Business Overdraft Interest Rates and Fees in Australia: The Real Cost
Rates and Fees
Australian business owners · What a facility actually costs · Published and dated figures
A business overdraft has three prices, not one: the rate on what you draw, the holding fee on the limit whether you draw it or not, and the one-off fees. This guide sets out the interest rates and fees Australian banks and non-bank lenders publish, read in October 2026, shows the annual cost at $25,000, $50,000, $100,000 and $250,000 under three usage shapes, and explains how the rate is set and what can change after approval. General information for business borrowers; it does not cover personal overdrafts or consumer lending.
Quick Answer
A business overdraft has three prices: interest on what you draw, a holding fee on the approved limit whether you use it or not, and one-off fees. Compare facilities as one annual dollar figure at your own limit and average drawn balance, not by the headline interest rate.
Also called: business overdraft interest rates, commercial overdraft rates, overdraft line fee, business overdraft costs.
What are business overdraft interest rates in Australia right now?
Published business overdraft interest rates in Australia run from a starting rate of 9.00% a year on a property-secured bank overdraft to 24.95% a year at the top of a non-bank band, on lender pages read in October 2026. Unsecured bank overdrafts are advertised at about 14.0% to 16.5% a year as single figures, with one published credit ladder running from 11.70% to 21.70%, and these are published figures for business borrowers, not an offer or the rate any one business will get.
| Facility | Rate, % a year | Basis | What moves a business to either end |
|---|---|---|---|
| Bank overdraft secured by property | 9.00% as an advertised starting rate; 9.45% to 10.35% where a flat secured rate is published | Published on bank product pages, read October 2026 | Security type (residential below commercial) and the customer margin set at assessment |
| Bank overdraft, unsecured | 13.96% to 16.50% as single advertised rates; 11.70% to 21.70% on one published credit ladder | Published on bank product pages, read October 2026 | Credit grade, trading history, turnover and account conduct |
| Non-bank overdraft, published | 14.95% to 24.95% | Published on a non-bank lender's rates page, read October 2026 | Annual turnover and property ownership: the top of the band is a non-property-owner tier in the smallest turnover band |
| Non-bank overdraft and line of credit, observed | 14.95% to 23.95% term-style variable; drawn-balance daily pricing roughly 15% to 45% | Observed in Switchboard Finance lender-panel records, as at September 2026; 5 records with pricing, a small sample under review | Trading history, turnover floor and business credit score |
| RBA small business overdraft indicator | 10.76% | Reserve Bank of Australia, Statistical Table F5, observation 30 September 2026, published 8 October 2026 | Context only: an indicator series, not a rate you can apply for |
Sources: lender product and rate pages read 9 October 2026, each listed with its own date in the sources table; Reserve Bank of Australia, Statistical Table F5; Switchboard Finance non-bank lender policy matrix for the observed row. Published figures, not offers. General information for business borrowers only.
Indicative and general only. The observed row is from Switchboard Finance's lender-panel records as at September 2026. Observed, not offered: not a quote, not an offer and not the rate, cost or approval any business will get. Terms depend on your trading history, turnover, credit file and the lender. General information for business borrowers; it does not cover consumer lending.
The RBA cash rate target rose to 4.60% on 30 September 2026. Rates on this page were read on 9 October 2026; lender rates change without notice.
The published range is the answer to the question people actually type, but it is not the answer to what the facility costs you. The normal cost of a business overdraft has three main components, and only one of them is the headline rate. Conditional charges can also apply if you exceed the limit or breach the facility terms.
The rate on drawn funds. Charged only on what the account is actually overdrawn by, usually calculated daily. This is the number in the advertisement and the number that dominates the bill on a heavily used facility.
The holding fee on the limit. Charged for keeping the facility available, whether you use it or not. It goes by several names, most often a line fee or a facility fee, and it takes five different published shapes across the Australian market. On a facility you rarely draw, this can be the dominant recurring cost even when debit interest is close to zero.
The one-off fees. An establishment or application fee at set-up, and in some cases a securities administration or documentation fee. These are often harder to compare because several lenders do not publish the amount and instead confirm it in the offer.
The reason this matters is arithmetic rather than opinion. Run a 15.05 percent rate against a 1.70 percent line fee and the two charges are equal when the average drawn balance is 11.3 percent of the limit, because 0.017 divided by 0.1505 is 0.113. Below that usage level, the holding fee is larger than the interest charge. That is why a standby facility can be cheaper at a higher headline rate if its holding fee is lower or zero.
This page expands the cost section of our guide to how a business overdraft works several levels deeper. If you want the mechanics of the facility itself, how it attaches to your trading account and when a lender can review it, start there and come back here for the pricing.
What is the interest rate on an unsecured business overdraft?
Unsecured business overdraft rates published by Australian banks run from 13.96% to 16.50% a year as single advertised figures, read in October 2026, and one bank publishes a credit ladder from 11.70% to 21.70%. Most are variable, a fee on the approved limit of 1.00% to 1.75% a year usually sits on top, and a director's guarantee is commonly required.
Unsecured means no property is mortgaged to the lender for the facility. It does not mean nobody is liable: a director's guarantee is commonly required, which makes the director personally liable if the business cannot repay. What a lender can still take on an unsecured facility is covered in our unsecured business overdraft guide.
| Lender | Published unsecured rate | Limit range | Fee on the limit | Read date |
|---|---|---|---|---|
| CommBank | 15.05% a year as a starting rate, variable | Up to $250,000 | Line fee 1.70% a year | 9 October 2026 |
| NAB QuickBiz | 16.50% a year, variable | $5,000 to $50,000 | Service fee 1.75% a year of the limit | 9 October 2026 |
| Westpac | 13.96% a year, variable | $5,000 to $250,000 | Monthly fee 1.50% a year of the total limit | 9 October 2026 |
| ANZ | 16.45% a year, variable | $2,000 to $200,000 | Credit Facility Fee from $250 a year; 1.7% of the limit from $50,000 | 9 October 2026 |
| AMP Bank | 15.45% a year, variable | $2,000 to $50,000 | Service fee 1.00% a year of the limit, waived for the first 12 months | 9 October 2026 |
| Great Southern Bank | 11.70% to 21.70% a year across five published credit tiers | $10,000 to $50,000 | Service fee $20 a month | 9 October 2026 |
Sources: each lender's own product or rates page, read 9 October 2026; links and each page's own date are in the sources table. Published figures, not offers; your rate is confirmed in the lender's offer.
Where one lender publishes both a secured and an unsecured figure on the same basis, its lowest published unsecured figure was 2.25 to 6.05 percentage points above its lowest secured one on the pages read in October 2026. The bank products in the table that state a maximum unsecured limit stop between $50,000 and $250,000.
What business overdraft rate does each Australian bank and non-bank lender publish?
