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Banking in Australia

  • Overview of Banking
  • Opening a Bank Account
  • Credit Cards & Home Loans

  • Australian Banks
  • Other Resources
  • Banking Terminology

  • Disclaimer

Overview of Banking

This section gives a basic overview of the Australian banking system and provides links to banks and internet sites where you can get more detailed information. Please read our disclaimer statement.

The Banking System

Australia has an advanced banking system, with various types of institution: large, Australia-wide banks, smaller state-specific banks, a number of credit societies/credit unions and a few other financial organisations, such as insurance companies who have diversified into banking.

Typical Facilities

Obviously each bank will offer their own mix of accounts and facilities, but here is a list of typical facilities offered:
  • Transaction Account for day-to-day transactions. Usually zero or very low interest paid for credit balances.
  • Savings Account which can be "at call" (ie. no notice required to withdraw funds), or a fixed notice period for withdrawel or a term deposit (fixed interest rate, fixed term).
  • ATMs (automatic teller machines) - are located at most shopping centres. Usually free if you use a machine linked to your bank's network, otherwise a fee can be charged.
  • EFTPOS (electronic funds transfer at point of sale) - ie. paying for goods using your bankcard. Most banks and retail outlets offer this facility and the funds may be taken from your current, savings or credit account. The larger retailers normally let you draw extra cash out as well, with no charge.
  • Credit Cards Mastercard, Visa and American Express cards are commonly available, with a variety of features, such as zero annual fee, so many days interest-free, rewards points etc.
  • Internet Banking is now offered by most banks, enabling you to check balances, transfer money between accounts, pay bills (BPAY system) and so on
  • Telephone Banking

Fees and charges

It is common for there to be a monthly fee on transaction/cheque accounts, with a certain number of free transactions per month. There are many variations, though, such as zero monthly fee if a certain balance is maintained.

You may incur charges if you withdraw cash from an ATM outside of your bank's network and of course, you will normally be charged for overdrafts or other transactions like bank cheques.

Government taxes: If you've heard of something called FID (Financial Institutions Duty) and BAD (Bank Account Debit) tax, don't worry because they've been abolished.

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Opening a Bank Account

Information in this section provided by our sponsors, Westpac Banking Corporation.

Before You Leave Home

Migrants can open an Australian bank account before leaving their home country - Westpac have established a Migrant Banking section dedicated to serving the needs of new migrants.

They offer a transaction account ("Westpac Choice") and a high interest savings account ("Max-i Direct"), so if you choose, you can transfer funds before your move and have them earning interest. Note, however, that you will not normally be able to access the funds until you arrive in Australia and complete formalities in person at the bank.

You can download an application form at the Westpac website and fax or mail it back to them. If you know where you'll be living in Australia, you can choose to open your account at the local branch, or you can open it at the central branch in your destination city.

When you arrive

Within six weeks of arrival in Australia, you need to go into the branch where your account has been opened and identify yourself - take your passport. If you're staying in short-term accommodation, you can give this as your contact address, but you don't need to provide any further proof of address. You will then be issued with your bank cards and can be registered for telephone and internet banking. If you have your Tax File Number, give this to the bank so that your interest is paid without tax being deducted.

To find out more...

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Credit Cards & Home Loans

Information in this section provided by our sponsors, Westpac Banking Corporation.

Depending on your visa and employment status we may be able to help you apply for a credit card and mortgage before your arrival.

You can apply for a credit card or home loan before coming to Australia if you can provide the following:

  1. An Australian Visa allowing you to stay in Australia:
    1. Permanently and you have documents proving an ongoing source of income, or
    2. Temporarily as a skilled migrant and where you already have an offer of employment, or
    3. Temporarily as a provisional business migrant sponsored by any of the states or Territories and you can show evidence of income either from business, investments etc

  2. An Australian address where you will be staying (your home, rental home or your relatives or friends' home) or an Australian address of your employer who has consented to you using their address. (PO Boxes are not acceptable).

If you don't have a job offer/ source of income yet but are likely to get one soon after your arrival you can apply for a credit card or home loan straightaway by going into a branch and mentioning that you are a migrant customer. This is because you usually require 6 months credit history in Australia before being considered. The Migrant banking team however can assist in pushing through your application if you can't meet this criteria. (Unfortunately we can't use your English credit history)

To find out more...

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Australian Banks

 

Australia-Wide Banks - "The Big Four"

Westpac Banking Corporation

National Australia Bank

ANZ Bank

Commonwealth Bank

 

State-Specific and Other Banks

St. George Bank (mainly NSW,VIC,SA)

HSBC

BankWest (WA)

Bank of Queensland (mainly QLD with some branches in NSW and VIC)

Suncorp (QLD)

Citibank

Home Building Society (WA)

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Other Resources

Infochoice has a comparison of current mortgage and deposit rates.

MoneyManager has more information on banks and comparison of fees and charges etc.

www.choice.com.au run by the Australian Consumers Association has several articles comparing different accounts and banks. Follow Money & Rights > Banking.

Australian Credit Unions Website. A resource explaining what Australian Credit Unions are all about with links to the individual organisations.

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Banking Terminology

ATM
Automated Teller Machine - the "hole in the wall"/Cashpoint.

BSB
Bank State Branch number. Equivalent to a UK bank's sort code, it's a 6-digit number, usually written in two parts, eg. 736-000.

Offset Facility
A facility allowing use to offset part of the interest due on your loan account by using interest you would be earning on your savings account.

Term Deposit
A savings bank account, whereby your money is put on deposit for a fixed term at a fixed rate of interest. Typical terms are 1-6 months, 1 year, etc.

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Disclaimer

Information on this website is intended to give the reader an overview of many aspects of life in Australia, such as healthcare, real estate, tax, superannuation etc.

While we at Aussiemove.com have performed a large amount of research on each subject area, we do not claim to be experts in those fields and we recommend that migrants discuss their requirements with companies specialising in those fields before making purchases, investments or other decisions concerning their move.

The content of this website is general in nature - no specific advice is intended.

We provide links to other companies as a service to our readers. We have taken reasonable care to ensure that each linked website does not contain offensive or inappropriate material. However, we are not responsible for the accuracy of any of the material in any linked website, or the advice that may be contained therein.

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