Banking and Everyday Money in Australia
Managing your money is one of the first practical steps when settling into life in Australia. From opening a bank account and understanding everyday transaction accounts, to transferring funds from overseas and learning how payments work here, it can feel unfamiliar at first.
In this section, we break down the Australian banking system in simple terms — including major banks, online banking, debit cards, contactless payments, and how to safely manage your finances. Whether you’re arriving on a visa, relocating with family, or starting fresh, this guide will help you feel confident and in control of your money from day one.
Opening a bank account should be one of your very first priorities when you arrive in Australia (or even before you get here). If you act quickly when you arrive, many banks will allow you to open an account using just your passport, without needing additional proof of address or other documents straight away. This makes it much easier to receive wages, transfer money, pay rent, and manage everyday expenses from the start.
Getting your account set up early gives you immediate financial flexibility and helps you settle in faster, with fewer complications down the track. It can also help you meet Australia’s 100 points of identification requirements for other services.
Many applications, such as utilities, phone plans, rental agreements, and certain government services, require formal ID checks. Once your bank account is established, your bank card and official statements can contribute toward those required ID points, making future applications much smoother.
It’s a small step that can make a big difference in getting everything else organised quickly and confidently.
Can I open a bank account before I get here?
Yes, you may be able to.
Commonwealth Bank will allow you to open an account in the 14 days before you arrive in Australia. Click on the logo above to go to their Moving to Australia page. You do not need an Australian address, and you can only apply in the two weeks before you arrive. This account is not available to all visa holders. Tourist visas like the 600, 601 and 651 are not eligible.
And what about when I arrive?
It is vital to have a bank account in Australia. Government benefit schemes and nearly all jobs will deposit money straight into your bank account rather than giving you cash money or cheques. You should open an account within six weeks of your arrival in Australia as the only identification document you will need is your passport. After six weeks, you will require at least two items of identification and one of them, such as a driver’s licence, must show a photograph or signature. Click here for more information
Who are the big names in banking in Australia?
Australia’s banking system is dominated by the “Big Four” major banks, each with a nationwide presence and extensive branch networks across cities and regions. Commonwealth Bank of Australia (CBA) is the largest, with around 647 branches nationwide, followed by Westpac with about 492, National Australia Bank (NAB) with around 417, and ANZ with roughly 284 physical branches as of mid-2025 — although all are continuing to reduce branch numbers as more customers bank online. These banks operate across every state and territory, servicing local and national customers, and are considered Australia-wide institutions rather than local-only banks.
Click on the logos below to learn about migrant banking at each bank.
Are there any alternatives to the big four?
In addition to the big four banks, Australia has a range of other banking choices that might suit different needs and preferences:
Customer‑owned banks (credit unions, building societies & mutuals) – These are smaller banks owned by their members rather than external shareholders. They offer similar products (accounts, loans, savings, cards) and are regulated just like other banks, but often focus more on competitive rates, member service and community support.
Examples include Bank Australia (a large customer‑owned bank), Heritage Bank (a mutual bank with branches in QLD & NSW), and People’s Choice Credit Union (now trading as Great Southern Bank) among others.
Smaller Australian banks – There are also locally based banks that are not part of the big four, like Auswide Bank, which started as a building society and operates primarily in Queensland. These banks offer full banking services but typically have smaller branch networks.
Online and digital banks – Several digital‑first banks operate in Australia under banking licences and focus on mobile/online banking without extensive physical branches. These can be good for people who prefer managing finances from an app. Examples include ING Australia, ME Bank and Up Bank.
All of these alternatives are part of Australia’s Authorised Deposit‑Taking Institutions (ADIs) framework and are covered by the same government deposit protection scheme as the major banks.
And what about sending money over?
The current Sterling to Dollars exchange rate can be found by clicking the picture to the left
Sending money to or from Australia is an important consideration when managing your finances, especially if you’re relocating from overseas. Exchange rates can fluctuate daily, so it’s worth comparing providers to get the best value. Banks, online money transfer services, and specialist remittance companies all offer different fees and transfer speeds — some may charge a flat fee, others a percentage of the amount sent.
