How to Open a Bank Account or Savings in Australia
If you’re wondering how to open a new Australian banking account for yourself or someone else who isn’t a resident, read on! It’s easy to set up an Australian banking account.
Are there any banks in Australia where I can open an account?
Yes. Most Australian banks make it relatively easy and understandable for foreign residents to establish an online banking service. You can even apply for a credit card through your local branch without visiting the extension personally.
The Most Common Bank Accounts in Australia
- Everyday Transaction Accounts: Used for day-to-day transactions, daily withdrawals, and deposits.
- With a high-interest rate, saving accounts offer an attractive way to save money.
- Like in other countries, credit card accounts let you access funds that aren’t immediately available.
- Foreign Currency Accounts: Larger financial institutions may offer them for those still earning income in another currency.
- Joint accounts: Used for creating an account with a spouse or business partner.
- A term deposit is similar to a savings account, but your money is locked in for a set length of timespan.
It may not be easy to open a new banking relationship when moving abroad, but some banks will offer you a chance to get a new card if you live outside your country of residence. Those cards are called “international” cards and usually come with better rewards than domestic ones.
- Commonwealth Bank (CommBank);
- National Australia Bank (NAB);
- ANZ Bank;
Requirements you need to have to Open a Bank Account as one of the Non-Resident.
Banks in Australia require individuals to provide at least 100 different pieces of identification before they can open an online banking service.
You can set up an Australian bank account online if you’re not living in Australia yet. Some of the central banks in Australia (listed below) allow foreign residents to set up an account online before they move here.
Required documents to open an account at a bank.
- When you plan on leaving for Australia.
- Where will you be living in
- With which visa will you enter Australia
- Details of employment and salary
- Proof of Identity
- One hundred points worth of documentation when you get there.
You can typically start an online savings account within three to twelve months (s) before your arrival date. Most financial institutions require you to be eighteen (18) years old or older. Some may also require you to be at least twenty-one (21) years old. The entire application process should only last about five to ten minutes.
If you wait until after you arrive in Australia before opening an Australian bank account, you don’t need to go through the 100-point visa application process. Instead, you need your passport.
Banks charge fees for using their services and require minimum deposits before
Australian banks don’t usually charge monthly fees for their no-fee bank accounts. However, if they do, they’re deficient and often waived, provided a certain amount is put into the account daily. Typically, this is set at $2,000 per year.
Fees you’ll need to be aware of include ATM withdrawal fees. With more than 29 thousand ATMs spread throughout the country, you should be able to get cash when required. You can also earn money from your local branch, but you’ll pay about 1 dollar per withdrawal. If you take money from an ATM belonging to another financial institution, you’ll be hit with a fee of between 2 and 3 dollars per withdrawal.
You might also consider asking about other rates and fees, currency conversion, or international transfer fees before deciding which bank to use.
Top Banks in Australia
The three biggest banks are:
- ANZ Bank;
International Banks in Australia
There are several foreign subsidiaries of foreign banking institutions operating in Australia. Examples include HSBC Bank, BNP Paribas, CitiBank, Bank of China, RBC Royal Bank, and Westpac Banking Corporation. Find out which foreign bank operates in Australia here.
Australia’s Best Online Banks
Today, most Australian banks offer online banking options so you can access your account anywhere at any time. Some of Australia’s internet-only banks are Westpac, ANZ Bank, NAB, Bendigo Bank, Macquarie Bank, St George Bank, Suncorp, CBA, and National.
- ING offers everyday transactions and savings accounts, short- and long-term deposits, commercial mortgages, home loans, SMSFs, and personal retirement savings.
- ME Bank offers to check and savings account services, including term deposit products, credit card services, personal and home loan products, and business savings account and term deposit products.
- UBank offers personal and business banking services, including saving accounts, combined account packages, mortgages, and SMSFs.
- Rabobank Direct — high-interest savings, regular savings, notice savings, term deposit, and SMSF (self-managed super fund)
- Easy Street—everyday transactions, online saving accounts, personal loans, various types of mortgages, and life insurance.
What is the Tax System in Australia?
The Australian tax structure consists of both direct and indirect taxation. It depends on whether the tax is levied at the federal or state levels.
There are three types of taxes in Australia: income tax,
Taxes in Australia are based on two main types: personal and corporate. Personal taxes are levied against individuals’ incomes, including salaries, wages, capital gains, and investment returns. Corporate taxes are imposed on businesses, corporations, trusts, and partnerships. The ATO, an independent agency of the Commonwealth Government, collects income taxes. The federal government levies a Goods and Services (GST) on goods and services sold within Australia. A GST rate of 10 percent applies to most items and services, except for basic foodstuffs such as bread, milk, eggs, and fresh fruit. Other exceptions apply to certain prescription drugs, medical devices, and school uniforms.
