By Tanya Faulkner
Small businesses are being hit with additional costs before the year is out.
The Commonwealth Bank of Australia have implemented increased fees to cash deposits made by business owners by more than three times the original amount.
Instead of a small $3 fee per cash deposit, businesses can now expect a $10 fee every time they bank their cash.
Those businesses who already pay a $10 cash deposit fee will now have reduced deposits available to them, dropping from 20 to just five.
Knox business owners, who have already been feeling increased financial pressure with inflation and cost of living impacting their livelihoods, are not happy with the new changes.
Curves Boronia owner Miriam Major is among those small business owners who these new fees will impact the most.
She said while she understands it’s not coming from a local angle, and said the Boronia branch of Commonwealth Bank has “been amazing” with her business, she is upset with the decision.
“I already have to pay to have my eftpos machine on site and pay on every transaction that goes through the terminal.
“Some of my gym members know this and pay cash, for others they only pay in cash because that’s all they have,” she said.
She describes the move by the Commonwealth Bank as a two-inch sword.
“For small businesses to then have to pay bigger fees for cash deposits to the bank is ridiculous.
“I don’t think it’s fair that we not only have to pay for our eftpos terminals in a more ‘cashless’ society, but now have to pay extra fees for cash deposits.
Ms Major explained that, should a member pay for membership or merchandise and use $100 in cash, $10 of that now goes to the bank, and the rest needs to be split between rent, wages and other overheads.
For Ms Major, these changes mean she will have to make less deposits to reduce fees, and work harder to budget around her already increased overheads.
“It means a lot more fees for small and local businesses in Knox.
“Everything has fees now, and we just keep getting hit,” she said.
According to reports released by the Commonwealth Bank, their reported cash net profit after tax (NPAT) for 2023 added up to $10,16 billion.
Ms Major questioned the banks’ decision to introduce more fees on businesses when their profits are so high.
“What about the little guys? What about the smaller businesses?
“Banks are always saying ‘we care about small business’ and giving the little guy a go, but this move says otherwise,” she said.
She said Victoria is moving too quickly to a cashless society, which she does not agree with entirely.
“Some of our members don’t trust banks because they have been ripped off or been victims to scams, so they only deal in cash these days.
“Other people who come here can only pay in cash, when they can,” she said.
There new fees are only one of several increased costs being faced by business owners.
Earlier this year, Victorians saw an increase of 5.75 per cent to the minimum wage, and another increase to the Super Guarantee to 11 per cent, which will continue to increase by 0.5 per cent until 2025.
Additionally, increases to the cost of living, supplies, rent and utilities have also taken their toll on local business owners.
Ms Major, who has been in business for approximately six months in Boronia and employs three staff, said it’s been really challenging.
“I did my due diligence before I bought the business, and I wasn’t expecting costs to go up as much as they have since then,” she said.
For many businesses, the road ahead appears to be an uphill battle, with many doing what they can to stay afloat.
“At Curves, we are trying to promote and work within the community.
“We have partnered with the Boronia Fire Brigade to raise money for them, we are supporting the National Breast Cancer Foundation this month, and we are trying to support other foundations and businesses to help the little guy in the community.
“Our members are also really generous when they can be,” she said.
Ms Major said the community can also get behind their local businesses in Knox, and share their support for their future.
“I urge locals to participate in local business shopping as much as they can.
“It’s all good to get stuff in from overseas from Shein or Temu, but small businesses can’t compete with those types of companies.
“Local is best; if everything goes off site, everything goes back out of Australia and we have nothing left for us here,” she said.
The increased Commonwealth Bank fees came into effect on October 1, 2023.
