Adam Bandt (Melbourne, Australian Greens) Share this | Hansard source

by leave—I move Greens amendments (1) to (17) together:

(1) Schedule 1, item 2, page 3 (after line 27), after subsection (2F), insert:

  (2G) In addition to the effect that this Act (other than Parts IIIA, VIIA and X) has as provided by another subsection of this section, this Act (other than Parts IIIA, VIIA and X) has, by force of this subsection, the effect it would have if:

  (a) each reference in Part IVD to an ATM transaction were a reference to an ATM transaction that occurs:

     (i) by means of a postal, telegraphic, telephonic, or other like service (including electronic communication); or

     (ii) by means of an automatic teller machine provided by a bank (other than a State bank), or any other institution engaged in banking, in the course of banking (within the meaning of section 51(xiii) of the Constitution); and

(b) each reference to a corporation included a reference to a person not being a corporation.

(2) Schedule 1, item 3, page 10 (after line 32), after Part IVC, insert:

Part IVD—ATM transactions

Division 1—Preliminary

55N Object of this Part

     The object of this Part is to ensure that:

  (a) account holders are not charged for ATM transactions made using automatic teller machines owned or leased by the persons with whom their accounts are held; and

  (b) amounts charged for other ATM transactions:

     (i) are not excessive; and

     (ii) reflect the reasonable costs of allowing a person to make an ATM transaction.

55P Definitions

     In this Part:

  ATM transaction means a cash deposit to, a cash withdrawal from, or an enquiry about the balance of, an account that is made by means of an automatic teller machine.

55Q Part not to apply to State banking

     This Part does not apply with respect to State banking that does not extend beyond the limits of the State concerned.

Division 2—Limit on charges for ATM transactions

55R Limit on charges for ATM transactions

No charges for ATM transactions made using own -branded ATMs

(1) A corporation must not, in trade or commerce, charge a person an amount (however described) for making an ATM transaction if:

  (a) the corporation is an ADI (authorised deposit-taking institution) for the purposes of the Banking Act 1959; and

  (b) the transaction relates to an account held by the person with the corporation; and

(c) the automatic teller machine used to make the transaction is owned or leased by the corporation.

ATM transactions made using foreign ATMs must not be excessive

(2) A corporation must not, in trade or commerce, charge a person an amount (however described) for making an ATM transaction that is excessive (see subsection (3)) if:

  (a) the corporation is an ADI (authorised deposit-taking institution) for the purposes of the Banking Act 1959; and

  (b) the transaction relates to an account held by the person with the corporation; and

(c) the automatic teller machine used to make the transaction is not owned or leased by the corporation.

(3) For the purposes of subsection (2), an amount charged for making an ATM transaction is excessive if the amount exceeds the amount permitted by a standard determined under section 18 of the Payment Systems (Regulation) Act 1998.

(4) For the purposes of subsection (3):

  (a) the Reserve Bank of Australia must ensure that there are at all times in force standards under section 18 of the Payment Systems (Regulation) Act 1998 permitting amounts for the purposes of subsection (3); and

  (b) the making of such standards is taken to be in the public interest; and

(c) an amount permitted for an ATM transaction must reflect the reasonable costs of allowing the person to make the transaction.

55S Acquisition of property

Scope

(1) This section applies to the following provisions of this Act:

  (a) section 55R;

  (b) any other provision to the extent to which it relates to section 55R.

Effect of provision

(2) The provision has no effect to the extent (if any) to which its operation would result in the acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) otherwise than on just terms (within the meaning of that paragraph).

(3) Schedule 1, item 4, page 11 (line 2), after "55B,", insert "55R,".

(4) Schedule 1, item 5, page 11 (after line 5), after subparagraph (ia), insert:

     (ib) section 55R;

(5) Schedule 1, item 6, page 11 (line 7), after "55B,", insert "55R,".

(6) Schedule 1, item 7, page 11 (line 9), after "55B,", insert "55R,".

(7) Schedule 1, item 8, page 11 (after line 12), after subparagraph (ia), insert:

     (iib) section 55R;

(8) Schedule 1, item 9, page 11 (line 14), after "55B,", insert "55R,".

(9) Schedule 1, item 10, page 11 (line 16), after "55B,", insert "55R,".

