FOI 3766 Document Set Redacted.pdf

FOI 3766
QB24-000106
Document 1

Bank Branch Closures

KEY MESSAGE
•
Closing a bank branch is a commercial decision and banks need to explain
these decisions to their customers.
•
The Government is concerned about the impact of bank closures in rural and
regional Australia on communities who need access to face-to-face banking
services, as wel  as on smal  businesses that need to access and deposit
cash.
•
The Government is currently considering the recommendations within the
report by the Senate Rural and Regional Affairs and Transport References
Committee regarding Bank closures in regional Australia, Protecting the future
of regional banking.
KEY FACTS AND FIGURES
•
Declines in the number of bank branches have been driven by shifts in
consumer demand, including from new technologies.
–  Released on 18 October 2023, the Australian Prudential Regulation
Authority’s (APRA’s) Points of Presence publication showed that the
number of branches in regional and remote Australia fel  by 34 per cent
from June 2017 to June 2023, mainly driven by the major banks.
•
Many of the services offered by branches are available in other ways.
–  Telephone, internet, and mobile apps provide banking services in a way
that is convenient, fast, secure, and easy-to-use.
–  Consumers and smal  businesses can make withdrawals, deposits, and
balance enquiries at around 3,400 Australia Post offices through
Bank@Post.
•
The Senate Rural and Regional Affairs and Transport References Committee
(the Committee) released its report into bank closures in regional Australia on
24 May 2024.
•
The Committee made 8 recommendations:
Page 1 of 5
Office Responsible
Treasurer - The Hon Jim
Adviser
s 22

Chalmers MP
Contact Officer
s 22

Contact Number
s 22

Division responsible  Financial System Division
Date of Update
30 September 2024

QB24-000106
BANKING

Bank Branch Closures

–  Recognise access to financial services an essential service and commit to
guaranteeing reasonable access to cash and financial services for al
Australians.
–  Commission an expert panel to investigate the feasibility of a publicly
owned bank, including using Australia Post’s branch network.
–  Develop a mandatory code of conduct incorporating a robust branch
closure processes to be administered by a regulator. Require financial
institutions to consult with communities before a branch is closed, report
on the potential impacts of closure, identify alternative financial services in
the event of closure, and fund transition arrangements and ongoing
support services fol owing a closure.
–  Authorising the regulator to approve or defer closure requests, direct
banks to take certain reasonable actions and apply penalties if a bank fails
to comply with an order to defer closure.
–  Commission the ACCC to explore the barriers to customers switching
banks.
–  Establish a Regional Community Banking Branch Program to help
underwrite the establishment of ‘community bank’ branches. Local
Government would be required to raise their own capital as wel . Consider
whether to use this fund to enhance financial services available at
Australia Post. Hypothecate funds from a supplement to the Major Banks
Levy to fund the program.
–  Require al  major banks to have agreements with Bank@Post and to
harmonise the terms of Bank@Post agreements to improve fairness and
sustainability. Levy major banks which do not put in place agreements with
Bank@Post.
–  ACCC consider measures to protect access to personal and business
banking in regional, rural and remote locations, including proposing
authorisations to circumvent anti-competitive laws such that banks can
Page 2 of 5
Office Responsible
Treasurer - The Hon Jim
Adviser
s 22

Chalmers MP
Contact Officer
s 22

Contact Number
s 22

Division responsible  Financial System Division
Date of Update
30 September 2024

QB24-000106
BANKING

Bank Branch Closures

cooperate for the purpose of reducing the impact of branch closures in
regional communities.
•
As part of the Government’s recent approval of ANZ’s acquisition of Suncorp
Bank, ANZ agreed to conditions which include:
–  No regional bank branch closures for ANZ or Suncorp Bank for 3 years.
–  No net job losses across Australia, including regional Australia for Suncorp
Bank and ANZ, as a result of the transaction, for three years.
–  Suncorp Bank to renew its current agreement with Australia Post for the
provision of Bank@Post services for a minimum of three years.
–
ANZ to make best endeavours to join Bank@Post on commercial terms for
a minimum of three years.