Of the thirteen Australian bank brands read for this page in October 2026, six print a customer overdraft rate on their own pages, three print only a base or reference rate to which a margin may be added, three print no rate, and one no longer offers business banking. The table sets each bank and non-bank lender's published rate beside its fee on the limit; it is a record of what lenders publish, not a ranking and not a recommendation.
Which published figure matters depends on which charge dominates your file. A business that draws its limit to the floor every month is mostly paying the rate. A business holding a standby facility it touches twice a year is mostly paying the holding fee, and for that business a facility with no holding fee can cost less across the year than one priced lower on the rate. The annual cost and unused facility sections below show which describes you.
Read the "What is published" column before the rate. A customer rate is a figure a business can be charged. A base or reference rate is a starting point to which the lender adds a margin for your business, so it cannot be set beside a customer rate. "On application" means the lender prints no figure, and the cell says so instead of borrowing one from a comparison site.
| Lender or segment | What is published | Limit range | Advertised rate | Holding fee structure | Establishment fee | Source and read date |
|---|---|---|---|---|---|---|
| CommBank Business Overdraft | Customer rate | Secured from $2,000; up to $250,000 with no security | Starting rates: from 9.00% a year secured by property; from 15.05% a year with no security. Variable | Line fee 1.70% a year, on the limit or the outstanding balance, whichever is higher | One-off fee, confirmed in the letter of offer | CommBank business overdraft page, current as at 9 October 2026; read 9 October 2026 |
| NAB QuickBiz Overdraft | Customer rate | $5,000 to $50,000, unsecured | 16.50% a year, variable | Service fee 1.75% a year of the approved limit | None stated | NAB QuickBiz overdraft page; read 9 October 2026 |
| NAB Business Overdraft | On application | From $20,000 | On application | On application | On application | NAB business overdraft page; read 9 October 2026 |
| Westpac Business Overdraft (secured) | Base or reference rate only | Up to $250,000 | Base rate 8.36% a year (Small Business Overdraft Rate); a margin may apply | Line fee 1.20% a year of the total limit | Not stated ("Establishment and other fees may apply") | Westpac business overdraft page and business rates page, rates effective 9 October 2026; read 9 October 2026 |
| Westpac Unsecured Business Overdraft | Customer rate | $5,000 to $250,000 | 13.96% a year, variable | Fee 1.50% a year of the total limit, charged monthly | $250 | Westpac unsecured business overdraft page; read 9 October 2026 |
| ANZ unsecured business overdraft (GoBiz) | Customer rate | $2,000 to $200,000 | 16.45% a year, variable | Credit Facility Fee: $250, $400 or $600 a year on limits under $50,000; 1.7% a year of the limit from $50,000 | $0 upfront fee | ANZ unsecured business overdraft page, current as at 9 October 2026; fees schedule dated September 2026; read 9 October 2026 |
| AMP Bank Business Overdraft | Customer rate | $2,000 to $50,000, unsecured | 15.45% a year, variable | Service fee 1.00% a year of the approved limit, waived for the first 12 months | $200 or 1.00% of the approved limit, whichever is greater | AMP Bank business overdraft page, effective date 19 August 2025; read 9 October 2026 |
| Great Southern Bank Business+ Unsecured Overdraft | Customer rate | $10,000 to $50,000 | 11.70% to 21.70% a year across five published credit tiers, variable | Service fee $20 a month | $495 | Great Southern Bank Business+ overdraft page, rates current as at 15 May 2026; rate schedule effective 30 September 2026; read 9 October 2026 |
| Great Southern Bank Secured Business Overdraft | Customer rate | Not stated | 9.45% a year with residential security; 10.35% a year with commercial security | No line fee and no service fee | $750, plus a $235 securities administration fee | Great Southern Bank secured business overdraft page, rates current as at 27 May 2026; read 9 October 2026 |
| BOQ Business Overdraft | Base or reference rate only | From $10,000 | 12.26% a year with residential security; 13.01% a year with other security; variable, and a margin may also apply | Agreed credit advance fee 0.40% of the approved limit (minimum $90), charged quarterly; the fees guide does not say whether the percentage is a quarterly or an annual rate. No monthly service fee | Application fee 0.75% of the approved limit, minimum $750 | BOQ business overdraft page, current as at 8 May 2026; fees guide dated May 2026; read 9 October 2026 |
| Bendigo Bank Business Overdraft | Base or reference rate only | From $20,000 | Reference rates: Overdraft Residential Rate 10.75% a year; Overdraft Reference Rate 11.50% a year; Business Overdraft Indicator Rate 12.24% a year; a margin may apply | Not published ("a lending margin and fees may apply") | Not published | Bendigo Bank business loans page; schedule of interest rates for business accounts, effective 7 October 2026; read 9 October 2026 |
| Beyond Bank Business Overdraft | Base or reference rate only | From $10,000 | Variable reference rates: 8.84% a year secured; 12.99% a year unsecured; a margin may apply | No monthly fee | Approval fee $295 | Beyond Bank business overdraft page, rates current as at 7 October 2026; fees guide effective 1 September 2026; read 9 October 2026 |
| St George, Bank of Melbourne and BankSA (three brands) | On application | Not published | Not published | Not published | Not published ("Establishment and other fees may apply") | Each brand's commercial overdraft page; read 9 October 2026 |
| Bankwest | No longer offered | None | None | None | None | Bankwest media statement, 17 February 2022; read 9 October 2026 |
| Shift Business Overdraft (non-bank) | Customer rate | $10,000 to $2 million | 14.95% to 24.95% a year, variable, by annual turnover and property ownership | Annual fee $495 on limits up to $100,000; $795 above | None | Shift business overdraft page and rates and fees page, rates last updated 24 September 2026; read 9 October 2026 |
| Dynamoney Business Overdraft (non-bank) | Customer rate | $20,000 to $500,000; $100,000 maximum for a non-property owner | 20.20% a year, shown as indicative in its calculator | Monthly line fee of $62.50 on $50,000 in its calculator (1.50% a year) | Not stated | Dynamoney business overdraft page, no page date; read 9 October 2026 |
| Prospa Business Line of Credit (non-bank) | On application | Up to $500,000 | Not published | Weekly service fee 0.046% (2.392% a year if charged on the limit, as its $40,000 example implies) | None | Prospa line of credit page, no page date; read 9 October 2026 |
| Lumi Business Line of Credit (non-bank) | Customer rate | Up to $1 million | Starting rate: from 15.5% APR | No ongoing fees | Not stated | Lumi business line of credit page, no page date; read 9 October 2026 |
| Moneytech Line of Credit (non-bank) | On application | Not published | Not published | Not published | Not published | Moneytech line of credit page, no page date; read 9 October 2026 |
Sources: each lender's own product page, rates page or fee schedule, read 9 October 2026; every page and its own date is linked in the sources table. Published figures, not offers, and not a recommendation of any lender.
