Our Aussie Chapter

Opening an Australian bank account is usually one of the first practical things to do after moving.

You may need it to receive your salary, pay rent, set up bills and manage everyday expenses.

Fortunately, the process is usually straightforward once you know what documents to prepare and what to compare.

1. Start with an everyday transaction account

Most people begin with a transaction account, sometimes called an everyday account.

You can use it for:

• receiving salary
• paying bills
• shopping
• withdrawing cash
• transferring money
• using a debit card

You may also open a separate savings account later if you want to earn interest on money you are not using every day.

2. Compare a few different banks

Australia’s four largest banks are commonly known as the Big Four:

Commonwealth Bank (CommBank)
ANZ
Westpac
NAB

There are also other banks and digital banks, including ING and Ubank.

When comparing accounts, I would look at:

• monthly account fees
• mobile banking
• ATM and branch access
• international transaction fees
• savings options
• customer service

Check the monthly fee carefully

Monthly account fees can vary quite a lot.

For example, NAB Classic Banking currently has no monthly account fee.

CommBank Everyday Smart Access, on the other hand, normally has a $4 monthly account fee, but the fee can be waived if you meet certain conditions, such as depositing at least $2,000 per month or being under 30.

This is worth checking before opening an account, especially if you are newly arrived and may not yet have a regular salary going into the account.

3. Some banks let you start before arriving

Depending on the bank, eligible migrants or international students may be able to start opening an account shortly before arriving in Australia.

Other banks may require you to already be in Australia and have a local address or mobile number.

If you want to organise banking before your flight, check the bank’s current newcomer requirements first.

4. Prepare your identification

Banks need to verify your identity.

Newcomers may be asked for some combination of:

• passport
• visa details
• Australian address
• Australian mobile number
• tax identification details
• additional identification documents

If your documents are not in English, the bank may also require an accredited translation.

Your passport is usually the most important document to have ready.

5. TFN and tax residency

You may be asked which countries you are a tax resident of and for your Tax Identification Number.

You can generally start the bank-account process before receiving an Australian Tax File Number (TFN).

However, once you receive your TFN, it is worth providing it to your bank because tax may otherwise be withheld from interest at a higher rate.

For newcomers, I would put these two tasks near the top of the list:

Open a bank account

and

Apply for a TFN

6. Learn the basics: debit cards, BSB and PayID

Most everyday accounts come with a debit card, which uses money directly from your bank account.

You can usually use it for tap payments, online shopping, ATMs and digital wallets such as Apple Pay or Google Pay.

You will also see two important banking terms:

BSB — identifies the bank or processing location
Account number — identifies your individual account

Employers normally ask for both when setting up salary payments.

Another useful Australian banking feature is PayID.

If someone has registered their mobile number or email address as a PayID, you can transfer money to them without needing their BSB and account number.

It is very common for friends to simply say:

“PayID me.”

7. Check for welcome or referral offers

Some banks occasionally offer new-customer cashback or Refer a Friend bonuses.

ING and Ubank, for example, run referral campaigns from time to time, while major banks may also offer limited-time welcome promotions.

These offers can be useful, but they change frequently.

I would not choose a bank just because of a one-off bonus. Compare the ongoing fees, app, services and convenience first.

→ Australian Bank Sign-Up Bonuses: Which Banks Offer Cash Rewards?

8. Be careful when transferring money from overseas

If you are moving savings into Australia, compare the total cost rather than looking only at the transfer fee.

Check:

• exchange rate
• transfer fee
• receiving-bank charges
• intermediary-bank charges
• transfer limits

A service advertising a $0 transfer fee may still provide a less favourable exchange rate.

For larger transfers, even a small exchange-rate difference can make a significant difference.

9. Watch out for banking scams

New arrivals can be attractive targets for scammers.

Be cautious if someone asks you to:

• click an urgent banking link
• reveal your password
• provide a security code
• transfer money to a “safe account”
• give remote access to your device

If you are unsure, stop the conversation and contact your bank through its official app, website or verified phone number.

Which bank should you choose?

There is no single best bank for every newcomer.

Before choosing, ask:

Is there a monthly fee?

Is the banking app easy to use?

Do I need branch access?

What are the international transaction fees?

Does it include a debit card?

Are there any current newcomer or referral offers?

For your first account, convenience and low ongoing fees are usually more important than finding the perfect bank.

You can always open another account later.

Final Thoughts

Opening a bank account in Australia is generally straightforward once you have your documents ready.

For most newcomers, I would prepare:

Passport

Visa details

Australian address if available

Mobile number

Tax-residency information

Then compare a few everyday accounts before deciding.

It is worth paying particular attention to monthly fees, because some accounts are permanently fee-free while others only waive the fee when certain conditions are met.

Once your bank account and debit card are working, many other parts of settling into Australia — salary, rent, utilities and everyday payments — become much easier.

If you are preparing for your move, you may also find these useful:

→ 10 Things I Wish I Knew Before Moving to Australia

→ Renting in Australia: What Newcomers Need to Know Before Applying

→ Moving to Brisbane: What You Should Know Before You Arrive

Note

This article provides general information only and does not constitute financial or tax advice. Bank fees, eligibility requirements, account features and promotional offers can change. Always check the bank’s official information before opening an account.

Image Credit: Jonathan Cooper@Unsplash