Page 3 of 5
Office Responsible
Treasurer - The Hon Jim
Adviser
s 22

Chalmers MP
Contact Officer
s 22

Contact Number
s 22

Division responsible  Financial System Division
Date of Update
30 September 2024

QB24-000106
BANKING

Bank Branch Closures

BACKGROUND
Points of Presence statistics
•
Released on 18 October 2023, APRA’s Points of Presence publication showed
that the number of branches in regional and remote Australia fel  by
34 per cent from June 2017 to June 2023, mainly driven by the Major Banks.
–  The decline in regional and remote branches was lower than the decline in
the number of branches in metro areas, which fel  by 39 per cent over the
same period
–  However, the decline in bank branches across Australia of 11 per cent
from June 2022 to June 2023 represents the largest annual percentage
decline in the number of bank branches in 6 years
–  Westpac was the largest contributor to bank branch closures, closing
61 regional and remote branches (24 per cent of its network), and a total
of 167 branches across Australia (22 per cent of its network) from
June 2022 to June 2023. This decline is in part due to the consolidation of
branches of brands under the Westpac Group.
•
The next annual data release is expected on 16 October 2024.
Bank@Post
•
Bank@Post involves around 3,400 Post Offices acting as an agent for banks,
providing banking services to customers of over 80 banks and other financial
institutions. This includes more than 1,800 Post Offices in rural and remote
locations.
–  CBA, NAB and Westpac al  offer services through Bank@Post. ANZ and
Macquarie do not currently participate in Bank@Post
–  Bank@Post services include depositing cash and cheques, withdrawing
cash and checking account balances
–  Separate to Bank@Post, Australia Post also offers other financial services
including Post Bil Pay, currency exchange, insurance and international
money transfer with Western Union.

Page 4 of 5
Office Responsible
Treasurer - The Hon Jim
Adviser
s 22

Chalmers MP
Contact Officer
s 22

Contact Number
s 22

Division responsible  Financial System Division
Date of Update
30 September 2024

QB24-000106
BANKING

Bank Branch Closures

•
On 18 June 2024 Australia Post stated that Bank@Post is on a trajectory of
significant financial losses unless bank partners provide additional funding
while appearing at the Environment and Communications Legislation
Committee.
•
The Government is currently considering the recommendations within the
report by the Senate Rural and Regional Affairs and Transport References
Committee regarding Bank closures in regional Australia, which include
recommendations relating to Bank@Post.
Recent changes announced by banks
•
ANZ announced it would be closing its Katoomba branch in October 2024,
sparking incorrect claims that the bank is violating the conditions of the
Suncorp acquisition.
–  Katoomba is not classified a regional area according to the Australian
Bureau of Statistics’ Australian Statistical Geography Standard.
–  The bank states that it has given a six month notice period in accordance
with the Australian Banking Association’s Branch Closure Support
Protocol.
•
In August 2024, Bank of Queensland announced it would be abandoning its
franchise network model and would be taking control of 114 franchised outlets
from March 2025 at a cost of up to $125 mil ion.
–  Bank of Queensland announced the changes would provide further
opportunities to consolidate branches as customers shift to digital
channels.

Page 5 of 5
Office Responsible
Treasurer - The Hon Jim
Adviser
s 22

Chalmers MP
Contact Officer
s 22

Contact Number
s 22

Division responsible  Financial System Division
Date of Update
30 September 2024

FOI 3766
Document 2
s 47F
s 47F

FOI 3766
Document 3
s 47F
s 47F

FOI 3766
Document 4
s 47F
s 47F

FOI 3766
Document 5
s22
From:
Jones DLO
Sent:
Monday, 19 August 2024 3:57 PM
To:
Min Processing
Cc:
Jones DLO
Subject:
FSD - ANZ Bank Branch in Bega
OFFICIAL

Department response please.

s22

Oﬃce of the Hon Stephen Jones MP
Assistant Treasurer and Minister for Financial Services
s22
E xxxxxxxx@xxxxxxxx.xxx.xx
M1.27, Parliament House, Canberra, ACT 2600
LGBTIQ+ Ally

The Treasury acknowledges the tradi onal owners of country throughout Australia, and their con nuing connec on to land,
water and community. We pay our respects to them and their cultures and to elders both past and present.

OFFICIAL
From: s22

Sent: Monday, August 19, 2024 3:45 PM
To: Jones DLO <xxxxxxxx@xxxxxxxx.xxx.xx>
Subject: FW: Website Contact

From: Chalmers, Jim (MP) <xxx.xxxxxxxx.xx@xxx.xxx.xx>
Sent: Monday, August 19, 2024 3:41 PM
To: Jones, Stephen (MP) <xxxxxxx.xxxxx.xx@xxx.xxx.xx>
Fully out of scope
Subject: FW: Website Contact
pages have been

deleted from the
Hi team,
document set

The following correspondence has been reviewed and this office considers that the matter raised falls more
appropriately within your portfolio responsibility. Therefore, we’re referring it to your office for your attention and
consideration.