One row is in the table because the lender has gone. Bankwest announced in February 2022 that its business customers would move to Commonwealth Bank products and services, and its own site carried no business overdraft or business rates page when read in October 2026, which changes who is left to quote you.
If you are weighing an overdraft against a standalone revolving facility rather than comparing overdrafts to each other, that is a product question rather than a pricing one, and our guide to how a business line of credit works covers it. Entity type and lender eligibility can also change the limit available, so treat "how much can I get?" as a separate eligibility question rather than assuming the limit in a rate table is available to every business.
How is a business overdraft interest rate set?
A business overdraft rate is usually a base or reference rate set by the lender plus a margin set for your business; the base rate is published and the margin is confirmed in your offer. Indicator, prime and index rates are starting points, not the rate you pay: one major bank's published overdraft prime rate sits more than seven points under the rate it advertises on the same product.
| Term | What it is | Is it the rate you pay? |
|---|---|---|
| Base, reference or index rate | The lender's published starting rate for a class of facility | No. A margin may be added |
| Customer margin | Set for your business at assessment and shown in the letter of offer | Part of it |
| Indicator or prime rate | A published benchmark some banks use | No |
| RBA Table F5 indicator | The Reserve Bank's monthly indicator series for small business variable overdrafts | No. Context only |
| Cash rate target | The Reserve Bank's policy rate | No |
Sources: Reserve Bank of Australia, Statistical Table F5 and cash rate target; lender rate pages listed in the sources table, read 9 October 2026. General information only.
NAB shows why an indicator or prime rate must not be copied into a customer-rate comparison. It publishes a QuickBiz overdraft prime rate of 9.37% a year while advertising the QuickBiz overdraft at 16.50% a year, read in October 2026. The 7.13 percentage-point difference shows that the indicator is not the customer price. ANZ's fees schedule, read in October 2026, describes the same structure in words: debit interest on an overdraft is charged at the ANZ Index Rate applicable to your facility, plus a margin set out in your letter of offer.
The Reserve Bank describes the same structure from the funding side: "Variable-rate business loans are typically priced with reference to short-term interest rates, such as the cash rate or BBSW" (RBA Bulletin, Developments in Banks' Funding Costs and Lending Rates, 28 May 2026).
What does the RBA's small business overdraft indicator measure?
The Reserve Bank publishes a monthly indicator rate for small business variable overdrafts. It was 10.76% a year at 30 September 2026, unchanged since May, and the indicator for small business variable term loans was 9.00% a year (RBA Statistical Table F5, published 8 October 2026, read 9 October 2026). It is an indicator series, not a rate you can apply for, so keep it apart from the published customer rates in the lender table.
How is business overdraft interest calculated?
Overdraft interest is usually calculated each day on the amount the account is overdrawn and charged to the account at the intervals set in your agreement. The sum is the annual rate multiplied by the balance, multiplied by the number of days and divided by 365.
How fast does an RBA cash rate change reach a business overdraft, and what notice do you get?
A cash rate change does not reach a business overdraft on the day it is announced: after the rise to 4.60% on 30 September 2026, major banks including Westpac and CommBank set 9 October 2026 as the effective date for cash-rate-linked business overdrafts. Under the Banking Code of Practice a subscribing bank tells you about an interest rate change as soon as reasonably possible and no later than the date of the change, unless it is not able to because the rate is calculated according to a money market or other external reference rate, or a rate otherwise designated as variable or floating, and the notice can be a media advertisement.
- The Reserve Bank announces the decision. The cash rate target moved from 4.35% to 4.60%, effective 30 September 2026.
- Each lender announces what it will pass on and from when. Westpac and CommBank each announced a 0.25 percentage point rise in the reference rates behind their cash-rate-linked business overdrafts, effective 9 October 2026 (their rate pages, read 9 October 2026).
- The reference rate moves. Your rate is the lender's base or reference rate plus your margin, so when the reference rate changes, your rate changes with it on the terms in your agreement.
- The bank tells you. Under the Code the notice can be an advertisement in national or local media, or a written notice, which includes an app notification, an email, or a notice published on the bank's website or another platform that the bank directs you to.
- Published rate tables catch up on the lender's own schedule, so check the "current as at" date on any page you read.
The Reserve Bank's small business overdraft indicator had not moved by the end of the month: it was 10.76% a year at 31 August 2026 and 10.76% a year at 30 September 2026, the day the higher cash rate took effect (Table F5, published 8 October 2026).
The Banking Code binds the banks that subscribe to it, for individual customers and for small businesses as the Code defines them: annual turnover under $10 million, fewer than 100 full-time equivalent employees and less than $5 million in total debt to all credit providers. It binds no non-bank lender. A non-bank overdraft moves on the terms of its own agreement. For a change other than an interest rate or repayment change that a subscribing bank believes is unfavourable to you, the Code gives at least 30 days' notice, with shorter or no notice allowed where it is reasonable to manage a material and immediate risk or where a government fee or charge changes (Banking Code of Practice, paragraph 1 and paragraphs 34 to 38, in force since 28 February 2025).
If a rate change arrives with a review of the facility, use our plan for the 60 days before an overdraft facility review.
What fees apply to a business overdraft beyond the interest rate?
Beyond interest, business overdrafts have three main fee families: a holding or facility fee for keeping the limit available, a one-off establishment or variation fee, and an excess-drawing or default charge if the limit is exceeded. The holding fee itself appears in five published structures in this lender set, which is why two facilities with similar rates can have very different annual costs. The Reserve Bank's May 2026 Bulletin analysis also shows the importance of business-lending fees: the majority of banks' fee income from business and government customers comes from account servicing fees, a category that includes application, settlement and establishment fees, and fee revenue on business loans has been broadly stable at 0.5 percent of business credit outstanding.
What is a business overdraft line fee?
The most common holding fee at the banks, expressed as a percentage a year of your approved limit and charged whether or not you draw a cent. CommBank publishes 1.70 percent a year, NAB 1.75 percent on its QuickBiz facility, Westpac 1.20 percent on its secured overdraft and 1.50 percent on its unsecured one, AMP 1.00 percent, and the non-bank Dynamoney shows a monthly line fee of $62.50 on $50,000 in its calculator (read October 2026), which is 1.50 percent a year. Westpac publishes its own worked example, which is the clearest illustration of how the charge accrues: on a 1.20 percent line fee and a $10,000 limit in a 31 day month, the fee is 1.20 percent of $10,000 divided by 365 and multiplied by 31 days, which Westpac publishes as $10.20 for the month; the unrounded calculation is $10.19. The base matters as much as the percentage. Westpac charges on the total limit regardless of use, while CommBank charges on the limit or the outstanding balance, whichever is higher in the period, which produces the same answer on an undrawn facility and a different one if you ever exceed your limit.
