There is a vast international literature exploring the consequences of low interest rates for various banking sectors. In this paper, the author explores how this international literature relates to the Australian banking sector, which operates differently to other jurisdictions. In the face of low rates, the profitability of Australian banks has likely been less adversely affected than what the international literature would predict, but the flip side to this is that the pass-through of monetary policy to lending rates may have been more muted. The author then uses a recent advance in macro-financial modelling to explore whether pass-through in Australia could turn negative – the so called ‘reversal rate’ – and finds that the features of the Australian banking system mean a reversal rate is highly unlikely to exist in Australia.