News

Australian ATM base grows

July 17, 2003

SYDNEY -- Australia had more than 16,000 ATMs in June 2002, according to the Reserve Bank of Australia, up from fewer than 9,000 in 1997, and almost triple the number of bank branches.

According to a recently released Reserve Bank report, $97.9 billion was withdrawn at ATMs in 2002, more than double the $47 billion in 1995.

The Reserve Bank report also indicated that 22 percent of household consumption was financed via cash withdrawals at ATMs, compared to 11 percent by EFT/POS and 25 percent by credit card -- meaning plastic accounted for almost 58 percent of total household spending.

Credit card spending has been rising quickly, with the number of credit card transactions increasing by more than 24 percent a year for the past five years. Australians are now the third-biggest credit card users in the world, behind the United States and New Zealand.

Australian families now owe more than they earn. On average, households owe $1.29 for every $1 of earnings.

According to a report in The Age, Reserve Bank governor Ian Macfarlane warned that the record debt levels could leave the economy open to economic shocks, particularly if the unemployment rate increases sharply.