amongst the most profitable in the world and it is not due to efficiency but rather due to all the charges they impose on their customers, the cutting of branches and services and replacing workers with AI."
Businesses face 'uncertain' future amid record high insolvencies
Businesses across Australia have been battling rising costs in seemingly every direction.
Some have been hit by rising commercial rent prices, while others have battled a hike in the cost of their goods and services. Many have also faced fee increases in essentials like gas and electricity.
CreditorWatch tracks the health of the Australian business sector and how many become insolvent or are forced to close their doors forever.
More than 14,700 businesses became insolvent in the 2024-25 financial year, a 33 per cent increase from the previous year, with this trend hitting healthcare and education, retail, construction, and transport, postal and warehousing particularly hard.
While there has been some stabilisation in this trend, its still at historically elevated levels.
The credit reporting company noted that while interest rates appear to be on a downward trend, along with inflation, the future doesn't look bright for many industries.
"Significant uncertainty remains about the ultimate effects on economic growth globally and in Australia from President Trump's tariff and trade policies," it said in its July report.
"Other longer-term forces including AI and technology, the ageing of populations, rising inequality, climate change and geopolitics contribute to a challenging outlook for firms, though each trend also provides opportunity for business growth."