Can an overdraft facility fee be charged monthly or quarterly?
A fixed amount rather than a percentage, which quietly changes the economics at both ends of the limit range. Great Southern Bank charges a $20 monthly service fee on its unsecured facility (read October 2026), which is $240 a year and works out at 0.48 percent of a $50,000 limit. ANZ charges $250, $400 or $600 a year on limits below $50,000 and then 1.7 percent of the limit from $50,000 to $499,999. That ANZ structure is worth a moment: at a $25,000 limit the $600 tier is 2.40 percent of the limit, which at that limit is dearer than any percentage holding fee in the lender set read for this page.
What is a flat annual business overdraft fee?
A flat annual fee is independent of how much you draw, but it is not independent of the limit. Shift publishes $495 a year on limits up to $100,000 and $795 a year on limits over $100,000, on limits from $10,000 to $2 million (its overdraft page and its rates and fees page, the second last updated 24 September 2026, read 9 October 2026).
Can a business overdraft charge a weekly service fee?
A non-bank structure that reads as small and annualises as large. Prospa charges a weekly service fee of 0.046 percent, charged from settlement and payable whether or not you have drawn down. Multiply by 52 and that is 2.392 percent across a year, which is the highest annualised holding percentage in this published lender set. Prospa's own example is a $40,000 facility, where 0.046 percent is $18.40 a week, or as the page puts it, less than $3 a day, which is the same $956.80 a year seen from a friendlier angle. Prospa does not state in words what the fee is charged on, but its example only resolves if the base is the approved limit.
Which published facilities have no holding fee?
Three published facilities charge nothing at all for keeping the facility open. Beyond Bank's overdraft carries no monthly fee even when it is not drawn down, and Lumi charges no ongoing fee while its facility is open. Great Southern Bank's secured overdraft is the third: line fee $0 and service fee $0, with the cost moved to a $750 establishment fee instead. This is the structure that goes missing from comparison tables, because a blank cell reads as unpublished data rather than as a published zero, and on a standby facility a published zero is worth more than any rate difference in this market.
Is the fee charged on the approved limit?
- You pay it at zero drawings. Line fees, facility fees, monthly and quarterly service fees and weekly percentage fees all accrue on the approved limit whether or not the account is ever overdrawn.
- Asking for a bigger limit costs money. Because the base is the limit, a limit you requested for comfort is billed at the same rate as a limit you use.
- Published examples: CommBank 1.70 percent, NAB 1.75 percent, Westpac 1.20 and 1.50 percent, AMP 1.00 percent, Dynamoney 1.50 percent (from its calculator), Prospa 0.046 percent weekly on the base its own example implies, Great Southern Bank $20 a month, ANZ $250 to $600 a year then 1.7 percent.
Which overdraft costs are charged on what you draw?
- Interest only, wherever the basis is published. Every lender in the table that publishes its charging basis charges interest on the debit balance rather than the limit, which is the defining feature of the product.
- One exception to watch. CommBank's line fee base is the limit or the outstanding balance, whichever is higher in the period, so a balance above the limit lifts the fee as well as the interest.
- What this means: two facilities with identical rates can differ by thousands a year on the holding fee alone, and the difference is invisible until you write both structures out at your own average drawn balance.
What establishment fees can apply to a business overdraft?
Published establishment fees range from nothing to 1.00 percent of the limit, with dollar minimums between $200 and $750. Shift and Prospa publish none (read October 2026). AMP charges $200 or 1 percent of the limit, whichever is greater. Westpac prints a $250 establishment fee on its unsecured overdraft page (read October 2026). Beyond Bank charges a $295 approval fee (fees guide effective 1 September 2026). Great Southern Bank charges $495 unsecured and $750 secured, plus $235 for securities administration. BOQ charges 0.75 percent of the approved limit with a $750 minimum, which on a $250,000 limit is $1,875. Bendigo, NAB, CommBank and the three Westpac subsidiary brands publish no amount at all (read October 2026).
What happens if you exceed your business overdraft limit?
Every published charge above assumes you stay inside the limit. Go past it and a separate and much higher rate applies, and this is the one number that never appears in a comparison table. Great Southern Bank publishes 25.45 percent a year on an unarranged credit limit on its business transaction account. Bendigo Bank publishes an overdrawn account rate of 18.73 percent and, separately, an overlimit rate of 6.00 percent that applies in addition to your overdraft rate when an approved limit is exceeded. St George publishes a casual overdraft rate of 15.01 percent for unarranged lending. Beyond Bank charges $11 each time it honours a transaction that overdraws an account by $50 or more. BOQ charges $300 to establish a temporary limit increase.
A tax note before you total any of this up. Lending money is an input taxed financial supply, so loan interest and lending fees carry no GST in their price. There is no GST credit to claim on them, not because the credit is denied but because there is no GST there in the first place. That is general information rather than tax advice, and the treatment of your own facility is a question for a registered tax agent.
If your existing facility is being repriced at review, the fee lines are usually where the movement happens rather than the rate, and our sixty day plan for an overdraft facility review covers what to have ready.
How much does a business overdraft cost per year at $25k, $50k, $100k and $250k?
At a $50,000 limit, the two published pricing structures modelled below produce annual costs from $495 when the flat-fee example is undrawn to $8,375 when the bank-style example is fully drawn. The table runs the same method at $25,000, $100,000 and $250,000 under undrawn, half-drawn and fully drawn usage. The comparison method is:
Effective annual cost = the rate multiplied by your average drawn balance, plus the holding fee on your limit, plus any fixed fees spread across the year.
The table below runs that formula at four limits and three usage shapes, against two published fee structures. The inputs are named once and used everywhere. The bank-style column uses CommBank's published unsecured starting rate of 15.05 percent a year and CommBank's published line fee of 1.70 percent a year of the limit, a percentage ANZ also charges as its Credit Facility Fee on limits from $50,000. The non-bank column uses the low end of Shift's published band, 14.95 percent, charged on the drawn balance only, plus Shift's published annual fee, which is $495 on limits up to $100,000 and $795 on limits over $100,000. Establishment fees are excluded from both columns, since they are one-off and several lenders publish none.
