Australia's corporate regulator has launched civil penalty proceedings against Commonwealth Bank of Australia, alleging that about 42,000 business customers were overcharged roughly A$8.5 million in fees they were not told about. The Australian Securities and Investments Commission (ASIC) filed the case in the Federal Court on Thursday, saying the terms and conditions for the bank's CommBiz platform failed to disclose all of the fees charged on transactions. The bank says it reported the matter itself and will defend parts of the claim.

What ASIC alleges

ASIC alleges that around 42,000 CommBiz customers were overcharged about A$8.5 million ($5.82 million) in fees between November 2020 and 31 May 2025. CommBiz is the Commonwealth Bank's online business banking platform for medium-to-large businesses. According to the regulator, the platform's terms and conditions failed to accurately disclose all of the fees customers would face on direct debit and direct credit transactions, leaving businesses paying charges they had not been told about.

The regulator also alleges that the bank had received customer complaints about the issue from at least 2015, and that a 2016 internal audit had identified overcharging problems and required corrective action. ASIC Commissioner Alan Kirkland said the bank had failed to get the basics right, in comments reported by Australian Associated Press.

What the bank has done since

According to ASIC, the lender temporarily stopped charging the relevant fees in June 2025, amended the CommBiz terms in August 2025, and has waived the fees for processing direct debits and direct credits since February 2026. In a separate statement, Commonwealth Bank acknowledged the proceedings and said it had self-identified the matter, reported it to the regulator and cooperated fully with the investigation.

The bank added, however, that it does not accept the way some of the allegations have been framed, and expects to defend certain aspects of the claim while continuing to engage with the regulator. The allegations have not been tested in court, and no finding has been made against the bank.

What ASIC is seeking

ASIC is seeking declarations, pecuniary penalties, adverse publicity orders, ancillary orders and costs. The matter has not yet been listed for case management, so no hearing date has been set. The case is the first major action under ASIC Chair Sarah Court, who took office on 1 June, and it extends the regulator's recent tough stance on major financial groups.

Why the case matters

CommBiz is a flagship platform used by thousands of Australian businesses to manage payments, so the outcome will be watched closely by companies that rely on it and by other banks with similar fee disclosures. For now, the case turns on what the bank's terms said, what customers were actually charged, and whether the difference amounts to misleading conduct under Australian law. The Federal Court will decide those questions as the proceedings move forward. Sources: Reuters and Australian Associated Press.