Kind regards,
Office of the Hon. Jim Chalmers MP | Treasurer and Federal Member for Rankin

From: s 47F
On Behalf Of s 47F

Sent: Sunday, August 18, 2024 10:12 AM
To: Chalmers, Jim (MP) <xxx.xxxxxxxx.xx@xxx.xxx.xx>
Subject: Website Contact
1

FOI 3766
Document 6
s22
From:
Chalmers, Jim (MP) <xxx.xxxxxxxx.xx@xxx.xxx.xx>
Sent:
Monday, 19 August 2024 2:49 PM
To:
Min Processing
Subject:
FSD - Bank Closures

From: s 47F
On Behalf Of s 47F

Sent: Sunday, August 18, 2024 8:16 PM
To: Chalmers, Jim (MP) <xxx.xxxxxxxx.xx@xxx.xxx.xx>
Subject: Website Contact
s 47F
1

FOI 3766
Document 7
s22
From:
s 22
@aph.gov.au>
Sent:
Friday, 23 August 2024 12:57 PM
To:
Min Processing
Cc:
Jones DLO
Subject:
FSD - Bega Valley who is also a customer of ANZ bank

From: Chalmers, Jim (MP) <xxx.xxxxxxxx.xx@xxx.xxx.xx>
Sent: Wednesday, August 21, 2024 4:34 PM
To: Jones, Stephen (MP) <xxxxxxx.xxxxx.xx@xxx.xxx.xx>
Subject: FW: Website Contact

Hi Team,

The following correspondence has been reviewed and this office considers that the matter raised falls more
appropriately within your portfolio responsibility. Therefore, we’re referring it to your office for your attention and
consideration.

Kind regards,
Office of the Hon. Jim Chalmers MP | Treasurer and Federal Member for Rankin

From:s 47F
On Behalf Of s 47F

Sent: Wednesday, August 21, 2024 1:59 PM
To: Chalmers, Jim (MP) <xxx.xxxxxxxx.xx@xxx.xxx.xx>
Subject: Website Contact
s 47F

FOI 3766
Document 8
s22
s 22
From: s22
@TREASURY.GOV.AU>
Sent: Wednesday, July 10, 2024 5:30 PM
To: s22
@TREASURY.GOV.AU>
Subject: RE: ANZ Regional Bank Closures - constituent inquiry [SEC=OFFICIAL]

OFFICIAL

Yes, please. Let me know how you go.

Thanks s22

Kind regards,
________

s22

Office of the Hon Jim Chalmers MP | Treasurer
s22
E s22
@treasury.gov.au

OFFICIAL
From: s22
@TREASURY.GOV.AU>
Sent: Wednesday, July 10, 2024 5:29 PM
To: s22
@TREASURY.GOV.AU>
Subject: RE: ANZ Regional Bank Closures - constituent inquiry [SEC=OFFICIAL]

OFFICIAL

Hi s22

1

See ABS map of remoteness areas as against the Australian Sta s cal Geography Standard (ASGS) Edi on 3, as
published by the Australian Sta s cian on 20 July 2021.

You will see that Bega is in “outer regional australia” which is covered by the ANZ/Suncorp branch closure
commitment.

Did you want me to raise with s22

Kind regards,

s22

Banking Unit, Financial System Division
The Treasury, 1 Langton Cres, Parkes, ACT 2603
s22

Twi er | LinkedIn | Facebook

The Treasury acknowledges the tradi onal owners of country throughout Australia, and their con nuing connec on to land,
water and community. We pay our respects to them and their cultures and to elders both past and present.

LGBTIQ+ Ally

OFFICIAL
From: s22
@TREASURY.GOV.AU>
Sent: Wednesday, July 10, 2024 5:16 PM
To: s22
@TREASURY.GOV.AU>
Subject: FW: ANZ Regional Bank Closures - constituent inquiry [SEC=OFFICIAL]
2

OFFICIAL

Hi s22

Is this branch outside the commitment? Thanks.

Kind regards,
________

s22
   | Office of the Hon Jim Chalmers MP | Treasurer
s22
@treasury.gov.au

OFFICIAL
From: Chalmers CLO <xxxxxxxxxxx@xxxxxxxx.xxx.xx>
Sent: Wednesday, July 10, 2024 4:58 PM
To: s22
@TREASURY.GOV.AU>
Subject: FW: ANZ Regional Bank Closures - constituent inquiry [SEC=OFFICIAL]

OFFICIAL

OFFICIAL

His22

Do you have any advice on a response to this one at all?

