It's hoped the savings from the reduction will be passed onto consumers.
A Government levy on credit unions is being cut by more than half.
The state will take in €5m from the sector in 2021, down from €12m this year.
The Irish League of Credit Unions says the move will go a long way to alleviating the impact of the pandemic on their balance sheet.
Minister of State with responsibility for the sector and Laois/Offaly TD Sean Fleming wants them to take this saving back to the consumer: