CBA Settles Colonial First State Interest Rates Class Action for $249 Million — Note, This Is an Australian Case

Commonwealth Bank of Australia has agreed to pay A$249 million to settle a class action over interest rates paid on cash held in Colonial First State superannuation and wrap accounts. This is a Federal Court of Australia matter. It has nothing to do with US courts, US claim forms, or US settlement administrators — so if you’re a US reader, there’s no claim to file here. This one’s for the record and for context on how these superannuation cases have been playing out.

What CBA and Colonial First State Are Accused Of

The case goes back to 2018, when law firm Slater and Gordon filed suit in the Federal Court on behalf of lead applicant Keith Kayler-Thomson and a class of Colonial First State members. The claim: Colonial First State parked members’ cash and deposit balances with its parent bank, CBA, at rates well below what was available elsewhere.

Slater and Gordon said at the time that CBA paid some Colonial members as little as 1.25% interest — below the Reserve Bank of Australia’s cash rate of 1.5% at the time. A superannuation trustee has a legal duty to act in members’ best interests, not its parent company’s. That’s the heart of the allegation here.

The class covers cash and deposit options in Colonial First State super and wrap products between November 2008 and September 2021 — a 13-year stretch.

The $249 Million Deal

CBA, Colonial First State Investments, and Avanteos Investments have reached an in-principle agreement to pay $249 million. It still needs to clear the Federal Court of Australia before anything gets paid out. All three companies continue to deny the allegations and haven’t admitted any wrongdoing — that’s standard in a settlement like this, not an indication either way of how a trial would have gone.

One detail that matters if you’re tracking CBA as a business rather than as a class member: the bank says this settlement was already covered by a provision it had set aside in an earlier reporting period. So this isn’t a fresh $249 million hit to current earnings. That came out the same week CBA posted a strong FY26 result — cash profit up 7% to $10.98 billion, statutory profit up 8% to $10.91 billion, and a lifted final dividend.

This Is a Different Case From the 2023 Colonial Fees Settlement

Worth being precise here, because these two cases get mixed up. Slater and Gordon ran a separate class action against Colonial First State over superannuation fees — specifically commissions paid to financial advisers between 2013 and 2020. That one settled for $100 million in 2023, the Federal Court approved it in August 2024, and payouts to group members have already been distributed.

The interest rates case is a different proceeding, filed the same year as part of the same broader “Get Your Super Back” campaign, but it’s about the rate paid on cash holdings, not adviser commissions. If you were part of the fees settlement, that’s already wrapped up — this is a separate pool of money tied to a separate claim.

What Happens Next

An in-principle agreement isn’t the finish line. The Federal Court still has to approve the settlement, which typically means a notice goes out to group members, there’s a period for objections, and a court hearing decides whether the deal is fair before any money moves. Based on how the earlier Colonial fees case played out, that process can take the better part of a year from in-principle agreement to actual payment.

If you’re an Australian Colonial First State member wondering whether you’re covered, watch for a notice from Colonial First State or Slater and Gordon rather than acting on any third-party solicitation — legitimate case updates come from the court-approved administrator, not from unsolicited calls or emails.

Frequently Asked Questions

Is this a US or Australian case? Australian. It was filed in the Federal Court of Australia and applies to Australian Colonial First State superannuation and wrap account holders. There’s no US claim process tied to this settlement.

Who is being sued? Commonwealth Bank of Australia (CBA), Colonial First State Investments, and Avanteos Investments.

What’s the settlement amount? $249 million (AUD), reached in-principle and pending Federal Court approval.

What period does the class cover? Cash and deposit options in Colonial First State superannuation and wrap products between November 2008 and September 2021.

Is this the same as the Colonial First State fees settlement? No. That was a separate $100 million case over adviser commissions, settled in 2023 and already paid out. This one is about interest rates paid on cash holdings.

Has the settlement been finalized? Not yet. It’s an in-principle agreement. The Federal Court of Australia still has to approve it before any distribution happens.

Related Reading

For a look at how interest-rate allegations against a major bank play out in a US court instead, see JPMorgan (JPM) Lawsuit, Multiple Class Actions Filed Over Fraud, which covers a separate interest-rate-fixing case against a US bank.

Sources

• The Motley Fool Australia, “CBA shares bounce after settling long-running class action,” Aug. 26, 2026: https://www.fool.com.au/2026/08/26/cba-shares-bounce-after-settling-long-running-class-action/
• Slater and Gordon, “Colonial First State Rates Class Action” case page: https://www.slatergordon.com.au/class-actions/current-class-actions/colonial-first-state-class-action
• Slater and Gordon, “Slater and Gordon files first class action of ‘Get Your Super Back’ campaign,” Oct. 2018: https://www.slatergordon.com.au/media/slater-and-gordon-files-first-class-action-of-get-your-super-back-campaign
• Slater and Gordon, “Colonial First State Fees Class Action” case page (distribution concluded): https://www.slatergordon.com.au/class-actions/current-class-actions/colonial-first-state-class-action-fees

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. Facts checked against the sources listed above as of August 26, 2026. Last Updated: August 26, 2026.

Disclaimer This article is for informational purposes only and does not constitute legal advice. This case was filed in Australia and is governed by Australian law, not US law. For advice about your specific situation, consult a qualified attorney in the relevant jurisdiction.