Thanks,
s22
OFFICIAL

OFFICIAL
From: s 22
@aph.gov.au>
Sent: Wednesday, July 10, 2024 4:55 PM
To: Chalmers CLO <xxxxxxxxxxx@xxxxxxxx.xxx.xx>
Subject: ANZ Regional Bank Closures - constituent inquiry

Dear s22
s 47F
s 47F
who is most upset that the Bega ANZ branch is closing in October, with the
closest branch now a 3 hour drive away in Woden.

s 47F
s 47F
all was ﬁne given the announcement that ANZ was purchasing  Suncorp and
had read in the SMH (Sat 29 June)

“As part of the approval, Chalmers announced requirements that wil  stop ANZ and Suncorp from closing regional branches
across Australia for three years”

However bank workers in the Bega branch have told s 47F
that the branch will still be closing.

s 47F  contacted us to clarify why this is happening.
3

Can you advise? Note that the announcement to close the branch was made a number of weeks before the
announcement of the terms of the merger.

Many thanks
s 22
O ice of the Hon Kristy McBain
Member for Eden-Monaro
1/21-25 Monaro Street | Queanbeyan NSW 2620 |  02 6284 2442
1/225 Carp Street  | Bega NSW 2550 | 02 6492 0542
Parliament House  | Canberra ACT 2600 | 02 6277 7060

We acknowledge the Ngambri, Ngunnawal, Wiradjuri, Ngarigo and Yuin people as Traditional Owners
of Country in the Eden-Monaro Electorate.

We recognise their continuing connection to lands, waters and communities and pay our respect to
Aboriginal and Torres Strait Islander cultures; and to Elders past, present and emerging

4

FOI 3766
Document 9
s22
s 22

From: Media <xxxxx@xxxxxxxx.xxx.xx>
Sent: Wednesday, August 21, 2024 12:29 PM
To: s22
@TREASURY.GOV.AU>
Subject: RE: Bega ANZ branch [SEC=OFFICIAL]

OFFICIAL

Thank you s22

s22

Media, Communications Branch

OFFICIAL
From: s22
@TREASURY.GOV.AU>
Sent: Tuesday, August 20, 2024 5:08 PM
To: s22
@TREASURY.GOV.AU>; Media <xxxxx@xxxxxxxx.xxx.xx>; s22

@TREASURY.GOV.AU>
Subject: RE: Bega ANZ branch [SEC=OFFICIAL]

OFFICIAL

I have spoken to ANZ and they have confirmed that they are about to announce that they are reversing the prior
announcement that they are closing the Bega branch.

We can tell the office that
1

Kind regards,

s22

Banking Unit, Financial System Division
The Treasury, 1 Langton Cres, Parkes, ACT 2603
s22

Twi er | LinkedIn | Facebook

The Treasury acknowledges the tradi onal owners of country throughout Australia, and their con nuing connec on to land,
water and community. We pay our respects to them and their cultures and to elders both past and present.

LGBTIQ+ Ally

OFFICIAL
From: s22
@TREASURY.GOV.AU>
Sent: Tuesday, August 20, 2024 4:09 PM
To: Media <xxxxx@xxxxxxxx.xxx.xx>; s22
@TREASURY.GOV.AU>
Cc: s22
@TREASURY.GOV.AU>
Subject: RE: Bega ANZ branch [SEC=OFFICIAL]

OFFICIAL

Very much appreciated – Thanks s22

Kind regards
s22

OFFICIAL
From: Media <xxxxx@xxxxxxxx.xxx.xx>
Sent: Tuesday, August 20, 2024 4:08 PM
To: s22
@TREASURY.GOV.AU>; Media <xxxxx@xxxxxxxx.xxx.xx>; s22

@TREASURY.GOV.AU>
Cc: s22
@TREASURY.GOV.AU>
Subject: RE: Bega ANZ branch [SEC=OFFICIAL]

OFFICIAL

Thank you s22  and all.
s 47E(d)
Kind regards,

s22
2

s22

Media, Communications Branch

OFFICIAL
From: s22
@TREASURY.GOV.AU>
Sent: Tuesday, August 20, 2024 4:03 PM
To: Media <xxxxx@xxxxxxxx.xxx.xx>; s22
@TREASURY.GOV.AU>
Cc: s22
@TREASURY.GOV.AU>
Subject: RE: Bega ANZ branch [SEC=OFFICIAL]

OFFICIAL

Hi s22

Upfront we want to be very clear that we have no information confirming whether the Bega ANZ Branch is or is
not closing.
To that end we, received some ministerial correspondence from a member of the public two days ago (18
August  2024) asking the treasurer to please stop the branch being closed. As you mentioned you have raised
this with the T.O, please find below some background context of the ANZ-Suncorp merger conditions.

