How to Open a Bank Account in Australia: Step-by-Step Guide for New Arrivals

How to Open a Bank Account in Australia: Step-by-Step Guide for New Arrivals

Opening a bank account is one of the first things you should do when you arrive in Australia — and there's a very specific reason to do it quickly. Within your first 6 weeks in the country, you can open an account with just your passport. After that 6-week window closes, you'll need 100 points of identification, which is significantly harder for someone who's just arrived and hasn't yet accumulated Australian documents. Miss that window and you'll be dealing with unnecessary headaches at exactly the time you don't need them.

The 6-Week Rule: Why Timing Matters

Australian anti-money-laundering regulations require banks to verify your identity before opening an account. The rules are more lenient for recent arrivals:

The 100 Points of ID System

If you miss the 6-week window, here's what you'll need:

With just a passport (70 points), you're 30 points short. You'd need a Medicare card (25 points) plus something else — and getting a Medicare card requires being eligible, which many temporary visa holders aren't. See our Medicare guide for eligibility details.

Bottom line: Open your account within 6 weeks. Period.

Australia's Big 4 Banks

Four banks dominate Australian retail banking. Each has extensive branch and ATM networks across the country:

Bank Comparison

All four banks have eliminated monthly account fees on their basic everyday transaction accounts. There's no minimum balance required at most banks. You won't be penalised for having $0 in your account.

Which Bank Should You Choose?

Honestly? For a new arrival, any of the Big 4 will serve you well. The differences are marginal. That said:

• Commonwealth Bank has the largest branch and ATM network and arguably the best mobile banking app. It's the most popular choice among new arrivals.
• NAB doesn't charge fees for international ATM withdrawals — useful if you're moving money between countries.
• ANZ has strong connections across Asia-Pacific, which can be advantageous if you're transferring money to or from Asian countries.
• Westpac offers similar services to CBA with slightly fewer branches.

If you're a student, all four offer student-specific accounts with additional benefits. Check the student visa requirements for financial obligations tied to studying in Australia.

How to Open an Account: Step by Step

Option 1: Open Online Before You Arrive

Several Australian banks allow you to start the account opening process online from overseas. You can't fully activate the account until you arrive (you'll need to verify your identity in a branch), but having the process started saves time.

Banks that support pre-arrival applications:

• Commonwealth Bank (via the CommBank app)
• NAB (online application)
• ANZ (Migrant Banking program)
• Westpac (online application for eligible countries)

What you'll need for online application:

1. Valid passport details
2. Australian address (can be temporary accommodation)
3. Email address
4. Phone number (Australian mobile preferred but not always required)
5. Visa details

The bank will set up your account and post a debit card to your Australian address. You'll then need to visit a branch within 6 weeks of arrival to verify your identity and fully activate the account.

Option 2: Walk Into a Branch After Arrival

If you didn't apply online, simply walk into any branch of your chosen bank with your passport within 6 weeks of arrival. The process takes about 30-45 minutes.

Bring with you:

1. Valid passport
2. Proof of Australian address (even temporary — a hotel booking or Airbnb confirmation works)
3. Your visa details (grant number or visa label in passport)
4. A phone number (Australian SIM recommended)

What happens in the branch:

1. You'll fill out an application form (or the staff will do it with you)
2. Your identity is verified against your passport
3. You choose your account type (everyday transaction + savings is standard)
4. You receive account details immediately
5. A debit card is issued — either on the spot or posted to your address within 5-7 business days
6. You download the mobile banking app and set up digital access

Account Types You'll Need

Most new arrivals set up two accounts:

1. Everyday Transaction Account

• Used for daily spending, receiving salary, paying rent
• Linked to a debit card and Apple Pay/Google Pay
• No fees, no minimum balance
• Unlimited transactions

2. Savings Account

• Higher interest rate (currently 4.5-5.5% at most Big 4 banks on bonus saver accounts)
• Used for storing savings you don't need immediate access to
• Bonus interest usually requires monthly deposits and no withdrawals
• No fees

Some banks also offer term deposits (fixed interest for a set period) and offset accounts (linked to a home loan to reduce interest). You won't need these immediately, but they're available as your financial situation develops.

Contactless Payments and Digital Banking

Australia is one of the most cashless societies in the world. You can pay for almost everything — from groceries to public transport to market stalls — using contactless (tap-and-go) payment via:

• Debit card: Tap your card at any terminal
• Phone: Apple Pay, Google Pay, or Samsung Pay linked to your bank account
• Smartwatch: Apple Watch, Galaxy Watch, and others support contactless payments

Many Australians rarely carry cash. Some businesses have gone completely cashless. Your bank-issued debit card will work at virtually all retailers from day one.

Mobile Banking Features

All Big 4 banks offer feature-rich mobile apps that allow you to:

• Transfer money between accounts instantly
• Pay bills (BPAY system)
• Split bills with friends (PayID or Osko for instant transfers)
• Set up direct debits for rent and utilities
• Lock and unlock your card
• Track spending by category
• Deposit cheques by photo (rare — cheques are almost extinct in Australia)

Your Tax File Number and Banking

When you open a bank account, the bank will ask for your Tax File Number (TFN). You probably won't have one yet — that's fine. You have 28 days to provide it.

