The Australian Bankers' Association has claimed there are already high levels of switching between financial institutions, but has committed the banking industry to working with the government to ease switching following the release of proposed legislative reforms.

Responding to the switching plan released by Treasuer Wayne Swan on the weekend, ABA chief executive Steven Munchenberg said the Fraser inquiry - which was released with the government's plan - found 8-10% of customers already switch transaction accounts.

Likewise, when it came to home loan customers, the ABA said that data on mortgage refinancing suggests customers have little difficulty in switching their home loan provider.

"ABS [Australian Bureau of Statistics] housing finance statistics have consistently shown that around 30% of new housing loan applications are applications for refinancing," Munchenberg said.

"While there's already a lot of switching going on and independent polling shows three out of four customers are satisfied with their current bank, the industry will work to bring in a simpler, easier system for customers," he said.

The government has proposed a 'tick and flick' approach to switching, which will require banks to do the legwork by arranging the reassingment of debit transactions when a customer switches institutions.