The bank has its origins in the 19 September 1957 incorporation of the CSIRO (Commonwealth Scientific and Industrial Research Organisation) Co-operative Credit Society.

Walter Ives was appointed as chairman, and the first 40 members, limited to officers and employees of CSIRO aged over 18, were admitted on 15 October.

[3] At the end of 1966 the credit union had over 1770 members, and in that year Joel Belkin was appointed the first full-time general manager (which he held until 1981).

[8] In April 2022, Bank Australia responded to shareholder demands[9] and announced their Climate Action Strategy, setting a target to achieve net zero emissions by 2035.

As an authorised deposit-taking institution, Bank Australia is covered under the Financial Claims Scheme.

Like all other authorised institutions, balances of up to A$250,000 are guaranteed by the Australian Government should Bank Australia collapse.

The reserve, made up of four properties, is located in Victoria's Wimmera region and is protected from development forever through a conservation covenant.

[26] In August 2022, Bank Australia's chief impact officer, Sasha Courville, announced that Bank Australia would cease funding car loans for new fossil fuel (internal combustion engine) vehicles from 2025, as part of its commitment to achieve net zero carbon emissions by 2035.

[28] As part of the fund, the bank runs an annual customer grants program, many concerned with investment in sustainability and community renewable energy projects.

In 2023, as part of its commitment to reconciliation in Australia, it launched its First Nations Recognition and Respect Strategy 2023-2030.

It also aims to grow lending for enterprises such as Caring for Country,[30] and is establishing a First Nations Leadership Group.