Why does it matter? If you don't provide your TFN to the bank, they're legally required to withhold tax at the highest marginal rate (45%) on any interest you earn. For a savings account earning 5% interest on $10,000, that's the difference between keeping roughly $500 in interest or losing $225 of it to unnecessary tax.

Apply for your TFN as soon as you arrive — see our complete TFN guide for instructions. Once you receive it, update your bank account either through the app or by calling the bank.

Multi-Currency Accounts

If you're regularly moving money between Australia and your home country, a multi-currency account can save significant fees. These accounts let you hold balances in multiple currencies (AUD, USD, GBP, EUR, etc.) and convert between them at competitive rates.

Options for Multi-Currency Banking

For regular international transfers (sending money home, receiving funds from family), Wise typically offers the best exchange rates and lowest fees — significantly cheaper than the Big 4 banks' international transfer services. You can open a Wise account alongside your Australian bank account and transfer between them instantly using PayID.

Banking Fees to Watch For

While everyday accounts are fee-free, watch out for these charges:

Transferring Money to Australia

Bringing your savings to Australia? Here's how the main methods compare:

If you're bringing more than AUD $10,000 in cash (or foreign currency equivalent) into Australia, you must declare it at customs. There's no tax on the money itself, but failing to declare it can result in seizure and penalties.

Superannuation: Your Retirement Savings

When you start working in Australia, your employer is legally required to pay 11.5% of your salary into a superannuation (retirement) fund on top of your regular wages. This is mandatory — it's not optional for you or your employer.

You'll need to either:

• Choose a super fund and provide details to your employer, or
• Be assigned to your employer's default fund

If you leave Australia permanently on a temporary visa, you can claim your superannuation as a departing Australia superannuation payment (DASP). Be aware that this is taxed at 35-65%, so it's worth understanding the rules before you go. This doesn't apply to citizens of countries with bilateral social security agreements.

Common Banking Questions for New Arrivals

Can I use my foreign bank cards in Australia? Yes. Visa and Mastercard debit/credit cards work at Australian ATMs and retailers. However, you'll be charged currency conversion fees (typically 2-3%) and your home bank may charge international transaction fees. Get an Australian account as quickly as possible to avoid these costs.

Is online banking safe in Australia? Extremely. Australian banks use multi-factor authentication, biometric login (fingerprint/face recognition), and advanced fraud detection. Follow standard security practices — don't share your login details, use unique passwords, and enable all available security features.

Can I get a credit card as a new migrant? Not immediately. Most banks require 3-6 months of Australian income history before approving a credit card. Start with a debit card, build your banking history, and apply later if needed. Some banks offer secured credit cards (backed by a term deposit) as an alternative for newcomers.

Tips for New Arrivals

1. Open your account within 6 weeks — this cannot be overstated
2. Download the mobile app immediately — it's how you'll manage all your banking
3. Set up PayID — link your phone number or email to your bank account for instant transfers
4. Use Wise for international transfers — Big 4 bank rates are poor for forex
5. Provide your TFN within 28 days — avoid having interest taxed at 45%
6. Set up direct debits for rent — landlords and agents prefer automatic payments
7. Keep your visa documentation handy — visa status affects some banking products

Frequently Asked Questions

Can I open an Australian bank account before I arrive?

Yes. Commonwealth Bank, NAB, ANZ, and Westpac all allow you to start the application process online from overseas. Your account will be created but not fully activated until you visit a branch in Australia with your passport. You can receive your debit card at your Australian address and start using the account as soon as you verify your ID in person.

What happens if I miss the 6-week window?

You'll need to provide 100 points of identification instead of just your passport. A passport gives you 70 points, so you'll need an additional 30 points from documents like a Medicare card (25 points), Australian bank statement (25 points), or foreign driver licence with certified translation (25 points). It's doable but more complicated — don't let it come to this.

Do Australian banks charge monthly fees?

The Big 4 banks have all eliminated monthly fees on their basic everyday transaction accounts. There's no minimum balance requirement. You may encounter fees for specific services (international transfers, replacement cards), but day-to-day banking is free.

How long does it take to receive a debit card?

Some branches can issue a card on the spot. Otherwise, expect delivery within 5-10 business days. In the meantime, you can add your new account to Apple Pay, Google Pay, or Samsung Pay through the bank's mobile app and use your phone for contactless payments immediately.

Can I send money overseas from my Australian bank account?

Yes, but using your Big 4 bank's international transfer service is expensive — expect fees of $20-$30 per transfer plus unfavourable exchange rates. Services like Wise, OFX, or Revolut offer much better rates and lower fees. For a $5,000 transfer, the difference can be $100-$200 in savings by using a specialist service instead of your bank.