Setting Up Banking in Australia: A Complete Guide

Setting up your banking is one of the first things you should do when moving to Australia. Ideally, you should open an account before you even board the plane. This guide covers the major banks, how to open an account from overseas or after arrival, the best ways to transfer money, and how to set up your finances including your Tax File Number and superannuation.

The Big Four banks

Australia's banking system is dominated by four major banks, collectively known as the "Big Four." They hold the majority of deposits and mortgages in the country. All four are safe, well-regulated, and insured by the government up to $250,000 per account holder per institution.

Opening an account from overseas

All four major banks let you open an account online before you arrive. This is strongly recommended because it means you can transfer money into your Australian account ahead of time and have funds available from day one. Here is the process:

1. Go to the bank's migrant page. Each bank has a dedicated section for migrants and international students. Search for "[bank name] open account from overseas" to find it.
2. Complete the online application. You will need your passport number, visa grant number or application reference, date of birth, and an overseas address. The process takes about 10 to 15 minutes.
3. Receive your account details. You will get an account number and BSB (Bank-State-Branch code, similar to a sort code or routing number) within 24 to 48 hours. You can immediately transfer money into this account.
4. Visit a branch within 12 months of arriving. Bring your passport, visa evidence, and proof of your Australian address. The bank will verify your identity, activate full account access, and issue a debit card.

Opening an account after arrival

If you did not open an account before arriving, you can do so at any bank branch. The process uses the 100-point identification check:

Important timing rule: If you open your account within 6 weeks of arriving in Australia, your passport alone is sufficient (you do not need to reach 100 points). After 6 weeks, you need the full 100 points. This is another reason to open your account as soon as you land.

Transferring money to Australia

How you transfer money makes a real difference. Bank-to-bank wire transfers are expensive. Dedicated money transfer services offer much better exchange rates and lower fees. Here is a comparison:

For a $10,000 transfer, using Wise instead of a bank wire could save you $200 to $500 in exchange rate margins and fees. For larger amounts (over $10,000), consider OFX, which offers competitive rates with no fixed fee and personal account managers for larger transfers.

Setting up your finances

Tax File Number (TFN)

Your TFN is a unique number issued by the Australian Taxation Office (ATO). You need it for employment, banking, and tax. Apply online at the ATO website as soon as you arrive. Permanent residents and citizens can apply online; temporary visa holders may need to apply at a tax office in person or by phone. Processing takes 10 to 28 business days. Once you have it, provide it to your bank (to avoid excess tax on interest) and your employer (to ensure correct tax withholding).

Superannuation (retirement savings)

Superannuation ("super") is Australia's compulsory retirement savings system. Your employer must contribute 12% of your salary (2025-26 rate) into a super fund on your behalf. You choose your super fund, or your employer will use their default fund.

Popular retail super funds include AustralianSuper (the largest, with low fees), Hostplus, and Sunsuper. Industry funds generally have lower fees than bank-owned funds. Compare funds at the government's ato.gov.au/super comparison tool.

Leaving Australia permanently? If you depart Australia on a temporary visa and do not plan to return, you may be eligible to claim your super as a Departing Australia Superannuation Payment (DASP). Note that a significant tax (35% to 65%) applies.

Tax basics

The Australian financial year runs from 1 July to 30 June. Tax returns are due by 31 October (or later if you use a registered tax agent). If you arrive mid-year, you lodge a tax return for the portion of the year you were working. Tax rates for residents range from 0% (on income up to $18,200) to 45% (on income over $190,000), plus the 2% Medicare Levy.

Credit and loans

Building credit history in a new country takes patience. Australia does not have a single credit score system like some countries, but lenders use data from credit bureaus (Equifax, Illion, Experian) to assess your creditworthiness.

• Credit cards: Difficult to get in your first 6 to 12 months without local history. Start with a low-limit card from your bank (some offer secured cards) and always pay on time.
• Personal loans: Most lenders require at least 6 months of Australian employment and banking history.
• Mortgages: Generally require permanent residency or citizenship, a 20% deposit (10% with Lender's Mortgage Insurance), and at least 6 to 12 months of Australian employment history. See our housing guide for more on buying property.
• Building credit: Get a phone plan in your name, pay all bills on time, keep a bank account in good standing, and once you get a credit card, use it lightly and pay the full balance every month.

Mobile banking and payments

Australia is one of the most cashless societies in the world. Tap-and-go payments are universal: you can tap your card, phone, or watch at virtually every shop, cafe, market stall, and even parking meter. Most Australians rarely carry cash.

• Apple Pay and Google Pay: All major banks support both platforms. Add your Australian debit card to your phone wallet and you can pay everywhere.
• Bank apps: All Big Four banks have full-featured mobile apps with instant transfers (PayID and Osko allow real-time transfers between any Australian bank accounts using a phone number or email), bill pay, card controls, and spending insights.
• PayID: Instead of sharing your BSB and account number, you can link your phone number or email as a PayID. When someone sends money to your PayID, it arrives instantly. Set this up in your banking app.

Sending money home

If you plan to send money to family overseas regularly, avoid using your bank for international transfers. The same services that work well for transferring money into Australia also work in reverse:

• Wise: Best overall for most corridors. Transparent fees, mid-market exchange rate, and fast delivery. Set up recurring transfers for regular remittances.
• Remitly: Often the fastest option, with instant delivery to some countries via mobile wallets. Slightly higher fees than Wise but very convenient.
• OFX: Best for large, one-off transfers. No fixed fee and competitive rates on amounts over $10,000. You can lock in forward contracts to protect against exchange rate movements.
• Western Union: Wide reach, especially in countries where bank transfers are less common. Higher fees than digital alternatives but useful for cash pickup.

Always compare rates on the day you send. Exchange rates fluctuate, and the cheapest service for GBP to AUD may not be the cheapest for INR to AUD. Websites like comparetransfer.com let you compare multiple services at once.