Bank closure a serious setback to bushfire recovery

Published on 26 March 2026

Murrindindi Shire Council has expressed deep concern about the decision to close the Community Bank Kinglake branch, warning it risks undermining bushfire recovery and will leave the community without a critical local service.

The branch will close on Friday 5 June 2026, forcing residents to travel around 25 kilometres to access the nearest full-service bank in Hurstbridge.

Portfolio Councillor for Economic Development, Local Jobs and Skills Cr Sandice McAulay said the closure comes at the worst possible time, as communities continue to rebuild following the January 2026 bushfires.

“This decision lands right in the middle of recovery,” Cr McAulay said.

“We are working with residents rebuilding their homes, farmers restoring their properties, and small businesses trying to stay afloat. Access to local banking is part of that recovery.”

Cr McAulay said banks had seen firsthand the need for local presence after the fires.

“In the days following the bushfires, banks came into our communities to provide support. They saw the importance of face-to-face services during times of crisis,” she said.

“But recovery does not end after the first few weeks. Our communities need ongoing support.”

Cr McAulay said the closure will leave large parts of the Shire without access to a bank.

“Kinglake will now be left without a bank. Alexandra does not have one. The only full-service bank branch remaining in the Shire is the Bendigo Bank in Yea,” she said.

“That is a significant gap in essential services.”

Cr McAulay said removing a bank from a recovering community creates immediate pressure.

“People are dealing with insurance claims, grants, loans and day to day finances after disaster,” she said.

“To lose a local branch now adds another layer of difficulty.”

She said the shift toward digital banking does not reflect the reality in rural communities.

“We still have connectivity gaps, vulnerable residents who rely on face-to-face services, and businesses that depend on cash handling,” she said.

“Digital first does not work everywhere.”

Council acknowledged Bank@Post services remain available, but said they are not a substitute for a full-service branch.

“A post office cannot replace a bank. This is a reduction in service.”

Council is calling on State and Federal Governments to act.

“We cannot rely on market forces alone to deliver essential services in rural communities,” Cr McAulay said.

“We need stronger expectations to ensure communities are not left behind, especially during recovery.”

“Our community has been through fires, floods and is now facing the loss of essential services at a time we should be rebuilding.”

“Regional communities cannot continue to lose the services they rely on.”