Banking in Australia 101: Setting up and taking care of your money
It can be daunting to suddenly find yourself in a new country with no idea how to begin banking and managing your money. Luckily, we are here to help guide you through banking in Australia so that you can get started on the things that matter most—discovering this beautiful country!
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Money in Oz
Welcome to the land of dollarydoos! Australia uses the local currency of Australian Dollars (AUD), which replaced the pound in 1966, but don’t be surprised if you hear a multitude of other terms, such as ‘bucks’ or ‘bacon’.
Australia is a place like any other developed country with a system of banking and money-management programs to help you with convenient spending and money tracking. Thanks to appreciation and the strength of the local economy, the Australian Dollar exchange rate often hovers around the US dollar range but does tend to fluctuate each year.
Most stores will accept cash payments, credit cards, or debit cards with a small surcharge for credit cards.
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Setting Up a Bank Account in Australia
There are three main banks that are most commonly used by the Australian people. These are known as ‘The Big 4’ and include Commonwealth Bank, NAB, ANZ, and Westpac.
There are many other smaller banks and credit unions that offer bank accounts, deposits, transfers and more, so you should always research which banking program suits you the most.
There are a variety of interest rates and fees for different banks, so it’s important to shop around for a bank that does everything you need. The larger banks will have ATM machines throughout metropolitan areas. However, these can be tricky to find, so make sure you have adequate cash on you, especially when travelling around.
Steps:
- Visit Your Branch: The fastest way to get set up in Australia is to apply online directly with the bank of your choice. However, you may also be able to go in person to the branch or book an appointment.
- Provide documents: Most banks will ask you for personal details to set up your account. These will include your Photo ID (passport, licence, etc), visa documentation, and proof of address (copy of a bill, rental agreement, or letter from your university or employer). You may also be asked for your Tax File Number for tax purposes.
- Have a Deposit Ready: Some banks may require a token deposit to open a credit card or savings account.
- Finish Setting Up Cards: Some new cards may require a ‘setup’ that usually involves a simple tap-to-pay transaction or ATM withdrawal to activate. Some simply ask you to log in to your banking app and select the ‘activate’ option for your card.
- Setup Mobile Payments: Australia is leading the way for cardless and cashless payments. Popular apps such as Apple Pay and Google Pay, which can be used on your smartphone or smartwatch, are very popular and widely accepted in Australia.
- Set Up Banking Apps: Apps are available for most banks and make logging in to keep track of and make payments much more straightforward than having to visit a branch or ATM machine.
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Begin Banking
Once you have your new bank account and debit or credit card, it is time to get set up and get those dollars flowing!
Make sure you share your bank account with your employer, with Centrelink, or any business or government organisation that will be paying you. Wages and welfare payments in Australia are done electronically, so a bank account is a must.
A credit card is necessary for many costs, including paying road tolls, making online payments, school fees, rental payments, gym memberships, paying subscription services, and much more.
Tips & Tricks
Tips—Australian wages are set at a minimum rate for all industries and are considered to be a ‘living wage’. This means that our hospitality and customer service staff do not rely on tips as part of their regular income. You may see a tip jar with coins at the front of a restaurant or café, and you may be asked on an EFTPOS machine if you would like to leave a tip, but this is certainly not a requirement or expectation in Australia.
Cheques—Cheques, even when supplied by the bank, are not widely accepted in Australia. In fact, it is highly unlikely that you will find a store that accepts written cheques, so your best bet is to always have a credit card or cash on you for regular purchases.
Savings—Savings can also be held in special term deposit accounts, where your money is locked in for a specified period of time to accrue interest, or in high-interest savings accounts. There are a variety of options available, so it is best to research each bank and its programs. You can have as many bank accounts with as many banks as you like.
Exchanging – The Australian Dollar is currently the fifth most traded currency, particularly with the USD. There are plenty of independent businesses where you can exchange your home currency for Australian cash, including at the airport when you arrive. However, the exchange rates can vary greatly from place to place. It is recommended to speak with your bank and see what the most economical way of transferring or exchanging your money into Australian Dollars is before rushing into it.
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As far as setting up life in a new country goes, Australia offers an abundance of advice and support for international visitors and new residents. Banking and money are no different, with plenty of good options available for everyone. Once you set up your new bank account, you will have no trouble getting your cards and everything you need to set up the time of your life in this breathtaking country.
