Banking in Australia for New Residents: A Complete Guide

Opening Your First Australian Bank Account

If you have recently arrived in Australia — whether on a work visa, student visa, or as a permanent resident — one of the first things you will need to do is open a local bank account. An Australian bank account is essential for receiving wages, paying rent, and managing everyday expenses.

The good news is that Australia's banking system is straightforward, and most major banks allow you to begin the application process online before you even arrive. The four largest banks, Commonwealth Bank (CBA), Westpac, ANZ, and National Australia Bank (NAB), all offer accounts specifically designed for new arrivals.

What You Need to Open an Account

If you apply within the first six weeks of arriving in Australia, identification requirements are simplified under the country's anti-money laundering rules. You will typically need:

• A valid passport
• Your visa details (grant number or visa label)
• An Australian address (a temporary address is usually acceptable)

After the six-week window, banks apply standard 100-point identification checks and you may need additional documents such as an Australian driver's licence, Medicare card, or utility bill.

Choosing a Bank

When selecting a bank, consider the following:

• Branch and ATM access. If you live in a regional area, CBA and NAB tend to have the widest branch networks. In cities, all four major banks are well represented.
• International transfer fees. If you will be sending money home regularly, compare the exchange rates and fees each bank charges for outbound international transfers.
• Digital banking. All major Australian banks offer full-featured mobile apps. Some digital-only banks like Up, ING, and Macquarie offer no-fee accounts with competitive interest rates.
• Joint accounts. If you are arriving with a partner, most banks allow you to open a joint account where both parties have full access.

Understanding BSB Numbers

Once your account is open, you will be assigned two key numbers: a BSB number and an account number. Together, these identify your specific account within the Australian banking system.

The BSB (Bank-State-Branch) number is a six-digit code in the format XXX-XXX. The first two digits identify your bank, the third digit typically indicates the state, and the last three identify the specific branch. For example, a BSB starting with 06 belongs to Commonwealth Bank, while 03 indicates Westpac.

Your account number is a separate number, usually between six and ten digits, that identifies your individual account within that branch.

You will need both numbers whenever someone sends you money domestically, when you set up direct debits for bills, or when your employer needs your payment details.

Where to Find Your BSB

Your BSB number can be found in several places:

• Mobile banking app — usually on the account details or summary screen
• Internet banking — in your account settings or transaction details
• Bank statements — printed at the top of each statement
• Your bank card — some debit cards display the BSB on the front or back
• In branch — any teller can provide it on request

If you know your bank and branch but cannot access any of these, you can look up the BSB using the BSBFinder search tool.

BSB vs. International Banking Codes

If you are used to banking in another country, the BSB system may seem unfamiliar. Here is how it compares:

The BSB is closest in concept to the UK sort code — both identify a specific bank branch and are used alongside an account number for domestic transfers.

Making Domestic Transfers

To send money to another Australian bank account, you will need the recipient's BSB number and account number. Transfers between Australian banks are processed through one of two systems:

• Direct Entry (BECS) — the traditional batch-processing system. Transfers typically settle within one to two business days.
• OSKO / NPP — the real-time payments platform. Most transfers between NPP-enabled banks arrive within seconds, including on weekends and public holidays.

Most banking apps will automatically use the fastest available method. When you initiate a transfer, the app will usually show whether it will arrive instantly or take one to two days.

PayID: An Alternative to BSB

Australia also has PayID, a system that lets people send you money using your phone number or email address instead of your BSB and account number. You can register a PayID through your banking app.

PayID is convenient for receiving money from friends or for one-off payments, but BSB and account numbers are still required for:

• Employer payroll setup
• Direct debits (rent, utilities, subscriptions)
• Government payments (tax refunds, Centrelink)
• International incoming transfers

Receiving Money from Overseas

If family or an employer overseas needs to send money to your Australian account, they will need:

1. Your full name as it appears on the account
2. Your BSB number and account number
3. Your bank's SWIFT/BIC code (an 8 or 11 character code identifying the bank internationally)
4. Your bank's address (sometimes required by the sender's bank)

You can find your bank's SWIFT code using the SWIFT lookup tool on this site.

International transfers typically take two to five business days and may incur fees on both the sending and receiving end. Your bank may also apply an exchange rate margin when converting the funds to Australian dollars.

Reducing International Transfer Costs

Bank-to-bank international transfers (wire transfers) are often the most expensive option due to intermediary bank fees and unfavourable exchange rates. Alternatives worth considering:

• Wise (formerly TransferWise) — uses mid-market exchange rates with transparent fees
• OFX — competitive rates for larger transfers
• Revolut — offers multi-currency accounts with fee-free transfers up to certain limits

Compare the total cost (fees plus exchange rate) rather than just the headline fee, as the exchange rate markup is often where banks make the most money.

Essential Banking Tasks for New Residents

Once your account is set up, there are several things you should do in the first few weeks:

Set Up Your Tax File Number (TFN)

Provide your Tax File Number to your bank. Without it, the bank is required to withhold tax at the highest marginal rate (currently 47%) on any interest your account earns. You can apply for a TFN through the Australian Taxation Office once you have a valid visa.

Register for PayID

Link your mobile number or email to your bank account via PayID. This makes it easier for employers, friends, and services to pay you without needing to share your full BSB and account details.

Enable Transaction Notifications

Turn on push notifications for transactions in your banking app. This helps you monitor spending and quickly detect any unauthorised transactions.

Understand Account Fees

Some accounts charge monthly fees that are waived if you deposit a minimum amount each month (typically $2,000). Make sure you understand the fee structure and whether your regular income will meet the waiver threshold.

Common Questions

Can I open an account before arriving in Australia?

Yes. All four major banks allow you to start the application online from overseas. You will need to visit a branch to verify your identity within a set period (usually 30 days) after arriving.

Do I need a separate account for savings?

It is not required, but most Australians maintain a separate savings account to earn higher interest. Many banks offer linked savings accounts that you can open instantly through their app.

What happens to my account if I leave Australia?

Your account remains open and accessible. You can continue to use internet banking from overseas. However, if the account becomes dormant (no transactions for an extended period), the bank may eventually transfer the balance to the Australian Securities and Investments Commission (ASIC) as unclaimed money.

Is my money safe in an Australian bank?

Yes. The Australian Government guarantees deposits up to $250,000 per person, per institution under the Financial Claims Scheme. This covers all authorised deposit-taking institutions (ADIs), including the major banks, credit unions, and building societies.