Understanding Financial Fees in Australia (2025 Guide)

Fees are the silent drain on many Australians’ finances, chipping away at your savings, investments, and everyday spending. As the finance industry evolves in 2025—with new regulations, digital banking, and shifting market conditions—it’s never been more important to understand what you’re paying for, why, and how to avoid unnecessary costs.

Why Fees Matter More Than Ever in 2025

Australians are facing a complex fee landscape. Banks, superannuation funds, investment platforms, and lenders all charge various fees, some overt and others buried deep in product disclosure statements. With the Australian Competition and Consumer Commission (ACCC) continuing to scrutinise hidden charges and the federal government introducing new transparency rules this year, financial providers are under pressure to be clearer—but the onus is still on consumers to stay informed.

• Banking fees: Account-keeping, ATM, and international transaction fees remain common, though many digital banks have moved to fee-free models.
• Superannuation fees: Administration and investment fees can significantly erode retirement balances, especially as new performance tests in 2025 force underperforming funds to disclose costs more openly.
• Investment platform fees: Brokerage, account management, and performance fees vary widely between platforms—comparison is crucial.
• Loan-related fees: From application fees to ongoing service charges, home and personal loan customers must read the fine print.

Types of Fees to Watch For

Not all fees are created equal. Here’s how the most common categories break down in 2025:

• Upfront fees: Charged at the start of a product or service, such as loan application or establishment fees.
• Ongoing fees: Regular charges, like monthly account-keeping or annual membership fees.
• Transactional fees: Pay-per-use charges, including ATM withdrawals, international card usage, or share trading.
• Exit or break fees: Costs for closing an account or breaking a contract early, such as early loan repayment fees.
• Performance-based fees: Common in investment products, these are charged when returns exceed a specific benchmark.

Recent regulatory changes have forced many providers to rework or remove certain fees. For example, as of July 2025, all superannuation funds must now display a single, all-inclusive “total cost” figure, making it easier to compare products at a glance.

How to Compare and Minimise Fees

Even small fees can add up over time. Here’s how to keep them in check:

• Read product disclosure statements: Take time to review the full fee schedule before signing up for any financial product.
• Use comparison tools: ASIC’s MoneySmart and independent aggregators offer updated side-by-side comparisons of fees across banks, super funds, and investment platforms.
• Ask for fee waivers: Many banks and lenders will negotiate or waive fees, especially for loyal customers or those consolidating accounts.
• Switch providers: With open banking now standard across Australia, it’s easier than ever to move your accounts and investments to lower-fee alternatives.
• Monitor statements: Regularly check your statements for unexpected charges and query anything that looks out of place.

In 2025, digital banks and fintechs are leading the charge on low- and no-fee products, forcing traditional providers to rethink their pricing. For example, Up Bank and ING have eliminated many everyday banking fees, while popular super funds like AustralianSuper and Hostplus now advertise their total annual fees upfront.

Real-World Example: How Fees Affect Your Wealth

Consider two Australians, Sam and Priya, each with $50,000 in superannuation. Sam’s fund charges a total annual fee of 0.7%, while Priya’s is 1.3%. Over 20 years, assuming identical investment returns, Sam could end up with over $12,000 more in retirement savings due to lower fees alone. The compounding effect of even small percentage differences is substantial.

Similarly, investors using low-cost online brokers (like SelfWealth or Pearler) can pay as little as $5 per trade, compared to $20 or more with legacy platforms. Over a decade, these savings can amount to thousands of dollars.

Conclusion

Fees aren’t always avoidable, but understanding and managing them can mean the difference between reaching your financial goals and falling short. Take the time to compare, ask questions, and switch if you’re not getting value—because in 2025, every dollar counts.