On 28 June 2024, the Treasurer announced that ANZ’s proposed acquisition of Suncorp Bank could only
proceed subject to strict conditions directed at protecting the customers and staff of both organisations.
The Treasurer required that:
  For a period of three years, there be no net reduction in regional and remote bank branches
operated by ANZ or Suncorp Bank, Australia wide.
  For a period of three years, there be no net job losses as a result of the transaction across both
organisations, Australia wide.
  Suncorp maintain its agreements with Bank@Post and ANZ make best endeavours to join
Bank@Post.

The Bega ANZ branch was covered by the first of these conditions imposed by the Treasurer, as a ‘regional’
ANZ bank branch.

Let us know if you have any further questions.

Kind regards
s22

OFFICIAL
From: Media <xxxxx@xxxxxxxx.xxx.xx>
Sent: Tuesday, August 20, 2024 2:42 PM
To: s22
@TREASURY.GOV.AU>; s22

@TREASURY.GOV.AU>; Media <xxxxx@xxxxxxxx.xxx.xx>
Subject: FW: Bega ANZ branch [SEC=OFFICIAL]
Importance: High

OFFICIAL

3

Hi s22

s 47E(d)

They would like some context/info that might connect with Government policy please.

Can you suggest some lines that might be helpful?

Thank you kindly,

s22

Media, Communications Branch

OFFICIAL
From: s22
@TREASURY.GOV.AU>
Sent: Tuesday, August 20, 2024 2:04 PM
To: Media <xxxxx@xxxxxxxx.xxx.xx>
Cc: Treasurer Media <xxxxxxxxxxxxxx@xxxxxxxx.xxx.xx>
Subject: FW: Bega ANZ branch [SEC=OFFICIAL]
Importance: High

OFFICIAL

Team can you prepare a response to below please.
Think this is the result of our policy.
s22

From: s 47F

Sent: Tuesday, August 20, 2024 11:27 AM
To: Chalmers, Jim (MP) <xxx.xxxxxxxx.xx@xxx.xxx.xx>
Subject: Bega ANZ branch

Hello,

I have heard the Bega ANZ branch may not be closing and will instead have it’s opening hours reduced?

This is big news for the regional community. Can you confirm?

Thanks for your time.

s 47F
4

FOI 3766
Document 10
s22
s 22

From: s22

Sent: Wednesday, July 10, 2024 5:51 PM
To: s 22
@anz.com>
Cc: Preston, Robb s22
s22
@TREASURY.GOV.AU>
Subject: Regional Branch Closures [SEC=OFFICIAL]

OFFICIAL

Hi s 47F

The Treasurer’s oﬃce have advised that they have been contacted by the Member for Eden-Monaro.

s 47F

s 47F
when asking if the ANZ/Suncorp approval announcement means it is no longer
closing in October, ANZ branch staﬀ have told them that the branch will s ll be closing.

The oﬃce has asked us to reach out to ANZ and ask for conﬁrma on that (as per the ABS regional areas map below)
Bega is caught by the branch closures freeze?

1

FOI 3766
Document 11
s22
From:
s22
Sent:
Monday, 9 September 2024 3:20 PM
To:
s22
Cc:
Baird, Tim; Kelly, Lynn
Subject:
Katoomba ANZ branch closing [SEC=OFFICIAL]
OFFICIAL

Hi s22

Heads up on possible issue that might develop. ANZ is shu ng the Katoomba branch. s 47E(d)
.
People may ques on why it is permi ed notwithstanding the Suncorp FSSA condi ons.

Is that a Banking Unit issue (as it relates to FSSA condi ons) or is it a Retail Banking Unit issue (as it related to
regional bank branches)?

It is not in breach of the Suncorp FSSA condi on not to close regional or remote branches – Katoomba is classiﬁed as
‘major capital city’.

See map
h ps://maps.abs.gov.au/ Choose boundary: “2021 Remoteness Area”. Search for Katoomba. Right click on the
town to get the ABS remoteness classiﬁca on (which is what the FSSA condi ons use in the prohibi on of branch
closures in regional or remote Australia)

Kind regards,

s22

Banking Unit, Financial System Division
The Treasury, 1 Langton Cres, Parkes, ACT 2603
s22

Twi er | LinkedIn | Facebook

The Treasury acknowledges the tradi onal owners of country throughout Australia, and their con nuing connec on to land,
water and community. We pay our respects to them and their cultures and to elders both past and present.

