Let us begin by explaining the importance of the remittance industry. The remittance industry is booming more than ever because it provides international money transfer services to immigrant settlers, workers and international students, who wish to send money to family and friends in their home countries.
Funds are remitted for personal and business reasons, including financial support to family members, for emergencies, gifting, to support children’s education etc. They all transfer money online or in-store to reach their loved ones in a whole other country.
As far as Australia is concerned, there are around 6,400 providers of remittance services in Australia, registered under AUSTRAC. The remittance sector is a significant contributor to the Australian economy in dual ways:
- Employment Opportunities
- GDP (Gross Domestic Product)
Even though there are no specific figures available on the number of people employed by the sector, the existence of these many remittance providers indicates that numerous employees would be working in the sector facilitating smooth international money transfers.
Although there are no official sums on the contribution of the remittance industry to Australian GDP. But a huge amount will come alive once the total revenue of the industry is calculated which includes:
- Inward remittances, where the domestic industry receives “abroad-agent” disbursement fees.
- Outward remittances, which involve international disbursement fee payments to agents abroad.
- From this needs to be subtracted the number of intermediate inputs to the whole process, such as the IT costs.
A sum total of the revenue of the remittance industry forms a significant part of Australian GDP owing to the economic growth. Apart from these, the changes in currency exchange rates bringing vital influences on the imports and exports of Australia, the currency inflation, increasing or decreasing of interest rates etc. are some other areas through which the remittance industry is, directly or indirectly, impacting the Australian economy. Do overseas remittance with the best online money transfer in Australia and try to waver the economy digits in the country’s favour.
