Opening a Bank Account & Managing Your Taxes in Australia

Jump right in:

• How to open a bank account in Australia
• Bank fees and minimum deposit
• Top banks in Australia
• What should I know about taxes in Australia?
• What is the income tax in Australia?
• [Do I have to file a tax return — and by when?](#do-i-have-to-file-a-tax-return-in-Australia-and-by-when]

How to open a bank account in Australia

Can I even open a bank account in Australia as a foreigner?

Yes, most Australian banks make it quite simple for foreigners to open an account.

Unlike in some countries, you don’t need to be physically present to do it. Most institutions let you set everything up online or over the phone.

The most common bank accounts in Australia

Everyday transaction accounts:  Used for day-to-day transactions, daily withdrawals, and deposits.

Savings accounts:  Similar to transaction accounts but with a higher interest rate on your savings balance.

Credit card accounts: As in other countries, these let you access funds on credit (money that isn’t immediately yours).

Foreign currency accounts:  Larger banks will offer these types for people who are still receiving income in a different currency.

Joint accounts:  Used for opening an account with a spouse, business partner, or another second party.

Term deposits: Like savings accounts with higher interest rates, but your money is locked in for a set period.

Can I get an Australian credit card as a foreigner?

While opening a bank account is relatively easy, getting issued a credit card might be harder for an expat.

However, some banks will still issue one to non-residents, including:

• NAB
• CommBank
• ANZ Bank
• Westpac

Requirements to open a bank account as a non-resident

To open a bank account in Australia, you’ll need to pass what’s called the 100-point check. This is a system where different forms of ID — like your passport, driver’s license, rental agreement, or utility bill — are each worth a certain number of points. You need to reach at least 100 points to open an account.

The good news is that you can open a bank account online from overseas. Most major Australian banks (see below) let non-residents set up a checking account through their websites before arriving in the country.

Required information & documents to open a bank account

• Planned arrival date in Australia (some banks may also ask for your departure date)
• Australian address where you’ll be staying
• Visa for entering the country
• Employment and salary details (if applicable)
• Passport number or other valid ID
• 100 points’ worth of identification documents (required once you’re in the country)

You can usually open your account between three to twelve months before you arrive. The process is quick and typically takes about five to ten minutes.

Most banks require you to be at least 18 years old, though some, like Westpac and Commonwealth Bank, allow younger applicants.

If you open your account within six weeks of arriving in Australia, you’ll usually only need your passport — no need for the full 100-point check.

Bank fees and minimum deposit

No-fee bank accounts in Australia are the norm, as many institutions do not charge monthly fees and offer unlimited transactions. If they exist, fees are very low and are usually waived provided a minimum amount is deposited each month. This is typically set to 2,000 AUD (1,377 USD), which is lower than the average monthly salary.

However, there are some fees to watch out for, such as those for ATM withdrawals. With over 29,000 ATMs spread across the country, you should have no problem accessing your account. ATM withdrawals are typically free when using your own bank’s machines. But if you use another bank’s ATM, you’ll likely incur a fee of around 2 AUD (1.30 USD) per transaction.

Overdraft fees may also apply in some banks while others do not charge.

To be on the safe side, make sure to also ask about any other rates and charges, currency conversion fees, and international money transfers before settling on a bank.

Top banks in Australia

The four biggest banks in the country are:

• NAB
• CommBank
• ANZ Bank
• Westpac

International banks in Australia

Australia has several foreign subsidiary banks and branches of foreign banks in the country. Some examples are HSBC Bank, BNP Paribas, Citibank, Bank of China, and Royal Bank of Canada.

Get a full list of international banks on Finder.

Australia’s best online banks

Nowadays, most of Australia’s banks offer online services so you can manage your accounts online or through an app.

Some of Australia’s online-only banks include:

ING: Offers everyday transaction and savings accounts, term deposits, business savings accounts, commercial mortgage accounts, home loans, superannuation accounts, self-managed super funds (SMSF) cash accounts, and term deposit accounts;

ME Bank: Offers transaction and online savings accounts, term deposits, credit cards, personal and home loans, and business savings accounts and term deposits;

UBank: Offers savings accounts, combined savings and transaction accounts, home loans, and SMSF accounts;

RaboDirect: Offers high-interest savings accounts, regular savings accounts, notice savings account, term deposits, and SMSF accounts;

Easy Street: Offers everyday transaction accounts, online savings accounts, personal loans, a variety of home loans and insurance options.

