An increase in remittance due to larger immigrant population.
18 February 2016: Australia is the fifth largest contributor to remittance for China. In 2014 alone, Australia sent USD$2,936 million to China in remittance. Remittance is growing since many immigrants in Australia, especially the Chinese, are sending money back to their families.
Why do people send money back to their families? For Chinese immigrants, the family is central to their culture so it's a strong motivation for them to give money back to their relatives even if it means they will suffer financially.
The table below shows Australia’s remittance flow to and from China.
|Country||Amount received from China (USD Million)||Amount given to China (USD Million)|
More money is being sent to China from Australia because the number of Chinese immigrants has increased over the past few years.
In 2014, 447,000 Chinese-born people immigrated to Australia. This group makes up 1.9% of the Australian population. Although this is seemingly small, the number of Chinese-born immigrants has doubled in the past 10 years from 205,200, according to the Australian Bureau of Statistics (ABS).
So how do I send money overseas?
Sending money overseas will help your friends and family if they're going through financial difficulty. Here are some of the best tips to help you avoid problems and pay less fees.There are several secure ways to send money from Australia overseas. For large transfers, it’s best to shop around for a good currency exchange rate.
These are the four ways of transferring money overseas:
- Money transfer companies. These companies make you open an online account which permits you to transfer money via the Internet. The company can either put the money straight into the recipient's bank account or the company will organise a meeting place for the person to get the money. This method is cheap and fast but make sure you’re comfortable online and know the recipient’s bank details.
- Bank account transfers. Transfer money between bank accounts by using your own and the recipient's, known as an international money transfer. Sometimes this is more expensive and it usually takes two to five days to reach the recipient.
- Money transfer (via a money transfer company). Transfer money overseas using cash or EFTPOS. You could use the company store front or a third-party store to transfer the money to the intended recipient. Notify the recipient so they know to pick up the money from a local office. This method of transferring money is very fast but often very expensive.
- International Money Order (IMO). This is generally a safer method over the other three options. So here's what you do: you'll need to give money to a bank and you'll receive an international guarantee cheque. Post the cheque to whoever you want to receive the money and the recipient then cashes the cheque at a bank which is local for them. Although this is a secure and safe type of payment, it is slower than something done over the Internet.
Use finder.com.au’s international money transfer comparison to check out the best exchange rates so you can make the most out of your transfer.