The Council of Small Business of Australia today congratulated Westpac bank for its announcement which sees exception fees across credit cards, personal accounts and business accounts cut from 1 October.

"We firmly believe in offering credit where credit's due - pardon the pun," said CEO Jaye Radisich today.

"We congratulate Westpac on this fee-cutting initiative and we're especially pleased that the fee reduction applies to small business customers, as well as personal banking customers.

"It is often the case that small business banking customers get left out of rate cuts and fee reductions when some banks restructure their fees. We're glad to see that small businesses get the benefit of this new policy at Westpac.

Ms Radisich said that while overdrawn fees, outward dishonor fees and credit card missed payment and over the limit fees will all be reduced to $9 from 1 October 2009 at Westpac, that there was an even cheaper way for small business to do its banking business.

"By keeping a close eye on their accounts, it is possible for small businesses to avoid all these exception fees altogether, by simply paying off credit cards on time, and ensuring that EFTPOS and cheques are only used if there are sufficient funds in the account to make the payment.

"It is essential that small businesses do what they can to monitor their income and expenses, and their cash flow at all times. This helps to avoid all manner of fees, as well as being good business practice."

Ms Radisich agreed that the newly announced fee-cut from Westpac was the most significant downward movement on bank fees that the Australian banking industry has seen for many years.

"We hope that other banks follow Westpac's lead and institute fairer, more transparent fee structures for their small business customers.

"We will continue to work with all banks as well as the Australian Banking Association to raise issues of concern to small business in relation to their daily banking needs."

www.cosboa.org.au

ENDS