Take the $100,000 line as the worked example. Fully drawn, the bank-style facility costs 15.05 percent of $100,000, which is $15,050 of interest, plus 1.70 percent of the $100,000 limit, which is $1,700 of line fee, for $16,750 a year. The non-bank facility at the same drawings costs 14.95 percent of $100,000, which is $14,950, plus the $495 annual fee, for $15,445. Undrawn, the same two facilities cost $1,700 and $495 respectively, and the entire difference is the fee structure.
| Limit | Usage shape | Bank-style example: 15.05% a year starting rate on drawings + 1.70% a year line fee on the limit | Non-bank example: 14.95% a year starting rate on drawings + $495 annual fee to $100,000, $795 above | Lower-cost example |
|---|---|---|---|---|
| $25,000 undrawn | Standby, nothing drawn | $425 | $495 | Bank-style, by $70 |
| $25,000 half drawn | $12,500 average balance | $2,306 | $2,364 | Bank-style, by $58 |
| $25,000 fully drawn | $25,000 average balance | $4,188 | $4,233 | Bank-style, by $45 |
| $50,000 undrawn | Standby, nothing drawn | $850 | $495 | Non-bank, by $355 |
| $50,000 half drawn | $25,000 average balance | $4,613 | $4,233 | Non-bank, by $380 |
| $50,000 fully drawn | $50,000 average balance | $8,375 | $7,970 | Non-bank, by $405 |
| $100,000 undrawn | Standby, nothing drawn | $1,700 | $495 | Non-bank, by $1,205 |
| $100,000 half drawn | $50,000 average balance | $9,225 | $7,970 | Non-bank, by $1,255 |
| $100,000 fully drawn | $100,000 average balance | $16,750 | $15,445 | Non-bank, by $1,305 |
| $250,000 undrawn | Standby, nothing drawn | $4,250 | $795 | Non-bank, by $3,455 |
| $250,000 half drawn | $125,000 average balance | $23,063 | $19,483 | Non-bank, by $3,580 |
| $250,000 fully drawn | $250,000 average balance | $41,875 | $38,170 | Non-bank, by $3,705 |
Sources: arithmetic by Switchboard Finance on two published pricing structures read 9 October 2026 (the lender pages are in the sources table). Both rates are published starting rates, chosen close together so the table isolates the fee structure; the non-bank lender publishes 14.95% for annual turnover over $10 million and up to 24.95% below that, and a higher rate raises the drawn rows in either column. Establishment fees excluded. Illustrative, not a quote and not the price any business will be offered.
The crossover falls out of the fee structures rather than the rates, and it can be stated exactly. A percentage line fee beats a flat annual fee wherever the percentage produces the smaller dollar figure, so the break sits where the flat fee divided by the percentage equals the limit. At a 1.70 percent line fee, $495 divided by 0.017 is $29,118. Below that limit the percentage line fee is the smaller holding charge. Above it the flat annual fee is the smaller holding charge at every limit, because the percentage keeps climbing with the limit and the flat fee steps up only once, to $795 on limits over $100,000.
How far does this arithmetic travel? Not as far as a quote. It compares fee structures at a fixed rate, so it does not tell you what any lender will price your file at, and the rates used are published starting points rather than offers. And it ignores establishment fees, which on the published BOQ scale (0.75 percent of the approved limit, minimum $750, read October 2026) would add $1,875 at $250,000, in year one alone. Run your own numbers on the offers actually in front of you, using the formula rather than the headline. The same method works on any revolving facility, and our comparison of a business overdraft and a line of credit applies it to both.
Do you pay fees on an unused business overdraft?
If an overdraft is completely undrawn, debit interest is normally zero, but a holding or facility fee can still apply to the approved limit. At a 1.70 percent annual line fee that is $425 on a $25,000 limit and $1,700 on a $100,000 limit; three published facilities in this lender set carry no holding fee. In practical terms, an unused overdraft can still cost money because the fee is charged for keeping the approved limit available, not for the dollars actually drawn.
What that costs varies more than anything else on this page. On a $100,000 limit held at zero drawings for a year, the published Australian market ranges from nothing to $2,392:
- Nothing at Beyond Bank, which publishes no monthly fee even when the facility is not drawn down, and at Lumi, which charges no ongoing fee while the facility is open. Great Southern Bank's secured overdraft is also zero on the holding fee, having moved the cost to a $750 establishment fee.
- $495 on Shift's flat annual fee, which is its published fee on limits up to $100,000 (read October 2026).
- $1,200 at Westpac's secured facility, $1,500 at Westpac's unsecured facility, and $1,700 at CommBank and ANZ, being 1.20, 1.50 and 1.70 percent of the $100,000 limit. NAB's QuickBiz facility charges 1.75 percent and AMP 1.00 percent, but neither lends to $100,000: at their published $50,000 ceilings those percentages come to $875 and $500 respectively.
- $2,392 at Prospa, being 0.046 percent a week multiplied by 52 weeks, if the base is the approved limit as Prospa's own worked example implies. Prospa presents the same fee as less than $3 a day.
That is a spread of $2,392 a year on an identical facility that is never used, and it is decided entirely by a fee structure most borrowers never compare. At the other end of the usage spectrum the picture inverts. On a $250,000 facility drawn to the floor, interest is about 90 percent of the annual bill, because $37,625 of interest sits against $4,250 of line fee. One percentage point on the rate is worth $2,500 a year at that limit, while the published spread between the lowest and highest percentage line fees on bank facilities that reach that limit, 1.20 and 1.70 percent, comes to $1,250. On a heavily drawn facility, chase the rate. On a standby facility, chase the fee.
The self-test takes one number. Estimate your average drawn balance over a year as a share of your limit, not your peak drawing and not your worst month. Then apply the 11.3 percent pivot from section one, which is where a 15.05 percent rate and a 1.70 percent line fee cost the same. Below it you are mostly buying availability, and the fee is your real price. Above it you are mostly buying money, and the rate is your real price. Then read the annual cost table above at your own limit.
If your bank has recently cut a facility you were relying on, the cost question changes shape, and our guide to what happens when a bank recalls or reduces an overdraft facility deals with that situation directly.
Is a bank overdraft cheaper than a non-bank line of credit, a credit card or a short-term loan?
Not necessarily: which costs less depends on how much of the limit you use, because each facility splits its price differently between the rate on what you draw and the cost of holding the limit. Convert every price to dollars a year at your own average balance before comparing, because daily, weekly and factor-rate prices are not annual percentages.
| Facility | How the price is quoted | How to turn it into dollars a year | Holding cost when unused | Full guide |
|---|---|---|---|---|
| Bank overdraft | % a year on the drawn balance | Rate multiplied by the average drawn balance | Line or facility fee on the limit | This page |
| Non-bank overdraft or line of credit | % a year, or a daily or weekly rate on the drawn balance | Daily rate multiplied by 365, or weekly rate multiplied by 52, multiplied by the average drawn balance | A flat annual fee, a weekly fee on the limit, or none | How a business line of credit works |
| Business credit card | % a year on purchases and on cash advances, often at different rates | Rate multiplied by the balance you carry past the due date | Annual card fee | Not covered on this site |
| Short-term working capital loan | A factor rate or flat fee on the amount advanced | Total repayable minus the amount advanced, then annualised over the term | None. The cost is fixed at drawdown | What a working capital loan costs |
Sources: Switchboard Finance broking practice for how each facility type is priced, October 2026. Structure only; no rate is quoted. General information for business borrowers.
