An inquiry will be made to address Australia’s status as the third most expensive G20 country to send money overseas. 

The Australian Competition & Consumer Commission (ACCC) will focus on sending money overseas and buying foreign cash, and the foreign currency conversion services with the big four banks in Australia. 

“The World Bank has reported that Australians sent around AU$8.8 billion overseas in 2016. Yet they also found that Australia is the third most expensive G20 country for consumers and small businesses to send money from,” ACCC Chair Rod Sims said. 

“This means that if you send AU$1000 overseas from Australia, on average you’ll pay AU$9 more than if you sent an equivalent amount from the United Kingdom, and AU$23 more than if you sent it from the United States. Given the amount of funds Australian remit, these higher charges can amount to hundreds of millions of dollars each year across the economy,” Mr Sims said. 

According to the ACCC, customers are consistently confused with the way exchange rate prices are presented, as they struggle to understand the different types of prices charged for international money transfers. 

“The exchange rate you google is not the exchange rate you get from the big four banks. The difference is known as the ‘mark-up’, and it’s often a big part of the price consumers pay when converting currency,” Mr Sims said. 

Many customers have already complained with the high mark-ups from the big four banks, as well as the additional transaction fees. 

Customers may provide their opinions and experiences to the inquiry by 22 October 2018 through forex@accc.gov.au