According to the 2019 UN Migrant Population Report, there are approximately 577,000 Australians in the diaspora. The largest Australian diaspora population is in the United Kingdom (145,000), followed by the United States (96,000), and New Zealand (67,000).
In 2017, Australia received remittance inflows totalling $1,941 million. Over 50 per cent of this came from the US, UK and New Zealand.
In 2016, 0.948 million Australians were the only people considered remittance reliant. Whether you are sending money home to family and friends or to finance business interests, getting the best deal should be your priority.
Moving funds across countries can be tricky because of the currency exchange risks, cost of transfers, and the length of time it takes to have your money delivered to your loved ones. Sending to Australia is not any different, hence the reason you should read along to find out the best ways to send money home, the information you need, and the factors to consider.
Sending money to Australia is simple and easy. Follow these steps to get started.
There are multiple ways to easily send and receive money in Australia but these will largely depend on the provider you decide to use. Below you will find everything you need to know about sending and receiving money.
Depending on the country you are sending from, there are several options available such as bank transfers, money transfer service providers, PayPal and other channels. The following are the channels commonly used to send money to Australia.
Banks have been the traditional channel for sending money to Australia. The safety and ability to transfer high-value amounts to recipients in ‘the land Down Under’, makes them attractive to most people. However, banks transfers come with challenges of their own.
Despite some banks in the United States and the United Kingdom having agreements with Australian banks, the cost of transfers is still high. Some banks take a longer time to transfer money and give low exchange rates. For instance, some banks in the UK charge fees of up to £40 per transaction.
Money transfer operators (MTOs) offer the best ways to send money to Australia. They leverage their extensive network to give you fast, affordable and convenient money sending options.
Some of the providers to use are Western Union, MoneyGram, Ria, Xoom, WorldRemit and Transferwise. Setting up on these MTOs is simple. You’ll have to sign up for an account online, choose the sending method, pay for your transfer and send.
There are three main ways of paying for your transfer:
Money transfer services to Australia can either be bank transfers or cash pickups. The choice of what to use depends on your preferences.
Bank Transfers -These are done on the MTO platform directly to the recipient bank account. They are faster and cheaper compared to inter-bank transfers. Most providers support all 53 banks in Australia.
MTO to bank transfers can take up to two days, but when you transfer in Australian dollars (AUD), the recipient can get the money within 24 hours.
Cash Pickup – You can send money to your loved ones in Australia through the payout networks of the different providers. Xoom has partnered with Ria in Australia to widen its network. Currently, it has 59 locations.
MoneyGram has partnered with 600+ 7-Eleven convenience stores, Travel Money Oz foreign exchange retailers, and 350+ United Petroleum service stations. Cash pickups are instant, especially when the transfer is paid using a debit or credit card.
If you want to send money to Australia, you’ll need to check that you have everything that is required by the providers. The Australian government is strict on money laundering. They have a law known as the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
Here’s the information you’ll need to send money to Australia using money transfer service providers:
Other providers may request additional information such as your relationship with the recipient, the source, and purpose of the money.
When you are in Australia and exploring ways through which you can receive money, you’ll find several options.
This method is safe and convenient for receiving large sums of money. Ensure you give the sender your correct bank details and codes to prevent delays. Banks deposits can be through interbank transfers or MTO to bank transfers.
When sent from banks, the transfers may cost you more to receive. You could ask the sender to take up all the costs of the transaction or use an MTO. The advantage of money transfer service providers is that they don’t require the sender to own a bank account and their fees are minimal.
Cash collections are almost instant. Providers such as Western Union, MoneyGram, Peramax, Xoom, TransferWise and Ria, offer under 60 minutes transfers. Once the money gets to Australia, you’ll receive a notification either through SMS or email.
Unlike in other countries, Australia is relatively safer. You can receive amounts as large as $5,000 without fear of being mugged or losing it. Notwithstanding the security, ensure you collect your money from safer locations such as malls or shopping centres.
MTOs require proof of identity and other information that will help then verify that you are the right person to collect the money. There is a duty of care that providers are expected to exercise on behalf of the government. Some of the information they may require from you include:
You may be asked to fill a form and provide more information as part of the Know-Your-Customer (KYC) policy.
Australians in the diaspora have a lot of obligations, projects, and business interests at home. The following are some of the reasons why Australians send money home.
The cost of living in Australia is higher than in many countries around the world. Housing and fuel expenses cost more than in the United States and the United Kingdom.
On average, the monthly living cost per person is $2,835 while for a family is $5,378. Households without a reliable source of income may need support in the form of diaspora remittance.
As of 2014-2015, there were a total of 2.1 million businesses in Australia. Among these businesses are those owned by Australians in the diaspora. From time to time, cash flow constraints may occur. Part of the remittances may be to pay workers, short-term debts, capital addition for new projects and so forth.
Most Australians abroad run businesses or are in high-level employment. Some of the earnings they get are channelled back home into real estate investments, financial assets investments like shares and bonds or in structured savings accounts.
According to the OECD Data released in 2015, Australian households are the most indebted globally. Most of the debt is in the form of car loans, house loans, and credit cards. Depending on the way the debt is structured, it may span years or even decades. Part of the money sent home could be for repaying such debts.
Whether it is weddings, charity or festivities, many Australians in the diaspora want to be involved in activities back home. Depending on the frequency and budget sizes of the events, the amounts sent can be substantial.
When sending to Australia, you have every reason to look out for a means of transfer that is cheaper, faster and convenient to the recipient. Money transfer service providers can give you these benefits and more. Here are some of the top reasons why your next transfer should be through an MTO.
Australia is a mixed economy with the highest median wealth per adult. Their currency is stable, but the recent economic shakeups may change the landscape. The following are some of the factors you should look at when sending to Australia.
The onus is on you to choose the method of money transfer that will give you the most benefits. Even money transfer services have variations among themselves. Don’t be caught unawares, get the right information at the right time to help you make the right decision.
Sending money anywhere else in the world is as easy as sending money to Australia. If you’re looking to send money to another country, here is the list of the most popular destinations.
Jonathan is the founder and editor of MoneyTransfers.com. Jonathan is highly experienced in the currency transfer market, having previously worked in the FX trading industry, alongside being an avid traveller. Using his knowledge he identified a need for transparency and further education to help people save money on their money transfers, leading to the creation of MoneyTransfers.com