This could spell the end of the business model in Oz.AUSTRALIANS...

This could spell the end of the business model in Oz.

AUSTRALIANS could save $600 million a year under legislation to be introduced in Federal Parliament next week banning $2 ATM fees.
The raft of changes in the legislation being introduced by Greens Senator Bob Brown will reduce the $5 billion a year charged in bank fees and put an end, he claims, to excessive profiteering by banks on mortgage fees.
The Greens' Banking that serves the Community Bill allows basic fee-free accounts, fair price mortgages and up-front disclosure of exit fees on mortgages. Senator Brown has the backing of the Family First party and Independent Senator Nick Xenophon.
"The proposed laws will put the power back in the hands of customers and be a welcome force in keeping banks honest," Senator Brown said.
"This Bill will go down well with a public who have lost a lot of respect for banks.
"The Government will have to take this seriously. There is a growing gap between rich and poor and this is a Labor government that should be willing to take up such measures and implement them."
The introduction of the $2 withdrawal fees on ATMs considered "foreign" or different has not been popular with customers and the Greens' Bill will put pressure on the Rudd Government to act.
The most recent data from the Reserve Bank shows that customers have been using ATMs less anyway, although there were more than 25 million cash withdrawals at foreign ATMs in February, representing $50 million in fees.
Another key part of the Bill is a requirement that banks demonstrate that exit fees from mortgages reflect a reasonable cost and do not just act as a deterrent to change lenders.
The Greens also want Australian banks to adopt UK standards that require they provide a mortgage that more fairly reflects the gap between the rate they pay for money and what they charge borrowers.
The National Australia Bank has admitted many fees are unnecessary. The NAB has scrapped fees for overdrafts, handling cash and dishonoured cheques, foregoing $40 million a year in fees.