Australians are getting wise to a new enemy in their budgets: junk fees. Whether booking flights, taking out a loan, or even just managing a basic bank account, these sneaky charges are everywhere. As 2025 unfolds, government policy is catching up—yet the real cost of junk fees lingers in everyday expenses. Here’s what’s happening, what’s changing, and how you can fight back.
What Are Junk Fees, and Why Are They Everywhere?
Junk fees are those hard-to-spot, often unavoidable charges tacked onto the price of goods or services. Think of ‘processing fees’ on concert tickets, ‘account keeping’ fees on your bank statement, or ‘late payment’ penalties on utilities. What unites them is a lack of transparency and, often, little to no value for the consumer.
- Banking and Loans: Australians have long battled monthly account keeping fees, personal loan establishment fees, and early exit penalties.
- Travel and Accommodation: Airlines and hotels love to add seat selection fees, baggage charges, and even ‘resort fees’ that weren’t made clear up front.
- Utilities and Telecom: Paper bill fees, payment processing fees, and obscure connection charges are routine offenders.
In a 2024 survey by Choice, 71% of respondents said they’d been hit with an unexpected fee in the past year. The average Australian household is estimated to pay over $1,000 annually in junk fees alone.
2025: A Turning Point for Junk Fee Regulation
The Albanese government kicked off a crackdown in late 2024, with major reforms rolling into 2025. Inspired partly by moves in the US and UK, Australia is tightening the leash on unfair charges:
- Consumer Data Right (CDR) reforms are making it easier for consumers to spot and compare total costs, including hidden fees, especially for financial products and utilities.
- Australian Competition and Consumer Commission (ACCC) investigations have led to fines for companies failing to disclose mandatory fees up front, particularly in ticketing and travel.
- ‘No Surprises’ pricing rules are rolling out across the banking and telco sectors, requiring all unavoidable fees to be included in the initial advertised price.
For example, from July 2025, all major banks must display the true cost of their products—including monthly account keeping fees, paper statement charges, and any early exit penalties—at the point of comparison. Similarly, airlines now face fines for advertising fares that don’t include baggage and seat selection fees where these are unavoidable.
How to Spot and Avoid Junk Fees in 2025
Even with new regulations, junk fees aren’t extinct. Companies often find creative ways to rename or restructure charges. Here’s how to stay ahead:
- Read the fine print: Scan all terms before confirming purchases, especially for travel, loans, and subscription services.
- Use comparison tools: The ACCC and independent sites now require total cost disclosure, making it easier to see the real price.
- Ask for waivers: Many banks and telcos will drop fees if you ask, especially if you’re a long-term customer or threaten to switch providers.
- Report misleading pricing: If you’re slugged with a fee you didn’t expect, report it to the ACCC or your state consumer affairs office.
Real-World Example: In early 2025, a Melbourne family booking a holiday was initially attracted by a $120 per night hotel deal. The final bill, after adding a ‘resort fee’, a mandatory cleaning fee, and a payment processing charge, came to $165 per night—a 37% markup. Under new rules, these fees must now be disclosed up front, but vigilance is still essential.
The Future of Junk Fees: Will They Ever Disappear?
While 2025 reforms are a positive step, the reality is that junk fees are profitable for businesses and unlikely to vanish completely. However, greater transparency and growing consumer awareness are forcing companies to compete more honestly. Expect further regulatory tightening if industries try to sidestep the new rules.
The bottom line: Aussies are more empowered than ever to dodge hidden charges, but the fight isn’t over. Keep your eyes peeled, speak up when you see unfair fees, and support businesses that price clearly and fairly.
