The decrease of up to 70 per cent applies to transactions of less than $1,000 taking place online or within the CommBank app using services such as Pay-to-Mobile.

The reduction is in line with the Bank’s strong support for the Australian Government’s commitment to Labour Mobility Initiatives for Developing Countries in the Pacific (Pacific Labour Scheme). G20 Leaders are committed to lowering the cost of foreign exchange remittances because of the significant contribution to developing country GDP that comes from money that flows from the movement of foreign workers.

International studies by the World Bank and  the Department of Foreign Affairs and Trade have shown that for many developing nations, remittances from the diaspora of workers overseas represents a significant proportion of in-country GDP, in some cases more than 30 per cent.  This money provides support for families but also much needed funds for health, education and development.  By lowering the fees for IMTs more of the money remitted will make it back to the communities where it is needed.

Carmen Beverley-Smith, Commonwealth Bank’s Managing Director of Cash-flow and Transaction Services (Industry Solutions) said: “A worker from Fiji sending $250 home would have previously had that amount reduced by 11 per cent in fixed fees. Now that is only 3 per cent at $6 per transaction.”

“This fee reduction is a tangible way the Commonwealth Bank can improve the lives of communities in the Pacific which means that more of their earnings will make it back to their home country and to their families, improving financial inclusion and driving positive change through innovation and good business practice,” Ms Beverley-Smith said.