Australian financial institutions have responded to calls from the Government and stakeholders throughout the region and brought down the cost of remitting money to the Pacific, said Parliamentary Secretary to the Treasurer, David Bradbury.
Mr Bradbury told the Pacific Islands Forum Economic Ministers' Meeting (FEMM) in Apia, Samoa, last week that after working with the Government, Australian banks offering remittance services to countries in the Pacific had moved to significantly reduce the fees they charge for the service.
"Remittances from Australia are a significant component of the national income of many of our Pacific neighbours," said Mr Bradbury. "In some countries, like Samoa, remittances can account for up to 30 per cent of GDP.
"Until recently, remitting money from Australia had attracted relatively high fees that eroded the funds that would otherwise have been used to support communities in their destination countries."
The Australian and New Zealand-funded website www.sendmoneypacific.org has improved transparency in Australia's remittance market and has seen remittance prices fall by around 3 percentage points to 20.68 per cent since January 2009.
"Following the work of the Australian Government and the FEMM, Australian banks and money transfer operators have dramatically cut their fees for remittances.
"Since last year's FEMM, a range of new products and services have also been introduced to make it easier for people to send money, with one provider offering self-serve electronic kiosks in easy-to-access locations."
On 11 July, Westpac substantially cut its telegraphic transfer fee for remittances to the Pacific of less than $500 from $30 to $10, and for those with Westpac accounts in the Pacific, their inward telegraphic transfer fee will now be waived. ANZ will also soon be launching a stored-value card that has the potential to cut remittance fees to around six per cent of the total amount remitted.
"I would like to congratulate the Australian financial institutions and service providers who have moved to cut their fees, and I would like to acknowledge the work of the many stakeholders involved in bringing this issue to the attention of Ministers in the region," said Mr Bradbury.
26 July 2011