(10) Schedule 1, item 11, page 11 (line 18), after "55B", insert "or 55R".

(11) Schedule 1, item 12, page 11 (line 20), after "55B", insert "or 55R".

(12) Schedule 1, item 13, page 11 (line 22), after "55B", insert "or 55R".

(13) Schedule 1, item 14, page 11 (line 24), after "55B", insert "or 55R".

(14) Schedule 1, item 15, page 12 (line 3), after "55B,", insert "55R,".

(15) Schedule 1, item 16, page 12 (line 5), after "55B,", insert "55R,".

(16) Schedule 1, item 17, page 12 (line 12), after "55B", insert "or 55R".

(17) Schedule 1, item 18, page 12 (line 19), after "55B", insert "or 55R".

The minister, in summing up, said—I am paraphrasing slightly—that recovering costs is not unreasonable but profiteering is. That is a very good principle and it is one that, under these amendments, we are seeking to extend not just to credit cards but to ATM transactions. At the moment in Australian society you pretty much have no choice but to use a card. You use a card either to get your cash out of the bank or to make a payment. What the bill does—and this is why we are supporting it—is say: if the way you are making your payment is through a credit card then the merchant can charge you a fee for processing but they cannot profiteer out of it. Under this legislation, when it goes through, the merchant will only be able to charge a fee that reflects the cost to them of processing transactions et cetera. That is a good move. But what the bill does not do is tackle one of the other ways in which banks make hundreds of millions of dollars from people, which is through the $2 to $3 ATM fees that you see.

Most people now go to their own bank to get money out in order to try and avoid these $2 to $3 ATM fees. That is a good thing. People should not be charged for the privilege of accessing their own money. In modern society, you cannot get by without having a bank account. Banks get huge amounts of money put into their coffers with people's salaries, welfare payments and so on. If you go to your own bank to get money out you should not be charged for it. That is what most banks are doing now. That is a good thing, and it will be enshrined in law if these amendments are passed.

We all know there are many, many times when, despite your best efforts, you find yourself without enough cash in your wallet. It might be that the place you are wanting to purchase at does not take a card., so you cannot use payWave or you cannot use a credit card; or you might have some urgent purchase to make and you have nothing in your wallet and the only ATM nearby that you can get to is one that is not of your own bank. When you go to that bank to get money out you can be charged a fee of $2, $2.50 and sometimes even as high as $3. We know it is worse in many rural and regional areas. But what we also know is that the real cost to the bank for providing that service, of letting you get your money out even though it is not your own bank, is about 77c. The rest of the money is the cream on top of that, which the bank is making. Banks who are making world-leading record profits in this country should not be allowed to profiteer from people accessing their own money. You should have a right to access your own money from an ATM. If there is a cost because you are not going to your own bank but to another bank then let us do what this bill is doing for credit cards and limit the cost of the ATM fee to a reasonable cost to the banker for providing the service.

These amendments will allow a standard to be set. The RBA, the Reserve Bank of Australia, will set that standard with regard to the cost to the bank for recovering the cost of the transaction. So banks will not be left out of pocket by this amendment, but consumers will be better off. We are saying: let us take a very, very good principle that this government is applying to credit cards and also apply it to ATM fees. It is essential, because people are sick of seeing that $2 or $3 fee come up when they are getting their own money out. People are sick of being charged for the privilege of accessing their own money, because often they have tried their best to get to their own ATM and they just cannot for whatever reason.

What we also know is that these fixed fees hurt the poor and low-income earners more than everyone else, because they are the ones who are most likely to withdraw small amounts of money. When you take $20, $40 or $50 out the ATM, whacking a $2.50 fee on top of that is a much, much bigger impost on these people than it is on someone who is in a position to take out several hundreds of dollars at one particular time. So it is an equity measure as well.

Consumer groups and the Greens have been campaigning for years to rein in excessive ATM fees that are just another way for the banks to make money. When we remember that the big four banks are the most profitable in the world and are bringing in in the order of $30 billion profit combined, this is one small way that they could give back to the community. They could say: we are no longer going to profiteer from people getting access to their own money. I commend these amendments to the House. If the minister sincerely believes, as I am sure he does, in the spirit of these amendments for credit card fees, there is no logical reason not to extend them to ATM fees as well.

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