Residency & Expat Life
How to Open a Bank Account in Australia as a Newcomer
A newcomer's guide to opening an Australian transaction and savings account, opening before you arrive, the 100-point ID check, why you need a Tax File Number
Open your account before you arrive
Australia is unusually welcoming here: the big banks let migrants and students open an everyday transaction account online up to twelve months before arriving, using only your passport details and overseas address. Your money sits ready, and when you land you simply visit a branch with your passport to verify your identity and collect your debit card, usually within your first week. This 'migrant' or 'newcomer' account is offered by the four largest banks: Commonwealth Bank (CBA), Westpac, ANZ and NAB. Opening early means your salary, rent and deposits can flow from day one, which removes a major source of stress when you are also finding housing and work in a new country.
The 100-point identity check
Australia verifies new customers using a '100-point' identification system: you must present a combination of documents that together add up to 100 points. A passport is a primary document worth 70 points; an Australian driver's licence is worth 40; and secondary documents such as a debit or credit card, a Medicare card, or a utility bill in your name are worth 25 points each. As a newcomer your passport plus one or two secondary items will usually clear the threshold. If you opened the account online before arriving, the in-branch visit is mainly to complete this check, so bring originals of everything you have, including your visa grant notice and any Australian address documentation.
Why you need a Tax File Number
You can open and use a bank account without a Tax File Number (TFN), but you should apply for one as soon as you can. If the bank has no TFN on file, it must withhold tax on the interest your savings earn at the top marginal rate, money you would have to claim back later through a tax return. Applying for a TFN is free through the Australian Taxation Office once you have arrived and have a visa with work rights, and it usually arrives within about four weeks. Give the TFN to your bank and your employer promptly so that interest is taxed correctly and your pay is not over-withheld under the no-TFN rules.
Choosing accounts and avoiding fees
You will generally open a transaction (everyday) account for spending and a separate savings account that pays a higher interest rate. Many everyday accounts now have no monthly account-keeping fee, or waive it when you deposit a set amount each month, so compare carefully. Watch for overseas ATM and foreign-transaction fees if you will travel or shop internationally, and check whether the savings account's 'bonus' interest rate depends on growing the balance and making no withdrawals each month. App-based and online options exist too, but the big four have the widest branch and ATM networks, which can be convenient while you are settling in.
After opening: payments and protection
Once your account is active, set up your salary deposit and link it to PayID and Osko, Australia's fast-payment system that lets you send and receive money in near real time using a phone number or email. Use BPAY for paying bills and direct debits for rent and utilities. Deposits with Australian authorised deposit-taking institutions are protected by the government's Financial Claims Scheme up to $250,000 per account holder, per institution, so your savings are secure. Download your bank's app for everyday banking, and keep your TFN and identity documents private to guard against fraud as you build your financial life in Australia.
Online banks, PayID and sending money overseas
Australia has fast, modern payments that are worth setting up early. Link a PayID, your phone number or email, to your account and you can receive money instantly through Osko, so learning how to set up PayID is one of the first things to do. For bills, BPAY lets you pay using a biller code and reference number. If you want to avoid ongoing charges, several online banks such as ING, Up and Macquarie offer a no fee bank account in Australia for newcomers, often with rebated ATM withdrawals and strong app features. When you need to move funds across borders, the cheapest international transfer from Australia usually comes from a specialist provider rather than a bank wire, because the exchange-rate margin is smaller. Switching banks is penalty-free, so review your account once the introductory perks end.
Frequently asked questions
Can I open an Australian bank account before I move?+
Yes. The big four banks let migrants and students open an everyday account online up to twelve months before arrival using a passport and overseas address. You verify your identity at a branch after you land.
What is the 100-point ID check?+
It is Australia's identity system where documents carry point values, a passport is worth 70 points, a driver's licence 40, and items like a Medicare card or utility bill 25 each, and you must reach 100 points.
Do I need a Tax File Number to open an account?+
No, but without a TFN the bank must withhold tax on your interest at the top rate. Apply for a free TFN through the ATO once you arrive and give it to your bank and employer.
Is my money safe in an Australian bank?+
Yes. The government's Financial Claims Scheme protects deposits up to $250,000 per account holder, per authorised institution, covering everyday balances at the major banks.
Can I open an Australian account before I arrive?+
Several major Australian banks let newcomers open an account online from overseas, often weeks before arrival, so your money is ready when you land. You typically provide identity and visa details online, then visit a branch with your passport to verify your identity and activate full access after you arrive. Opening early can make settling in far smoother.
What is the role of the Tax File Number with my account?+
You are not legally required to give your bank a Tax File Number, but if you do not, the bank may withhold tax from any interest you earn at the highest rate. Providing your Tax File Number once you have it ensures your interest is taxed correctly, so most newcomers supply it to their bank shortly after arriving and obtaining the number.
Related reading
This content is for general informational purposes only and does not constitute legal or immigration advice. Rules change, always verify on the official government site before applying.
Official source: moneysmart.gov.au