LGBTIQ+ Ally

OFFICIAL
1

FOI 3766
Document 12
s22
From:
s22
Sent:
Thursday, 5 September 2024 2:54 PM
To:
MG FSD Banking; s22
Cc:
s22
Subject:
RE: For info: ANZ appearance at House of Representatives, Standing Committee,
Economics Today - Notes [SEC=OFFICIAL]
Attachments:
s22
OFFICIAL

Hi All

Building on s22
notes below, please ﬁnd a ached the transcripts from both days of this commi ee which have
now been made available for reference.

Kind regards,

s22
Banking Unit | Financial System Division
Markets Group

The Treasury acknowledges the traditional owners of country throughout Australia, and their continuing connection to land,
water and community. We pay our respects to them and their cultures and to elders both past and present.

OFFICIAL
From: s22
@TREASURY.GOV.AU>
Sent: Friday, August 30, 2024 3:55 PM
To: MG FSD Banking <xxxxxxxxxxxx@xxxxxxxx.xxx.xx>; s22
@treasury.gov.au>; s22
@TREASURY.GOV.AU>; s22

@TREASURY.GOV.AU>
Subject: For info: ANZ appearance at House of Representatives, Standing Committee, Economics Today - Notes
[SEC=OFFICIAL]

OFFICIAL

Hi all,

Thought I would circulate some notes given there is some topical issues that were discussed at ANZ’s appearance to
the Standing Commi ee today (so far).

Feel free to on-send.

ANZ A endees
  Mr Shayne Ellio , Chief Execu ve Oﬃcer and Execu ve Director
  Mrs Maile Carnegie, Group Execu ve, Australia Retail
s 22

s 22
Regional banking
  Leaned on condi ons placed on the bank under the FSSA for response to ques ons on bank branches and
Bank@post.
o  Unable to close branches for 3 years
o  Must make best endeavours to progress dealings with Australia Post on par cipa on in Bank@post.
  Main reason not already signed up to Bank@post is that they believed the deal for them to join was
unfavourable compared to the other major banks.
o  Smallest retail bank of the majors, less than half the size of CBA. Oﬀer that non-majors received was
signiﬁcantly cheaper.
o  Have inherited Suncorp Bank’s Bank@post agreement which they will be able to learn from and
honour.
  No silver bullet for regional banking. Challenge around the world but Australia has addi onal challenges due
to its geographic size.
  In response to vulnerable cohorts such as elderly cohorts being impacted by branch closures:
o  “Bright future for branches”.
o  For the convenience of the majority can’t leave behind minority.

s 22

Kind regards,

s22
Banking Unit, Financial System Division
Phs22

The Treasury acknowledges the tradi onal owners of country throughout Australia, and their con nuing connec on to land,
water and community. We pay our respects to them and their cultures and to elders both past and present.

OFFICIAL
2

FOI 3766
Document 12a

COMMONWEALTH OF AUSTRALIA

Proof Committee Hansard

HOUSE OF
REPRESENTATIVES

STANDING COMMITTEE ON ECONOMICS

Review of Australia’s four major banks

(Public)

FRIDAY, 30 AUGUST 2024

CANBERRA

CONDITIONS O
F DISTRIBUTION
This is an uncorrected proof of ev
idence taken before the committee.
It is made available under the condition that it is recognised as such.

BY AUTHORITY OF THE HOUSE OF REPRESENTATIVES

[PROOF COPY]

