Banking, Money and Taxes in Australia

Australia has one of the strongest economies in the world on the back of three decades of dedicated structural and policy reforms. While it has not been immune to the recent economic crisis, Australia remains major regional financial hub with a sophisticated banking system.

Expats wanting to open a bank account in Australia should always investigate all available options particularly as interest rates can vary between one bank and another. Australia’s major banks are: the Commonwealth Bank of Australia; ANZ Bank; Westpac; and National Australia Bank.

As banks are always keen to attract new customers, they do have a wide service offering, and are keen to provide assistance to expatriates. Opening a bank account in Australia is a fairly straightforward procedure requiring a certified passport copy, proof of residential address and a bank statement from the previous 3 months.

Expatriates will find that tax rates are high in Australia, with a rate of 47% on income above $60,000. Residents are taxed on their worldwide income including salary and dividends although there are special rules applicable to expatriates. It is strongly advised to consult with an Australian accountant or tax lawyer so that you have information on the latest tax rates and allowances that generally fluctuate in a tax year.
 

The Australian Tax Year ends on 30 June, and tax returns should be lodged by 31 October. Expatriates earning an income for more than 183 days in any tax year will be considered by the tax office as an Australian resident for tax purpose with the exception of those holding working holiday visas.
 

No one can be registered as a taxpayer without a TFN, which is the unique number issued by the Australian Tax Office.
 

Government information: www.ato.gov.au
Financial Services Institute of Australasia: www.finsia.edu.au