A daily rate multiplied by 365, or a weekly rate multiplied by 52, gives the simple annual equivalent, so 0.05% a day is 18.25% a year. A factor rate is not an annual rate at all: a factor of 1.2 on $50,000 means $60,000 repayable whatever the term, so the shorter the term, the higher the annual equivalent. Our factor rate calculator does the conversion.
A higher rate with no holding fee can cost less than a lower rate with a fee on the limit when little of the limit is drawn. The annual cost table above works two published structures through four limits, and our guide to a business overdraft against a line of credit covers the choice between them.
Secured term products are priced differently again, and their current ranges sit with their own guides: chattel mortgage rates, second mortgage rates and caveat loan rates.
What determines the business overdraft rate you actually get?
The rate you actually get is commonly shaped by security, property ownership, trading history, credit grade, turnover and account conduct, while some lenders price from a published base or reference rate plus a private customer margin. The published bands are wide: Great Southern Bank's unsecured ladder spans 11.70 to 21.70 percent, and Shift publishes 14.95 to 24.95 percent. Where the final customer margin is not public, the exact rate is confirmed in the lender's offer rather than on the comparison page.
How does your credit grade affect the overdraft rate?
Great Southern Bank is the only bank in the set read for this page in October 2026 that publishes its whole ladder rather than its top rung. Its rate schedule sets the unsecured Business Plus Overdraft at 11.70 percent for an exceptional grade, 12.70 for great, 15.70 for good, 17.70 for average and 21.70 for below average. That is ten percentage points of difference on the same product with the same lender, decided by grading alone. On a $50,000 facility drawn to the floor, the distance between the top and bottom rungs is $5,000 a year.
Does property security reduce a business overdraft rate?
Three lenders publish both a secured and an unsecured figure, and the gap runs from 2.25 to 6.05 percentage points. CommBank publishes from 9.00 percent secured against from 15.05 percent unsecured, a gap of 6.05 points. Westpac prints a variable rate on its unsecured product page and a base rate on its secured one (both read October 2026), so its two figures are not like for like and no gap is drawn from them. Beyond Bank publishes reference rates of 8.84 and 12.99 percent, a gap of 4.15 points. Great Southern Bank is the narrowest of the three: its secured facility at 9.45 percent sits 2.25 points below the best rung of its unsecured ladder, and it carries no line fee where the unsecured product carries a $20 monthly service fee. The rate gap is therefore only part of the secured-versus-unsecured cost decision.
Can owning property affect the rate even if it is not taken as security?
On one non-bank lender's published terms the rate differs by property ownership, and on another the maximum limit does; neither page says whether the property is taken as security. Shift publishes its overdraft rates as a ladder by annual turnover, and in its small business band ($250,000 to $1.5 million) the rate is 20.95 percent a year for a property owner and 24.95 percent a year for a non-property owner (rates page last updated 24 September 2026, read 9 October 2026). Dynamoney's overdraft page sets a maximum overdraft of $100,000 for a non-property owner against $500,000 for a property owner (read October 2026). That is four percentage points on the rate at one lender and a five-fold difference in the maximum limit at the other, published, for owning property.
Do turnover and bank statements affect the rate you are offered?
Beyond that, the inputs are the ones lenders assess rather than publish: revenue and its direction of travel, how the trading account has behaved over the last twelve months in dishonours and days spent in excess, and the sector the business trades in. Some non-bank overdraft-style products are simply not priced for property development, primary production or mining services, so for a business in one of those sectors the advertised band may not be the band that applies at all. What twelve months of statements say about conduct is a longer subject and we have covered it in how a lender reads your bank statements.
How do you decide what business overdraft limit to ask for?
Start with the cashflow gap rather than the lender’s maximum. The limit has two jobs: it needs enough headroom to cover the peak working-capital shortfall, but no more than the business can justify and service. That matters because many holding fees are charged on the approved limit even when it is unused. Use the peak cash gap to size the ceiling, the average drawn balance to estimate interest, and then test the proposed limit against the lender’s assessment and offer. For a deeper sizing example, see our working-capital line sizing guide.
What should you check in a business overdraft offer before accepting it?
Check the returned offer against the search you just did. The important fields are the approved limit, exact customer rate or rate formula, holding-fee basis, one-off fees, security and guarantees, and the clauses that govern review, repricing, excess drawings, limit changes and cancellation. Then compare the facility you were actually offered, not the advertised product, in this order:
- Confirm the approved limit against the cash gap, not the maximum available. A larger limit can increase the holding fee even if you never use the extra headroom.
- Estimate the average drawn balance. The peak tells you the limit you may need; the average tells you how much interest the facility is likely to generate.
- Check the exact interest-rate basis. If pricing is a base or reference rate plus a private customer margin, record both the reference and the margin from the offer instead of filling the blank with a comparison-site estimate.
- Check every fee against its charging base. Record whether the holding fee is a percentage of the limit, a flat periodic amount or another structure, then add establishment, variation and excess-drawing charges where they apply.
- Read the security and guarantee terms. A lower secured rate can change the risk carried by the business owner, so compare the structure as well as the percentage.
- Read what can change after approval. Note the review date, notice provisions and any clauses dealing with repricing, limit reduction, cancellation or repayment on demand. The starting price is only one stage in the life of the facility.
- Compare the facility you will use, not the product label. If the line will mostly sit undrawn, the holding fee can matter more than the rate; compare a business line of credit as well.
Before you choose a facility
Bring the comparison back to five numbers: approved limit, expected average drawn balance, quoted rate, holding-fee basis and one-off fees. If one of those numbers is not published, leave it blank until the lender's offer supplies it rather than assuming it.
If the lender is likely to price from your account conduct, read what twelve months of bank statements tell an overdraft lender before you compare offers.
How do you turn a headline overdraft rate into a real comparison?
When a business owner puts two overdraft offers in front of us, the rate is rarely what decides it. What we do first, before any lender conversation, is work out three things from the client's own accounts:
- The average drawn balance, not the peak. Twelve months of the trading account, averaged. Almost everyone quotes their worst month, and almost everyone's average is far below it.
- What the holding fee is charged on, and how often. A percentage on the limit, a flat amount per quarter and a percentage per week are three different products wearing the same word, and the difference is only visible once each is written out in dollars against the client's own limit.
- Whether the limit being asked for is the limit that is needed. Because the holding fee is charged on the limit, comfort is billable. A limit set for reassurance rather than for a cashflow pattern is the most common avoidable cost we see on these facilities.
None of that is a rate forecast and none of it predicts what any lender will approve or price. It is bookkeeping done before the shopping, and it is the difference between comparing overdrafts and comparing advertisements.
Why is there no comparison rate on a business overdraft, and what does a "from" rate mean?
