Fees and Charges Notice
Review of Fee Structure
It has been over 5 years since G&C last conducted a review of its fee structure. We have also been operating 2 separate fee structures since 1 September 2016, following the merger with Quay Credit Union (Quay).
Given the dramatic changes over the past 18 months in payment regulation and member transactional behaviour (including a rapid rise in the use of Paywave and dramatic falls in the use of cash and cheques), together with the pending introduction early next year of real-time electronic bank-to-bank transfers, we have now completed a comprehensive review of the G&C and Quay fee structures. As a result of that review, we have developed a new and far simpler fee framework that will apply uniformly to all members (both G&C and Quay) from 1 February 2018.
In our efforts to design a single fee structure we have maintained and reinforced our principal objective of rewarding loyal members by providing them with numerous options to conduct fee-free banking.
This document explains the key features of the new fee structure. Also included are answers to Frequently Asked Questions to help members conduct fee-free banking.
Members can obtain a copy of G&C’s new Fees & Charges brochure from our website or any of our Service Centres, or alternatively you can phone us on 1300 364 400 and we will send you a copy. Although the new fee structure will only apply to transactional activity from 1 February 2018 onwards, members are encouraged to contact our staff in advance of that date if they have any queries about the changes or would like advice on how to conduct fee-free banking.
Our New Fee Structure in Brief
Over the 5 years since G&C’s fee structure was last reviewed we have closely analysed members’ transactional behaviour to determine their preferred payment channels. We have also reviewed the direct costs that are charged to G&C by external parties (eg major banks and Australia Post) in relation to each transaction type.
In reviewing our fee structure, we have done our best to maintain fairness and equity across our diverse membership. The new fee structure has been designed to satisfy the following fundamental principles:
- Members should have a reasonable opportunity to conduct ‘fee-free’ banking at G&C;
- Members should be able to conduct an unlimited number of certain types of transactions without being charged any fees;
- Members who conduct the most expensive types of transactions (including where third parties charge G&C directly for that transaction usage) should make a reasonable contribution towards those costs.
We are confident our new fee structure keeps faith with these important principles, while also ensuring that the costs of payment transactions are spread fairly and equitably across our membership.
The current Quay and G&C fee structures have always included a monthly account fee, though in both cases that fee has only been charged to a small minority of members. Under the current Quay fee structure, there is a $5 monthly fee (charged to members who do not maintain a sufficient volume of business), whereas under the current G&C structure a $7 monthly fee is charged to a small portion of members who do not qualify under numerous exemptions.
The new single fee structure for both G&C and Quay members (effective 1 February 2018) continues this longstanding principle of exempting the vast majority of members from a monthly account fee. The new monthly account fee has been set at $6 (ie mid-way between the old G&C and Quay fees), but will not be charged to:
- members who maintain (throughout the month) a minimum business volume of $5,000 (which is the combined balance of all savings, term deposits and loan balances);
- members that are under 18 years of age; or
- members that hold a Premium Home Loan Package
Members in any of the above 3 categories will be automatically exempt from the $6 monthly account fee. In addition, all members will have access to an unlimited number of free transactions of the types set out in Table 1 below:
Table 1: Unlimited Free Transactions
|Online Banking transactions||Unlimited Free|
|Mobile Banking transactions||Unlimited Free|
|ATM withdrawals||Unlimited Free|
|Automated 'Moneyline' transactions||Unlimited Free|
|PayWave transactions||Unlimited Free|
|Visa Debit purchases using the 'credit' option||Unlimited Free|
|All Direct Debit transactions||Unlimited Free|
|All Direct Credit transactions||Unlimited Free|
|BPAY transactions||Unlimited Free|
|ATM balance enquiries||Unlimited Free|
|Electronic Periodical Payments||Unlimited Free|
|Deposit or balance enquiries at G&C Service Centres||Unlimited Free|
Specific Fee Changes
We have also made some adjustments (both increases and decreases) to specific fees charged in relation to certain types of high cost transactions (eg where G&C is charged directly by Australia Post or major banks). These changes have been made to more accurately reflect the cost to G&C of providing the relevant services, although in most cases the amounts being passed on do not fully recover the charges to G&C by those third parties.
For further information on these specific fee changes, we encourage members to review the new Fees & Charges brochure and the FAQs (available on our website or from branches). For ease of comparison, you can also access copies of the current G&C and Quay fee brochures.
Impact of the Changes
Based on our analysis of members’ recent transactional behaviour, most members will pay lower fees following the changes that will take effect on 1 February 2018, while a very small segment of our membership (around 7% based on our analysis) may incur higher fees unless they modify their past transactional behaviour. However, most of those members should have the opportunity to access “fee-free” banking with G&C by making relatively minor adjustments to their banking and transactional behaviour.