Money in Australia: Banks, ATMs, cards & currency exchange

Australia is a highly desirable destination, attracting visitors and new residents alike with its stunning natural landscapes, vibrant cities, and relaxed lifestyle.

Whether you're visiting Australia for a holiday or planning a permanent move, you'll need Australian dollars (AUD). This guide provides an overview of the Australian currency and banking system, explaining how to access and manage your money while in "Oz." We'll also introduce how Wise can help save you money on your currency exchange.

Currency in Australia

The official currency of Australia is the Australian Dollar (AUD). It's also used in several independent Pacific Island nations, such as Kiribati, Nauru, and Tuvalu.

Characteristics of the Australian Dollar

Australia was a pioneer in currency technology, being the first country to switch from paper banknotes to polymer (plastic) notes. These polymer notes are more durable, secure against counterfeiting, and waterproof. However, new notes can sometimes stick together, so be careful when counting them.

Exchanging Your Money in Australia

The Australian dollar is a major global currency and is readily available for exchange worldwide. Whether you exchange your money before you leave or after you arrive in Australia, the exchange rates shouldn't fluctuate dramatically.

Many travelers prefer to minimize the amount of cash they carry for security reasons. If you choose this approach, you can rely on credit/debit cards and ATM withdrawals upon arrival.

If you need Australian dollars immediately upon arrival, it's best to exchange only a small amount at the airport. Airport and hotel exchange rates are typically unfavorable. For a better deal, use an ATM to withdraw AUD directly, or wait until you can reach a currency exchange provider in a more competitive area (like a city center).

Before exchanging any money, understand the mid-market rate (also called the interbank rate). This is the "real" exchange rate – the one you see on Google – and it's the benchmark against which you should compare any offered rates. A convenient way to keep track of the mid-market rate is by using an online currency converter, like Wise's currency converter.

Be wary of hidden fees. Even exchange services that advertise "Zero Commission" often make their profit by offering a less favorable exchange rate. Always compare the offered rate to the mid-market rate to determine the true cost of the exchange.

If you're exchanging cash, ensure your banknotes are clean, undamaged, and in good condition. Exchange bureaus are often reluctant to accept damaged or heavily worn notes.

Using Traveller's Checks in Australia

Traveller's Checks are largely obsolete and are rarely accepted by Australian businesses. You would need to cash them at a bank, which often involves high fees and inconvenient banking hours. For most travelers, using ATMs and debit/credit cards is a far more practical and cost-effective option.

Using Credit Cards and Debit Cards in Australia

Major credit and debit cards (Visa, Mastercard, American Express) are widely accepted throughout Australia, particularly in urban areas and tourist destinations. However, it's always wise to carry some cash for smaller businesses, markets, or situations where cards might not be accepted. Use the ATM locators below to find nearby ATMs if you need to withdraw cash.

Inform your bank of your travel dates before you leave. This will help prevent your card from being blocked due to suspected fraudulent activity.

Always decline Dynamic Currency Conversion (DCC). When using your card, you might be asked if you want to be charged in your home currency. This is DCC, and it allows the merchant's bank to set the exchange rate, which is almost always worse than your own bank's rate. Always choose to be charged in the local currency (AUD).

ATMs in Australia

ATMs are plentiful in Australia, found in banks, shopping centers, convenience stores, and even pubs and restaurants. Use these locator tools to find nearby ATMs:

• Visa ATM Locator
• Mastercard ATM Locator
• Amex ATM Locator

Withdrawing cash from ATMs is often the most convenient way to access your money in Australia. Check with your home bank about their fees for international withdrawals and foreign transactions. Some banks have partnerships with Australian banks or belong to global ATM networks that may offer reduced or waived fees.

Again, always decline Dynamic Currency Conversion (DCC) at ATMs. You'll be offered the choice to be charged in your home currency or the local currency (AUD). Always choose to be charged in AUD to get the best exchange rate from your bank.

Banks in Australia

Australia has a well-developed banking system, with a mix of domestic and international banks. Many Australian banks are part of global networks, which can be advantageous if your home bank is a member. For example, Westpac has partnerships with banks like Barclays and Bank of America, potentially offering fee-free ATM withdrawals.

Before your trip, research whether your home bank has any partnerships with Australian banks to minimize ATM fees.

Australia's retail banking sector is dominated by the "Big Four" banks:

Four Major Retail Banks in Australia:

• Commonwealth Bank (CommBank)
• Westpac
• National Australia Bank (NAB)
• Australia and New Zealand Banking Group (ANZ)

International Banks Operating in Australia:

• HSBC Australia
• Citibank Australia
• ING Australia
• BNP Paribas Australia/New Zealand

Get the Best Exchange Rates in Australia with Wise

While traditional methods like ATMs and exchange bureaus are available, they can come with hidden fees and unfavorable exchange rates. For a transparent and cost-effective way to manage your money in Australia, consider Wise.

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Here's why Wise is a great option:

• Mid-Market Exchange Rate: Wise always uses the mid-market exchange rate – the same rate you usually see on Google – with no hidden markups.
• Low, Transparent Fees: Wise charges a small, upfront fee for currency conversion, which is clearly displayed before you confirm the transaction.
• Multi-Currency Account: Resident of supported countries can hold and convert multiple currencies, including AUD, within your Wise account, making it easy to manage your travel budget.
• Wise Card: The Wise card (available in supported countries) allows you to spend in AUD like a local, avoiding foreign transaction fees and dynamic currency conversion. You can also withdraw cash from ATMs with low fees.

Using Wise can help you save money on currency exchange and international money transfers, making your Australian adventure more affordable.