What should I know about taxes in Australia?

Australia has several types of taxes, including excise, sales, estate, property, and income tax — income tax being the most significant. Taxable income can include salary, wages, business income, interest, rent, and dividends.

Residents are also required to pay a 2% Medicare levy on their taxable income, which helps fund the public healthcare system. Non-residents are not required to pay this levy. Note that residency here refers to your status in the country rather than your tax status, which can differ (i.e., you can be a resident for tax purposes without being a permanent resident in or citizen of Australia).

Taxes are collected at the federal level through the Australian Taxation Office (ATO). Compared to many other developed countries, Australia’s tax burden is relatively low, according to OECD’s Taxing Wages 2025 report.

The Australian government has been working on building a more supportive tax system, especially for workers and small to medium-sized businesses (see section Taxes for business owners below).

For example, starting in the tax year 2024–2025, the 32.5% tax rate for the 45–135k AUD income bracket was reduced to 30%, resulting in 94% of taxpayers facing a marginal tax rate no higher than 30%.

It’s estimated that 60% of personal income tax are paid by the top 20% of earners.

What is the income tax in Australia?

In Australia, if you become a resident or stay for at least six continuous months in a year, you are considered a tax resident.

As a tax resident, you will be subject to tax on all income, including earnings from overseas. However, Australia has income tax treaties with over 40 countries to help prevent double taxation.

Temporary residents are also subject to tax, but at different rates than Australian tax residents. To navigate this process and handle your tax returns, it’s a good idea to hire an accountant experienced in working with expats.

Individual income tax rates in Australia are progressive, meaning the more you earn, the higher your tax rate. The current salary tax rates apply differently to residents and non-residents for tax purposes.

For tax residents (as of 2024)

For non-residents (as of 2024)

The employer usually handles the personal income tax payments directly — it’s taken out of an employee’s pay before it is received. This amount is then handed over to the ATO.

Taxes for self-employed people in Australia

People that are self-employed, sole traders, or in a partnership have to report and tax any income they make through their business as personal income.

If your revenue is high, this might mean that you pay higher taxes than you would if you operated through a company (see the next section).

You do not have to make super guarantee (SG) payments (money put aside for retirement). However, personal contributions are encouraged as a way to save for old age.

Taxes for business owners

If you’re a business owner, it is recommended you save all your receipts and work-related expenses. An accountant can help you sort through them at the end of each quarter to figure out your deductibles, and what expenses you can claim so you pay fewer taxes.

The main taxes affecting businesses in Australia are Company (Income) Tax, Capital Gains Tax (CGT), and the Goods and Services Tax (GST). These are all set by the Australian Government.

All companies in Australia (including non-resident companies) are subject to a federal company tax rate of 30%. Small and medium businesses with turnovers below 50 million AUD (more than ~32.5 million USD) are subject to a reduced tax rate of 25% (as of 2023/24).

Businesses can make tax payments monthly, quarterly, or annually.

Do I have to file a tax return in Australia — and by when?

If you earn income in Australia — whether you’re an employee, freelancer, or business owner — you’ll likely need to lodge a tax return. This is usually done online and must be submitted between 1 July and 31 October for the previous financial year.

After lodging, you’ll either get a tax refund or a bill, depending on whether you’ve paid too much or too little tax during the year.

Tax deductibles in Australia

When preparing your tax return, there are a number of costs you can list to reduce your taxable income, including:

Work-related expenses: Vehicle and travel, clothing, laundry, dry-cleaning, home office, phone and internet, overtime meals, personal development (e.g., workshops), tools, and equipment

Tax-related expenses: Cost of managing tax affairs

Charity contributions: Gifts and donations to registered charities

Superannuation: Personal contributions to your super fund (retirement investment in Australia). These are extra payments you add yourself, on top of what your employer contributes, to help grow your savings for retirement.

Income deductions: Interest, dividends, bank fees, interest on borrowed money for shares, and investment management fees

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