The Australian Government is developing a new taxation system to help reduce the burden on individuals and small business owners. One of the main changes being considered is an increase in the threshold for the lowest level of taxable income. The lowest taxable earnings level is $18,200 per year ($9,400 for single people). However, this will rise to $37,000 ($19,500 for single people) by 2024-25. At present, only about one-third of Australians pay any income taxes. However, if the proposed changes go ahead, half of Australians will be paying income taxes by 2024-25.
To help people and small business owners, the Australian Government will also set up 10 new “one-stop shop” offices where they can get free professional assistance from accountants, lawyers, and financial planners. They will also be able to pay their bills online using the Government’s electronic invoices system. It is estimated to cost taxpayers AUD 28 billion (USD 19 billion).
Deductibles in Australia
Deductible expenses in Australia include vehicle and travel costs, clothes, washing, dry cleaning, home office, phones, managing your taxes, gifts and charitable giving, and so on.
What is income tax in Australia?
In Australia, if an individual becomes a permanent or long-term resident of Australia, they are taxed on any earnings made within Australia. They may also be liable to pay taxes on foreign earnings. However, a temporary visa holder is not taxable until they have resided in Australia for six months. Once they have met these requirements, they can apply for a refund of any previous taxes paid.
You can use our services to register with local authorities. In addition, we help you find professional advisers who can assist you with everything from setting up bank accounts to arranging for health insurance.
For individuals, Australian income taxes are progressive and based on a tiered system. The more you earn, or wages receive, the higher your marginal rate of taxation. The current income taxes for residents and non-resident taxpayers are as follows.
Income tax bracket (AUD): 0 – 18,200; 20% – 12,500; 30% – 37,000; 40
Income tax bracket (AUD): 0 – 90,000; income tax bracket (USD): $60,8
An employer usually pays employees payroll tax (or social security). It is taken from their wages before they receive them. Then, the Government hands over the money to the Social Security Administration.
Taxation for self-employed people in Australia
Self-employed people, sole traders, or partners don’t need to pay SGs. But they’re encouraged to contribute to their pension scheme.
Superannuation allows you to save for retirement without paying any taxes on the interest earned from your contributions. It gives you access to your money when needed but doesn’t allow you to touch it before.
For Business Owners
It is essential for business owners to keep track of their receipts and work-related expenditures. A tax professional can assist you in figuring out your deductions and what you can write off.
Taxes affect business in Australia. They’re imposed by the Government and include Income Tax, CGT, and GST.
Australian businesses are taxed at different rates depending on their size. For example, small and medium businesses pay a lower rate of 27.5%, whereas large companies pay a higher rate of 32.5%.
- 26%—2020/21 income year
- 20%—2020/2021 and earlier income year
You can pay taxes either monthly, quarterly, or yearly.
You must file your income taxes by the deadline every year, which are usually due between April 15 and June 30 for the previous calendar year. If you don’t pay enough taxes, you may be sent a bill; if you owe too much, you might receive a refund.
Frequently Asked Questions when Banking in Australia:
What principal types of bank accounts are there?
Australian bank accounts typically fall into transaction accounts and savings reports.
The account you use to manage your daily banking activities is referred to as a transaction or everyday arrangement in Australia (you may also know this type of account as a checking account or current account). Transaction accounts are made to give you quick access to your money. If you transfer money into one of these accounts regularly or are employed, your employer will probably deposit your paychecks there. You can manage your expenses and handle your daily spending through this account.
Savings accounts, as their name implies, are made to help you save or manage your savings. Some savings accounts will also give you bonus interest if you meet specific criteria, such as making a minimum monthly deposit.
How can a bank account be opened in Australia?
When you get to Australia, you can use Westpac’s website to open a regular bank account and transfer money immediately. However, before you can access your new account, you must verify your ID at one of our nearby branches.
What are the forms of identification necessary to open an account?
Upon arrival in Australia, you will need to undergo an identity check before making withdrawals from your Australian bank account. You must bring the following items to verify your identity if your account is with Westpac, and you do so within the first six weeks of arriving in Australia.
- Your passport and residential address in Australia
- A valid visa and documentation proving your recent arrival in Australia.
- Anytime the wait exceeds six weeks, you must present at least two pieces of identification, such as a passport, driver’s license, or birth certificate.
You can save time by having your identity checked online when you open a Westpac Choice account while already residing in Australia. All you need are two of the following documents.
- Passport, either international or Australian.
- Australian Driver’s License.
- Medicare Card.
How do you get money out of your account?
In Australia, most regular bank accounts come with a debit card that can be used for ATM withdrawals and in-person and online shopping. However, wearable technology or a mobile banking app to withdraw cash from ATMs without using your debit card has become more common thanks to the rise of contactless technology in recent years.