Prime Minister Tony Abbott has joined a push to pressure banks and payment agencies to cut the cost of financial transfers.

According to a report in The Australian, Australia will support the global deal to increase the flow of money from migrants to their families in developing countries.

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For many families, these remittances serve as their main source of income.

An agreement on the issue will reportedly be reached this weekend at the G20 summit in Brisbane.

The deal would be worth $500 billion a year.

Mr Abbott’s support comes off the back of concerns from Indian Prime Minister Narendra Modi regarding the ability of migrants to provide their families with a steady stream of income.

Mr Modi has previously indicated he wants the average cost of money transfers reduced to five per cent.

The deal faces a challenge from national security laws that require banks to sever their connections with overseas payment agencies and remove remittance services.