Setting up your Australian bank account early makes it easier to receive international payments, and using services that offer competitive exchange rates can save you a significant amount over time. Always check transfer limits, fees, and delivery times so your money arrives safely and efficiently.
Some services that may offer you cheaper transfers include Wise, OFX and TorFX. Click on the logos below for more information:
Here’s a couple of articles which might help you choose an overseas partner to send your money.
Types of Payments in Australia
Australia has several modern, bank‑led payment systems designed to make sending and receiving money fast, simple and secure — many of which work differently to what people coming from the UK might be used to. Key services include:
🟢 Osko (by BPAY)
Osko lets you send and receive money instantly — 24/7, including weekends and public holidays — between participating Australian bank accounts. Transfers usually happen within seconds, with funds available immediately, making it ideal for splitting bills or paying friends. This is one of Australia’s fastest “real‑time” payment systems.
📲 PayID
A PayID is a unique identifier (like a mobile number, email address or ABN) that you link to your bank account. Rather than remembering BSB and account numbers, you can receive money simply via your PayID, and payments are routed to the right account. It works seamlessly with Osko for instant transfers.
🏦 BPAY
BPAY is a widely used bill payment system that lets you pay invoices directly from your bank account — either via online/mobile banking or by scanning a BPAY QR code. Most Australian businesses and service providers (utilities, rent, council rates, insurance, etc.) offer BPAY details on their bills.
📱 Tap‑to‑Pay / Contactless
While contactless payments exist in the UK, Australia has widespread adoption of tap‑to‑pay debit cards, mobile wallets (Apple Pay / Google Pay), and eftpos contactless terminals across nearly every retailer — often with no minimum amount. However, some retailers – particularly smaller ones – will pass on the change they incur from this kind of payment
💳 EFTPOS
Australia’s large domestic debit network (eftpos) is widely accepted and lets you pay using your debit card directly at the point of sale, sometimes with cashback. It complements Mastercard/Visa functionality and is especially common for everyday purchases.
Key Differences in Australian Banking
Here’s a few other differences that you might notice between banking in the UK and banking in Australia:
BSB Numbers
Every Australian bank account has a BSB (Bank State Branch) number in addition to the account number. The BSB identifies the bank and branch for transfers. UK accounts just use sort codes, so this is an extra number you’ll need for certain payments.
EFTPOS System
Australia has its own eftpos network for debit card payments, widely used alongside Visa/Mastercard. Many smaller businesses prefer eftpos because it has lower fees than card networks.
Cheque Use is Rare
While cheques still exist, they’re largely outdated in Australia. Most payments are electronic, via Osko, BPAY, PayID, direct debit, or card. This includes businesses – most businesses pay electronically too.
Direct Debits & Scheduled Payments
Direct debit is very common for bills — utilities, rent, insurance, memberships. Setting up a direct debit usually requires giving your BSB and account number.
Deposit Protection
Australian banks, credit unions, and building societies are covered by the Financial Claims Scheme (FCS) up to AUD 250,000 per account holder per institution, similar to the UK’s FSCS but with a clear per‑bank limit.
International Transfers & FX Fees
Domestic transfers are usually free or low-cost (especially with Osko/PayID), but international transfers can be expensive with big banks — which is why many migrants use services like Wise, OFX, or TorFX.
Branch Networks are Shrinking
Even the “Big Four” banks are reducing physical branches in favour of digital banking. This makes online/mobile banking more important than in some countries.
No Nationwide Credit Reference Sharing Like the UK
Credit reporting exists, but the system is slightly different — so utility payment history may not affect your credit score in the same way as in the UK.
Hopefully we have provided you with all the tools you need to make receiving and spending your money easy! If you have any more questions, please join the forum and ask in there!
Acknowledgement of Country
We respectfully acknowledge the Yugambeh people, the Traditional Custodians of the land on which we live, work, and build this community. We honour their Elders past, present, and emerging, and pay our respects to all First Nations people all over this amazing country.