Banking in Sydney

Sorting out your finances should be at the top of your to-do list when you reach Sydney. You’ll need to look at three main areas: banking, taxes, and superannuation:

Opening a bank account in Australia

Setting up a new bank account in Australia is quite straightforward. Some banks may allow you to open your Australian bank account before you arrive in the country, but if not, you’ll just need your passport and one other form of ID (credit/bank card, photo driver’s licence or student card).

You can open a variety of different accounts – for everyday banking, savings, and credit cards. It is advisable to shop around before opening your account, as you’ll find different interest rates and offers to suit your needs, and bank charges apply to some accounts. Don’t forget to compare all banking fees and interest rates before deciding on a banking institution.

Some of the major Australian banks include:

Most banks and ATMs (Automatic Teller Machines) will allow you to withdraw from international bank accounts, provided your bank card has an international symbol, such as Cirrus or Maestro. Be aware that, unless you use an ATM provided by your bank, you could incur a fee for withdrawing cash. However, in September 2017, all of the “big four” banks (Commonwealth Bank, NAB, WestPac and ANZ) dropped the $2 fee for ATM withdrawal for non-bank members.

Taxes

Apply for a Tax File Number (TFN) through the ATO (Australian Taxation Office) as soon as possible after you arrive in Australia. It will take up to 28 days to process, and you should provide it to your workplace within 28 days so that you’re taxed at the correct rate (rather than the highest rate, which is the default), and also your bank to avoid your interest being taxed at the highest rate. You may use your work address if you don’t yet have a permanent address in Australia.

Taxes are levied in Australia on a sliding scale, although residents and non-residents are taxed at different rates, so it’s best to work out if you’re a resident for tax purposes as soon as you can.

The Australian financial year runs from July 1 to June 30, with individual tax returns due by the end of October. Your employer will issue you with a statement at the end of the financial year that will give a summary of your earnings and the taxes you’ve paid, which you can use to fill out your tax return either online through myGov or on a paper copy (available to download or by calling 1300 720 092).

If you need a foreign currency exchange or transfer, most banks above offer you the option to transfer money internationally, or you can use a service like TransferWise. To ensure you have access to the right information and expertise, OzForex offers a free service that is tailored to suit your individual requirements – contact OzForex on +61 (0) 2 8667 8090 to speak with one of their consultants. Alternatively, you can visit their website at www.ofx.com or email info@ozforex.com.au to obtain further information.

Superannuation

In Australia, it’s compulsory for employers to pay 9.5% of your income into a superannuation fund (pension). Superannuation (‘super’) contributions are required, even for temporary residents and working holiday makers and are only redeemable upon retirement age, or if you’re an eligible temporary resident permanently departing Australia (at which point it will be subject to tax).

While superannuation is compulsory, individual employees have the right to select a complying superannuation fund that suits them (if not, your employer will supply a default super fund). Check out consumer advocates CHOICE for more information about choosing your superannuation fund.

While employed in Australia it is important that temporary residents:

  • Are aware of the superannuation fund that their employer is contributing to on their behalf.
  • Keep a record of the amount of superannuation that they have.
  • Contact their superannuation fund before leaving Australia to find out if they are eligible to access their superannuation contributions.
     

For more information on superannuation and accessing superannuation when departing Australia, you can call the Tax Office Superannuation information line on 13 10 20 (only available in Australia) or visit the Tax Office website: www.ato.gov.au/super.