Friday, 30 August 2024
House of Representatives
Page 58
Part  of  that  will  come  down  to  the  necessity  for  investment  in  the  broader  sense,  whether  that's  foreign
investment  or  whether  that's  domestic  investment.  My  predecessor  used  to  say,  quite  rightly,  that  capital  goes
where  it's  welcome.  Despite  all  the  prosperity  in  this  nation,  we're  still  a  growing  country  and  a  country  of
opportunity. That will require capital, and we need to be a welcoming place for that capital. A welcoming place
for capital means regulatory settings and tax settings but also the broader social environment. Is this a place that
celebrates success, encourages entrepreneurship and celebrates large, successful businesses or not? There is a lot
there that I think the government can do.
With your question, I know you're interested in tax. That's not an area of my expertise, but tax matters. It is one
of those factors that play into it. In my experience—and I've worked in multiple places around the world—and
taking my role as the CEO of ANZ and talking to a lot of our customers, which tend to be the big end of town,
companies  can  deal  with  all  sorts  of  settings,  and  they'll  make  do.  What  they're  really  looking  for  is  clarity,
predictability and simplicity. All three of those things to some extent could be worked on in Australia.
Ms SPENDER:  Thank you. I appreciate your time. I'll hand back to the chair.
CHAIR:    I  just  have  a  couple  of  quick  follow-ups.  Firstly,  we  talked  earlier  about  regional  and  rural  bank
closures. Can you just remind me what the current position is?
Mr Elliott:  We agreed with the federal Treasurer that we will not close any regional branches, either Suncorp
or ANZ, for a period of three years from the date of acquisition, which was a month ago.
CHAIR:    I've  had  some  feedback  that  there's  active  discussion  going  on  in,  I  think,  Katoomba  and
Murwillumbah around this and that there are actually petitions and discussions in the community and pushback on
some scheduled closures for October.
Mr  Elliott:    They  were  ones  that  were  already  in  train  before  the  condition  was  even  discussed  with  us.
Outside of the current moratorium, there's quite a long consultation period, and we give communities a reasonable
amount of notice. We say, 'This is what we're going to do,' and we talk to people about what alternatives will be
put in place. Some of those had already started. When the federal Treasury put the requirements in place, they
were literally right towards the end of our negotiations. When we kicked off those branch closures, we weren't
aware that we were going to make that obligation, and that's why they were caught in the middle. We're relooking
at those ones.
CHAIR:  So you're relooking at them?
Mr Elliott:  Yes.
Mrs Carnegie:  Specifically, with Katoomba, we are planning to go through with that closure. There were four
branches  that  were  caught  up  in  that  zone  where  we  had  announced  the  closures  before  we  knew  about  the
requirement  as  part  of  the  Suncorp  acquisition.  We  have  reversed  two  of  them  because  they  were  clearly  in
regional areas and we were able to reverse them. We are going forward with Katoomba, and we have shared this
with the government. The issue with Murwillumbah is that that branch is actually not fit for purpose, and so we're
closing it, but we are actively exploring an alternative site.
Mr Elliott:  Just to be clear, it is not fit for purpose for health reasons.
Mrs Carnegie:  Yes.
CHAIR:  Is this post floods?
Mr Elliott:  It's suffering from mould, so it's not habitable by people.
Mrs Carnegie:  Yes.
CHAIR:  Okay. I might follow up with clarification on those two. It's an awkward one. I can imagine that in
those communities they kind of see a commitment, and it would be jarring. I'm interested also in your analysis of
community need for branches, and this isn't just regional and rural; this is face-to-face engagement. I'm interested
in  the  extent  to  which  you've  undertaken  analysis  of  how  much,  for  example,  elderly  customers—but  also
potentially  others—might  end  up  relying  upon  family  members  or  friends  to  do  their  banking  for  them  or
basically be a person who helps them with their banking.
Mrs Carnegie:  Obviously, before we close a branch, we understand that, as you said, regardless of whether
it's  regional,  rural  or  in  the  city,  there  are  members  of  the  community  that  use  the  branches  and  they're  a
significant part of their current habits and practices. So we don't, obviously, close a branch lightly, but, when we
do, one of the things we have in place is a customer care team. What that customer care team will do is go and
actually analyse our customer data to identify anybody who is over the age of 65 and anybody who has used the
branch more than two times in the last, I think, six months. We'll also identify small businesses that are frequent