A comparison rate is required in consumer credit advertising that states an interest rate, under the National Credit Code, which generally does not cover credit for business purposes, so no lender has to publish one all-in figure for a business overdraft. A "from" rate is a starting rate that some borrowers get; ASIC's advertising guide says such phrases should be approached with caution and sets no share of customers who must be able to obtain it.
Does a "from" overdraft rate mean most borrowers get it?
Given how many of these rates carry the word "from", the obvious question is what share of applicants actually get it. The verified answer is that no Australian rule sets one. ASIC reissued Regulatory Guide 234 on advertising financial products and services, including credit, on 9 June 2026, replacing the 2012 version. It contains no proportion, no threshold and no concept of a representative rate. Australia has no equivalent of the United Kingdom's representative APR rule. The test is qualitative: whether the overall impression misleads.
What the guide does say is directly on point. In the example dealing with loan interest rate benefits that are not available to all customers, ASIC states that the use of qualifying phrases such as "up to" or "from" should generally be approached with caution, because the overall impression created by an advertisement may still be that the maximum benefit is more widely or readily available than is the case. It adds that a statement referring the consumer to another webpage or document will not be sufficient to correct a misleading headline claim, and that promoters should identify where certain features are not available to all consumers. The statutory hooks for credit and financial services are sections 12DA and 12DB of the ASIC Act, the second of which prohibits a false or misleading representation with respect to the price of services.
The practical reading for a borrower is simple. A "from" rate is a floor that someone gets, not a rate you have been offered, and the law requires it not to mislead rather than requiring it to be common. Treat every "from" figure on this page as the beginning of a conversation and price your file on the formula in the annual cost section above.
Why does a business overdraft not carry a comparison rate?
A comparison rate bundles the interest rate and the fees on a loan into one figure. ASIC's advertising guide records the rule: a credit advertisement that contains an interest rate must contain a comparison rate, under section 160 of the National Credit Code (RG 234, issued 9 June 2026). The Code applies where the borrower is a natural person or strata corporation and the credit is wholly or predominantly for personal, domestic or household purposes, or to buy, renovate or improve residential property for investment. A business overdraft is business-purpose credit and generally sits outside it, so no lender on this page is required to publish a single all-in cost figure. On business lending, the only way to see the total is to build it yourself.
Can your business overdraft rate or limit change after approval?
Yes. A business overdraft can be reviewed under its facility terms and can be repayable on demand, so the rate, the fees and the limit can all change after approval on the terms in your agreement. Read the review date, the margin, the notice clause and the on-demand clause before you accept the offer.
The initial approval is not the end of the pricing decision. A review can involve updated financial information, pricing, security and the continuing size of the limit.
- Repricing at review. The margin over the base rate can be reset when the facility is reviewed, on the terms in your agreement.
- A lower limit. A lender can reduce the limit on the terms of the agreement. See what to do when a bank reduces an overdraft limit.
- Repayment on demand. For customers it covers, the Banking Code of Practice says: "If you have an overdraft or on-demand facility, we may not be required to give you any notice when we require repayment" (paragraph 85). See what happens when a bank recalls an overdraft facility.
- Notice of a rate change. Covered in the cash rate section above.
If a dispute cannot be settled with the lender, the Australian Financial Complaints Authority takes small business complaints about its members; it defines a small business as an organisation with less than 100 employees (AFCA, read 9 October 2026).
For the preparation side, use our 60-day overdraft review plan.
Frequently Asked Questions
Published business overdraft interest rates in Australia ran from a starting rate of 9.00% a year on a property-secured bank overdraft to 24.95% a year at the top of a non-bank band, on lender pages read in October 2026. Unsecured bank overdrafts were advertised at about 14.0% to 16.5% a year as single figures, and one bank's published credit ladder ran from 11.70% to 21.70%. These are published figures for business borrowers, not an offer, and a holding fee on the approved limit usually sits on top of the rate.
Unsecured business overdraft rates published by Australian banks ran from 13.96% to 16.50% a year as single advertised figures, read in October 2026, and one bank publishes a credit ladder from 11.70% to 21.70%. Most are variable, a fee on the approved limit usually applies, and a director's guarantee is commonly required. Your own rate is confirmed in the lender's offer.
On pages read in October 2026, six of thirteen Australian bank brands printed a customer overdraft rate: CommBank (starting rates of 9.00% secured and 15.05% unsecured), NAB QuickBiz (16.50%), Westpac (13.96% unsecured), ANZ (16.45% unsecured), AMP Bank (15.45%) and Great Southern Bank (9.45% to 10.35% secured, 11.70% to 21.70% unsecured). The others publish a base or reference rate to which a margin may be added, price on application, or in one case no longer offer business banking. Published rates are not offers.
A line fee is a charge for keeping an overdraft limit available, usually a percentage of the approved limit a year, and it is charged whether or not you draw. Published percentage line and service fees on unsecured bank overdrafts ran from 1.00% to 1.75% of the limit a year on pages read in October 2026. On a $100,000 limit, a 1.70% line fee is $1,700 a year before any interest.
Usually, yes. If nothing is drawn, interest is normally zero, but a line, facility or service fee can still apply to the approved limit. On a $100,000 limit left undrawn for a year, published structures read in October 2026 ran from nothing where a facility has no holding fee, to $495 on a flat annual fee, $1,700 at a 1.70% line fee and $2,392 if a 0.046% weekly service fee is charged on the limit, as one lender's worked example implies. Check what the fee is charged on before you choose a limit.
Compare business overdrafts by effective annual cost, not by the headline rate alone: interest on your expected average drawn balance, plus the holding fee on the approved limit, plus one-off fees spread across the period you expect to keep the facility. At a 15.05 percent rate and 1.70 percent line fee, interest and the holding fee are equal when average drawings are 11.3 percent of the limit. Low-use facilities should also be compared with a business line of credit.
Not on the day. After the cash rate target rose to 4.60% on 30 September 2026, major banks including Westpac and CommBank set 9 October 2026 as the date their cash-rate-linked overdraft rates would rise. Under the Banking Code of Practice, a subscribing bank tells you about an interest rate change no later than the date of the change, unless it is not able to because the rate is calculated according to a money market or other external reference rate, or a rate otherwise designated as variable or floating. Non-bank lenders are not bound by the Code.
No fixed cap is set for business overdraft fees in Australia. The unfair contract terms law covers a small business contract where the business employs fewer than 100 people or had turnover under $10,000,000 in the last income year and the upfront price payable does not exceed $5,000,000, and ASIC's examples of terms that may be unfair include a default fee that exceeds what the lender needs to protect itself from loss. Whether a fee in your agreement is enforceable is a question for your solicitor.
