Banking & Saving - Greens call for removal of Australian banking fee

Proposals to withdraw a $2 fee that people are forced to pay when using an ATM provided by a bank they are not a customer with are set to be made by the Australian Green Party.

The Australian Green Party is in favour of removing a $2 fee currently placed on non-customers withdrawing money from an ATM.

It is set to propose changes to the trade practice law to see the abolishment of the Australian banking fee, the Australian Associated Press reports.

This would hopefully mean more money is kept in people's bank accounts and therefore they could have an increased amount to stash away in savings accounts.

Bob Brown, the party's leader, said: "Australians spend around $1,000 on bank fees (annually), 20 per cent more than in the UK where ATM fees don't exist."

In addition, he noted the Reserve Bank of Australia said in 2000 the cost of processing ATM transactions was about 50 cents and this is "likely to be even lower now".

This news comes after John Kavanagh, writing for the Sydney Morning Herald, said last month fees banks put on a transaction account are now "well entrenched".

By Emma North