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Friday, 30 August 2024
House of Representatives
Page 59
users  of  the  branch.  So  we  kind  of  have  a  filter  to  try  and  recognise  who  are  people  who  are  most  at  risk  of
finding the branch closure difficult.
We will proactively reach out to those individuals—the customer care team will—and we will start working
with them, well in advance of the branch closure, to start to help them understand what alternatives there may be.
So, firstly, we seek to understand what their needs are and then put in place alternatives for them. A lot of that is
to do with education: 'Actually, you can do this via the ATM.' We will go and literally do in-person sessions with
them to help them understand how they can do that. It might be phone branching. So we will go through a series
of steps, and then the team will identify whether or not there are individuals who then need follow-up post the
branch closure. So we try and wrap as much support as we can around the closure of that branch, again through
the identification. When I talk to that team, obviously, they have mentioned times where people have got family
members who can support them, but we work with them to try and help to identify how the individual can do the
banking themselves. I can go back and understand how big a problem that is, and I can take that on notice.
CHAIR:  Yes, that would be useful. Sometimes it works well. Sometimes families want to do that. Sometimes
it can lead to exposures, obviously.
Mrs Carnegie:  Yes.
CHAIR:  I saw this in my electorate in COVID, where a lot of older people used their children—or not used
but worked with their children—to navigate government services or banking or whatever it might be.
Mrs Carnegie:  Yes.
CHAIR:  And then suddenly the five-kay limit meant they couldn't do that easily, and it really led to a lot of
challenging situations. So a follow-up on that would be great.
One of the issues, obviously, coming out of the royal commission—I'll put this to all of the banks—was that,
where there were clear cases of poor behaviour, the banking industry—I think Anna Bligh said this—said, 'We'll
pay every penny back.' Are you aware of how many legacy cases are still unresolved at this point?
Mrs Carnegie:  All of the cases specific to the royal commission have been closed and reimbursed. Obviously,
we went beyond those to identify,  because there was an individual case, whether there were other examples of
that.  We  are  still  working  through  those.  I  think  there  are  quite  a  number  that  are  going  to  be  closed  out  by
December, but we're also proactively continuing to look. Again, often it's got nothing to do with poor behaviour;
it's just—
CHAIR:  Mistakes.
Mrs Carnegie:  A mistake may happen. For example, I've just opened a remediation case because I found out
that for term deposits, if a term deposit term finishes on the weekend and a customer makes any kind of changes
to that term deposit over the weekend, we may not have been calculating the interest on that right. I just recently
discovered  that.  I  think  there's  going  to  be  an  ongoing  run  of,  hopefully,  increasingly  smaller  and  smaller
examples of things we find, but we're really trying to make sure that we find them quickly and remediate them
quickly as well. Again, there are going to be a few that are left over from December, and I'm happy to come back
to you on what those specific remediations are.
CHAIR:  I'll follow up. Ms Lawrence asked a lot of questions about the AFCA cases, and so I'm interested in a
little  bit  of  a  breakdown  of  areas  where  there  are  cases,  but  we're  also  trying  to  look  at  it,  for  example,  per
thousand customers, just to make sure we're normalising it in appropriate ways. I'm interested in what the trend in
the number of court cases that ANZ isn't—
Mr Elliott:  Court?
CHAIR:    AFCA  is  obviously  the  preferred  route,  where  possible.  It  can't  be  used  for  all  situations,  but
sometimes things go into more formal legal proceedings—
Mr Elliott:  It's a good question.
CHAIR:  What's the five-year trend, say, and how many court cases are on foot at any point in time?
Mr Elliott:  I'd have to take that on notice and come back to you. Thankfully, it's relatively modest. It's not a
big number, but I couldn't tell you what the trend is. I will come back to you on that. I don't have that off the top
of my head.
CHAIR:  I'll put that to all the banks. I think I know the answer to this, but is ANZ formally committed to
being a model litigant?

ECONOMICS COMMITTEE

FOI 3766
Document 13
s22
From:
s22
Sent:
Tuesday, 10 September 2024 11:05 AM
To:
s22
Cc:
Subject:
RE: FW: BCIB media report [SEC=OFFICIAL]
Happy to leave this with you all – thank you. I suggest if any MCs come through on this they could be led by you too,
if ANZ/Suncorp text is needed please let us know.

Cheers,
s22


s22

Banking and Credit Unit – Banking and Credit Branch
Financial System Division

The Treasury acknowledges the tradi onal owners of country throughout Australia, and their con nuing connec on to land,
water and community. We pay our respects to them and their cultures and to elders both past and present.

LGBTIQ+ Ally

From: s22
@TREASURY.GOV.AU>
Sent: Tuesday, September 10, 2024 10:42 AM
To: s22
@treasury.gov.au>; s22

@TREASURY.GOV.AU>
Cc: s22
@TREASURY.GOV.AU>
Subject: FW: FW: BCIB media report [SEC=OFFICIAL]

OFFICIAL

Hey s22
– just flagging this ANZ Katoomba branch closure issue in addition to the BoQ branch closures
also recently announced.

I think the Regional Banking QTB should be updated QB24-000106. Guidance on PDMS suggests it can be updated
outside of 10am-4pm on a sitting day (parliamentary calendar).

s22
– this might be a good task for s22
. If he prepares cleared text perhaps we can drop it in
after 4pm or on Friday 13 Sep?

s22

OFFICIAL
From: s22
@TREASURY.GOV.AU>
Sent: Tuesday, September 10, 2024 9:30 AM
1

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