Generally yes, where the overdraft is used in the business. The ATO lists interest on money borrowed for producing assessable income, and bank fees and charges, among deductible business operating expenses, and only the business portion is claimable. Lending is an input-taxed financial supply, so interest and lending fees carry no GST to claim back. This is general information, not tax advice; confirm the treatment of your own facility with your accountant or registered tax agent.
Yes. A business overdraft can be reviewed under its facility terms and can be repayable on demand, so the rate, the fees and the limit can change on the terms in your agreement. The Banking Code of Practice says a subscribing bank may not be required to give notice when it requires repayment of an overdraft or on-demand facility. Read the review date, the margin, the notice clause and the on-demand clause before you accept an offer.
What sources support this guide?
This guide uses lender-owned product pages, rate schedules and fee documents as its pricing source, read in a rendered browser on 9 October 2026. Each row below shows the lender's own "current as at" date where the page gives one. Where a lender publishes nothing, the page says so instead of filling the gap. There is no single market "starting rate" for Australian business overdrafts, so this guide cites published lender rates and the Reserve Bank's indicator series, not comparison-site floors, and the indicator series is labelled as context wherever it appears.
| Source | What it supports | As at |
|---|---|---|
| CommBank: business overdraft page; changes to business rates notice | Its starting rates, line fee and limits; the 9 October 2026 effective date in the cash rate section | Page current as at 9 October 2026; notice effective 9 October 2026; read 9 October 2026 |
| NAB: QuickBiz overdraft page; business overdraft page; business interest rates, fees and charges page | The QuickBiz rate, service fee and limits; "on application" for the secured overdraft; the prime rate in the rate-setting section | Indicator rates dated 9 October 2026; read 9 October 2026 |
| Westpac: business overdraft page; unsecured business overdraft page; business loan interest rates page | Both Westpac rows, the line fee worked example, the establishment fee, the base rate and the 9 October 2026 notice | Rates effective 9 October 2026; read 9 October 2026 |
| ANZ: unsecured business overdrafts page; Finance Fees and Charges schedule | Its rate, fee tiers and limits; the index rate plus margin wording | Page current as at 9 October 2026; schedule dated September 2026; read 9 October 2026 |
| AMP Bank: business overdrafts page | Its rate, limits, service fee and establishment fee | Effective date 19 August 2025; read 9 October 2026 |
| Great Southern Bank: Business+ overdraft page; Business+ interest rate schedule; secured business overdraft page | Both Great Southern Bank rows, the five credit tiers and the unarranged credit limit rate | Pages current as at 15 May and 27 May 2026; schedule effective 30 September 2026; read 9 October 2026 |
| BOQ: business overdraft page; Business Banking Guide to Fees and Charges | Its reference rates, application fee, agreed credit advance fee and temporary limit increase fee | Page current as at 8 May 2026; guide dated May 2026; read 9 October 2026 |
| Bendigo Bank: business loans page; schedule of interest rates for business accounts | Its overdraft reference rates, overdrawn account rate and overlimit rate | Schedule effective 7 October 2026; read 9 October 2026 |
| Beyond Bank: business overdraft page; Fees and Charges Guide | Its reference rates, absence of a monthly fee, approval fee and honour fee | Rates current as at 7 October 2026; guide effective 1 September 2026; read 9 October 2026 |
| St George commercial overdraft page; Bank of Melbourne commercial overdraft page; BankSA commercial overdraft page; St George business lending interest rates page | That none of the three publishes an arranged overdraft rate; the casual overdraft rate | Rates current on and from 9 October 2026; read 9 October 2026 |
| Bankwest: media statement, "Bankwest focuses future on retail customers nationwide" | That its business customers moved to Commonwealth Bank products and services | Published 17 February 2022; read 9 October 2026 |
| Shift: business overdraft page; rates and fees page | Its rate band and ladder, annual fee and limits | Rates last updated 24 September 2026; read 9 October 2026 |
| Dynamoney: business overdraft page | Its indicative rate, the line fee in its calculator and its limits by property ownership | No page date; read 9 October 2026 |
| Prospa: line of credit page | Its weekly service fee, its $40,000 example and the absence of an establishment fee | No page date; read 9 October 2026 |
| Lumi: business line of credit page | Its starting rate, its $1 million ceiling and the absence of ongoing fees | No page date; read 9 October 2026 |
| Moneytech: line of credit page | That it publishes no rate or fee | No page date; read 9 October 2026 |
| Switchboard Finance: non-bank lender policy matrix, overdraft lane | The observed row in the rate table | September 2026 |
| Reserve Bank of Australia: Statistical Table F5; cash rate target page | The small business overdraft and term loan indicator rates; the cash rate target and its effective date | F5 observation 30 September 2026, published 8 October 2026; cash rate effective 30 September 2026 |
| Reserve Bank of Australia: Bulletin, May 2026, Bank Fees in Australia | Where banks' fee income from business and government customers comes from, and fee revenue as a share of business credit | 28 May 2026 |
| Reserve Bank of Australia: Bulletin, May 2026, Developments in Banks' Funding Costs and Lending Rates | How variable-rate business loans are priced | 28 May 2026 |
| Australian Banking Association: Banking Code of Practice | Notice of a rate change and of other changes, repayment on demand, and who the Code covers: paragraph 1, paragraphs 34 to 38, paragraph 85 and the Small Business test | In force since 28 February 2025; read 9 October 2026 |
| ASIC: Regulatory Guide 234; ASIC Act 2001, sections 12DA and 12DB | The guidance on "from" and "up to" rates, the comparison rate rule, and the prohibition on false or misleading representations about price | RG 234 issued 9 June 2026; Act read 9 October 2026 |
| ASIC: National Credit Code page | When the National Credit Code applies | Last updated 1 August 2025 |
| ASIC: Unfair contract term protections for small businesses | The small business contract test and the default fee example | Information sheet updated March 2025 |
| Australian Taxation Office: Deductions for operating expenses; Financial supplies | Deductibility of interest and bank fees; that lending is an input-taxed financial supply | Last updated 1 October 2026 and 14 September 2026 |
| Australian Financial Complaints Authority: small business page | AFCA's definition of a small business | Read 9 October 2026 |
Rates, fees and offers change without notice and several of the figures above are explicitly dated by the lenders themselves. Nothing on this page is a quote, an offer, or a statement that any rate or fee is available to you, and no approval, cost or timeframe is promised. Confirm every figure with the lender before you act on it, and confirm the tax treatment of your own facility with a registered tax agent.
If you came here because you are about to apply: do not carry the lowest published rate straight into the application as an expected outcome. First work out the limit and average drawings you actually need, then compare the lender's returned rate, holding-fee base, one-off fees and security conditions as one annual cost. If you are still deciding between structures, read the line-of-credit comparison before you choose the product.
If you would rather start with the product than the price, our business line of credit and overdraft page sets out what Switchboard can arrange, and the line of credit versus bank overdraft comparison covers the choice between the two structures.
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