How to Open an Australian Bank Account as an Expat or New Arrival

So, you’re considering a move to Australia or maybe you’ve already landed and you’re setting up your new home. One of the first things you’ll need is a local bank account to manage your finances. Whether you’re an Australian expat returning home or a foreigner setting foot in Australia for the first time, this guide is tailored just for you.

Who is this Guide For?

This is for you if you’re an Australian expat who’s been away and is now returning. It’s also for you if you’re a foreign individual planning to live, work, or study in Australia.

Benefits of Opening a Local Australian Bank Account

Having a local bank account will make your life in Australia smoother. You’ll avoid international transaction fees, build a financial history, and have access to local banking services. Plus, it’s just more convenient for everyday transactions. You’ll find that not all vendors will accept payments from international providers, so having a local bank account would certainly make for a more seamless Australian experience.

General Requirements for Opening a Bank Account

Before diving into the specifics, let’s cover the basics:

• Proof of Identity: Typically, a passport or ID card will do.
• Australian Residential Address: You’ll need this once you’re in Australia.
• Tax Identification Number (TIN): This is required for any country where you’re a tax resident.

Specific Requirements for Australian Expats

If you’re an expat returning to Australia, banks will want proof of your previous residency. This could be old utility bills or bank statements. They might also ask why you were away, so be prepared to discuss your overseas employment or studies.

Specific Requirements for Foreigners Moving to Australia

Foreigners will need visa documentation that shows they have the right to live and work in Australia. Proof of an overseas address and possibly a reference from an overseas bank might also be required.

Steps to Open the Bank Account

1. Research: Choose the right bank based on your needs.
2. Gather Documents: Have all your paperwork ready.
3. Book an Appointment: Or simply walk into a local branch.
4. Complete the Application: Fill out all necessary forms.
5. Wait: Once approved, you’ll receive your account details.

Navigating the 100 Point ID System

If you’re new to Australian banking, you’ll soon come across the 100-point identification system. Instituted by the Australian government, this system aims to combat financial transaction fraud, ensuring that only you can access your accounts.

What is the 100-Point System?

This personal identification system was established to prevent fraudulent activities. When opening a new bank account, you’re required to verify your identity by accumulating 100 points from various identification documents. These documents are categorized into primary and secondary, with each having a specific point value.

Primary Documents (70 points each):

• Birth certificate or birth card issued by the relevant states’s Birth Registry
• Citizenship certificate.
• Current passport.
• Expired passport (which hasn’t been cancelled and was valid within the last two years).
• Other identity documents similar to a passport, including diplomatic documents.

Secondary Documents (with photograph and name, 40 points each):

• Driver’s license issued by an Australian state or territory.
• Road and Maritime Services photo card.
• License or permit issued under a law of the Commonwealth, a state, or a territory government.
• Identification card issued to a public employee or by the Commonwealth.
• Identification card issued to a student at a tertiary education institution.

Secondary Documents (with name and address, 35 points each):

• Document held by a cash dealer giving security over your property.
• Council rates notice.
• Land Titles Office record.
• Document from your current or previous employer from the last two years.
• Mortgage or other security document held by a financial institution.

Secondary Documents (with name and either signature or date of birth, 25 points each):

• Marriage certificate (for maiden name only).
• Credit card.
• Foreign driver’s license.
• Medicare card.
• EFTPOS card.
• Record of education institution attended within the last 10 years.
• Record of professional or trade association membership.

How to Verify Your Identity with the 100-Point System

Once you’ve gathered your documents, you can proceed to verify your identity online when applying for a new bank account. For instance, if you’re using your driver’s license, you’ll be prompted to enter the license number and might need to scan an image of the front. The beauty of this system is that you can complete the verification online in just a few minutes, eliminating the need to visit a bank branch.

However, if you face challenges verifying your identity online, you might need to visit a bank branch in person. The bank staff can assist you in sourcing the required ID or guide you on the next steps. If visiting a bank branch isn’t feasible, consider checking with a Centrelink office or a Services Australia office.

Incorporating the 100-Point System into Your Application Process:

When you’re preparing to open your Australian bank account, keep the 100-point system in mind. Start by gathering your primary document, which will cover 70 points. Then, supplement with secondary documents until you reach the 100-point threshold. This proactive approach will streamline your application process, ensuring you can access your new bank account without unnecessary delays.

Tips for a Smooth Application Process

• If your documents are in another language, get them translated to English.
• Always have copies of all your documents.
• Some banks allow you to start the application process online before arriving in Australia. For instance, Commbank allows this if you’re moving within 3 months. However, NAB requires you to be in Australia.
• Consider online specialists like Wise or Revolut, especially if you need an account before physically arriving in Australia.

Understanding Australian Banking Features

Australia has a robust banking system with features like online banking, mobile apps, and contactless payments. Familiarise yourself with these to make the most of your banking experience.

Conclusion

While traditional Australian banks offer solid options, especially if you’re already in Australia, online specialists might be more flexible for those still abroad. Services like Wise and Revolut cater to an international lifestyle, often providing more competitive rates and easier account setup processes.

FAQs

Can a foreigner open an account in Australia?

Yes, if you’re a legal resident or planning to relocate soon. However, you might need to visit a branch in person to complete the process.

How much do I need to open a bank account in Australia?

Some banks have minimum deposit requirements, while others, like online specialists, might not have any.

Can I open an Australian bank account online?

Some traditional banks allow online applications, but you’ll likely need to visit a branch for verification. Online specialists usually offer a fully digital process.

Can I open a bank account in Australia before landing?

Traditional banks might require you to be in Australia, but online specialists like Wise or Revolut can set you up from abroad.

Remember, always do your research and choose the best option for your unique needs. Our team at Ally Wealth Management can guide you through setting up your banking with the right bank/s based on your own needs and objectives. Welcome to Australia, and happy banking!

Ally Wealth Management is the trusted ally in finance for Australians at home and across the globe. As both Australian expats and residents, the founders of Ally have a unique understanding of the common personal financial challenges faced.

Book your complimentary appointment with our team at Ally Wealth Management to discuss how we can help you to achieve your financial goals.

Ally Wealth Management Pty Ltd is a Corporate Authorised Representative of Sentry Advice Pty Ltd ABN 77 103 642 888. Sentry Advice holds an Australian Financial Services Licence (AFSL) No. 227 748.

General Advice Warning: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.