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Prices in Australia hitting a 20-year high and a 5.1 per cent annual inflation rate will worry most households about affordability, and how far prices may continue to climb. The increase is linked to a global streak in inflation that is predicted to continue well into 2023. However, new research suggests a majority of Australians with family overseas believe their overseas relatives will fare worse than them, with 54 per cent planning to send their overseas families money or goods, or pay their bills.

The finding was derived from a survey of an independent panel of 625 Australians who have family overseas, commissioned by Money Transfer Comparison, a global comparison website helping Australian consumers and businesses source the best rates in international money transfers.

When asked if they plan to help their overseas relatives this year, 35 per cent of survey respondents said they will send money, 13 per cent said they will pay their bills at least once, and 6 per cent said they would send goods from Australia.

Money Transfer Comparison also asked how much they would send their families in funds over the next two years. Sixteen (16) per cent said they would send $10,000 or more, nearly one third (30 per cent) said they would send $5000 or more, while 37 per cent said they would send $1000-3000.

Younger Australians appear to be more willing to help their families overseas: 65 per cent of 18-30-year-olds said they would, compared with 60 per cent of 31-50-year-olds and 41 per cent of over-50s.

A higher proportion of younger age groups are also planning to send more in funds: 52 per cent of 18-30-year-olds said they would send their families more than $3000, compared with 49 per cent of 31-50-year-olds and 38 per cent of over-50s.

Alon Rajic, Founder and Managing Director of Money Transfer Comparison, says: “In a climate of rapidly growing inflation, a sizable proportion of Australian households are willing to impact their own finances to help their relatives overseas. This indicates that, with inflation a global problem, families here believe they will be better off than families in other countries.”

Across the major states, a larger proportion Victorian residents (60 per cent) and NSW residents (57 per cent) plan to help their families overseas this year, compared with just 36 per cent of South Australian residents and an equal 44 per cent of West Australian and ACT residents. Just 18 per cent of Queenslanders and 22 per cent of South Australians were willing to send more than $5000 overseas, compared with one third (34-37 per cent) of residents in other states.

With the survey showing that 33 per cent of respondents generally send money internationally through their bank and 22 per cent through a specialist money transfer service, Alon urges households to reduce the costs of sending money. “With disposable income expected to continue dropping for Aussies, it’s a good idea to shop around for the most affordable transfer services to ensure you maximise the funds going to family overseas and avoid being stung by fees and high exchange rates,” he says.

Alon’s 6 tips for reducing costs when aiding family overseas:

  1. Transfer money at the right time. Choose the best time to transfer money as currency rates fluctuate up to 1 per cent daily – particularly now with inflation and rate hike expectations. As it can be difficult to predict, money transfer services offer ‘rate alerts’ that enable you to pick the most cost effective day and time for a transfer.
  2. Avoid money transfer fees. With many international wire fees starting at $35 and only going up from there, they can add up to a significant extra expense. Money transfer providers often offer better deals than banks, with some services such as Torfx and SendPayments offering $0 transfer fees. Using a money transfer comparison tool can help you to find the best low fee transfer deals.
  1. Buy goods from overseas e-stores. Before sending parcels to family overseas, research whether you can purchase the item from a store in their country. Using local websites will often drastically cut shipping costs and the parcels will arrive much sooner than an international delivery.
  1. Find cheap international shipping. The best international shipping deals can vary between parcel sizes and international destinations. Using a courier comparison service can help you discover which delivery partner can offer you the most cost-effective international shipping.
  1. Choose the best currency for overseas payments and transfers. Some countries such as Thailand, Mexico and India accept USD widely as a form of currency. If there are multiple currencies accepted in the country you are transferring money to, it may be more cost effective to transfer to a different currency, depending on the exchange rate. As a rule of thumb, it is more cost effective to exchange into the major currencies (such as USD or EUR) rather than exotic currencies such as Thai Baht.
  1. Make few transfers, with larger sums. Consider less frequent, larger transfers or payments.

Many currency transfer systems offer better rates – or will allow you to negotiate a better rate – for larger sums of money.