Opening a bank account in Australia is one of the earliest things to do when settling, and can even be started before you set foot in the country. Having a domestic account lets you receive your salary, pay bills and build your initial financial foundation.
Australia’s banking system is modern, secure and very convenient for newcomers. However, the account-opening process and certain documentation rules differ from Vietnam, leaving many families confused in their first week. One special feature is that Australia allows people not yet in the country to open an account remotely, an advantage few countries offer.
This article guides you on how to open an account, the well-known identity verification rule called the “6-month rule”, how to choose the right bank, and basic financial management principles. Because fee schedules and conditions change periodically, you should cross-check with each bank’s current information before deciding.
opening a bank account in Australia — illustrative image.
Contents
Why you should open a bank account in Australia early
Opening a bank account in Australia should be a priority because almost every transaction here is tied to an account. Salaries are paid by bank transfer, utility bills are paid by direct debit, and most daily transactions use a card or contactless payment rather than cash.
Another important reason is refunds from government agencies. When you receive a tax refund or reimbursements from the health system, the money is transferred directly into an Australian bank account. Without an account, you will face delays in many essential procedures related to the article health insurance in Australia and tax settlement.
Furthermore, having a domestic account is the first step in building a financial footprint in Australia. As you transact regularly, pay bills on time and maintain income, a financial record gradually forms, which is useful later when you want to rent long-term housing, sign up for a postpaid phone plan or take out a car loan.
The 6-month rule when opening an account
A particular advantage in Australia is what is commonly called the “6-month rule”. Many major banks allow you to open an account online from overseas before arriving in Australia, needing only your passport and some basic information, without having to present full documentation right away.
Under this mechanism, if you open the account within a certain period before arrival and complete identity verification at a branch within the first few months after entering the country, you can transfer money into the account beforehand, ready to use as soon as you land. This is how many families avoid having to carry large amounts of cash.
The typical process has two steps: register remotely online to get an account number, then visit a branch to present your passport and documents within the required timeframe to fully activate the account and receive your card. You should check the specific policy of each bank, as the deadline and verification conditions may differ.
Documents needed to complete verification
Australia uses a points-based identity verification system called “100 points of ID”. Each type of document is assigned a certain number of points, and you need to accumulate 100 points to complete verification. For newcomers, commonly used documents include:
- Passport: usually the primary document, carrying a high point value.
- Visa or proof of residency status: adds credibility to your application.
- Proof of address: a lease agreement, utility bill or official letter showing the address.
- Supporting documents: a driver’s licence, foreign bank card or other documents to make up the required points.
In the first week, having a residential address should be a priority, as it unlocks many other procedures. If you have not yet secured long-term housing, some banks flexibly accept a temporary address or a relative’s address; ask clearly when you visit the branch.
Choosing a bank and account type
Australia’s banking market is led by four major banks, alongside many regional and digital banks. The four major banks have extensive branch and ATM networks, convenient for newcomers who need in-person transactions during identity verification. Digital banks often waive many fees but offer less in-person support.
When opening an account, you are generally advised on two basic types. A transaction/everyday account is used for daily spending and comes with a debit card. A savings account is used to deposit spare funds and earn interest. Many families open both to keep spending and savings separate.
You should compare the following factors between banks: the monthly account-keeping fee and conditions for waiving it, out-of-network ATM withdrawal fees, international transaction fees if you still send money to and from Vietnam, and the quality of the mobile app. For newcomers, a good app and a branch network near where you live are often more important than a small difference in interest rate.
Payments and cash withdrawals in Australia
Australia is an almost cashless society. Contactless payment by card or phone is so common that many places do not accept cash. An instant transfer system lets you send money to someone else within seconds, even outside business hours, using an account number or a simple identifier code.
That said, you should still keep some cash on hand for small situations and be mindful of fees for withdrawing at ATMs outside your bank’s network. Using ATMs within your own bank’s network helps you avoid unnecessary fees.
Financial management and related obligations
Once you have an account, you should link it to your financial and tax profile. One important step is providing your Tax File Number (TFN) to the bank. If you do not declare a TFN, the bank may withhold tax on your deposit interest at the highest rate. You should read the article income tax in Australia to understand how to apply for a TFN and link it to your bank account.
A financial concept unique to Australia is superannuation, the compulsory retirement fund. When you work, your employer must contribute a percentage of your income into your super fund. This is separate from a regular bank account, but it is an important part of the long-term financial picture. The Australian Taxation Office manages this system and provides guidance on choosing a suitable fund.
To plan your spending realistically, you should link your bank account to a clear budget for the first few months. The article cost of living in Australia helps you visualize the main expenses so you can allocate money sensibly as soon as your account starts receiving income.
A note on international money transfers
Many newly arrived families still need to transfer money between Vietnam and Australia in the early period. You should compare traditional bank channels with specialized international money transfer services, as exchange rate differences and fees can vary significantly. For large amounts, be mindful of cash flow declaration regulations and keep documentation of the source of funds in case you need to explain it to the authorities.
The Australian Taxation Office has guidance on obligations relating to foreign income and assets for tax residents. Since this is an area prone to confusion, you should look it up directly at Australian Taxation Office or ask a licensed accountant if the amount of assets being transferred is significant.
Building a credit history in Australia
When you first arrive, you start from zero in terms of credit, as credit history in Vietnam does not carry over to Australia. Your credit score here affects your ability to rent long-term, sign up for a postpaid phone plan, get a credit card, and later take out a car loan or home loan. So building a good credit profile should be done methodically from the start.
The simplest way to build credit is to use services in your own name and pay on time: a phone contract, utility bills, or a low-limit credit card used regularly and paid off in full each period. You should avoid submitting multiple credit applications in a short time, as each check leaves a trace and can make your profile look less stable. Paying late or missing a bill is something to avoid absolutely, as overdue debts are recorded and are hard to remove.
You have the right to request a free copy of your credit report periodically from credit reporting agencies. Checking it helps you spot errors and track your profile’s progress. A solid credit history is a very valuable intangible asset for major financial plans later on in Australia.
Being alert to financial scams and account security
Newcomers are a common target of financial scams. In Australia, common scams involve impersonating banks, tax authorities or immigration authorities via text message, email and phone calls, asking you to provide account information or transfer money urgently. The safety rule is that banks and government agencies never ask for passwords, OTP codes, or money transfers through unusual channels.
- Do not click on unfamiliar links: messages impersonating a bank often include a link to a fake login page; open the official app yourself instead of clicking the link.
- Verify independently: if you receive a suspicious call, hang up and call back the official number printed on your card or the bank’s website.
- Protect your identifying information: your TFN, passport number and account details should only be shared through official channels that you initiate contact with.
- Enable multi-layer security: activate two-factor authentication on your banking app and email.
If you suspect you have been scammed or your information has been exposed, you should notify your bank immediately to lock your account and contact the relevant authorities. Reacting quickly is often the deciding factor in whether the money can be recovered. Being careful in the first few months, while you are not yet familiar with the official communication channels of Australian organizations, is the most effective way to protect your family’s finances.
Summary
Opening a bank account in Australia is a foundational step, and the specific choice depends on your goals, the bank’s proximity to where you live, and your transaction needs. Take advantage of the 6-month rule to open an account remotely if possible, prepare enough documents for the 100-point system, declare your TFN to avoid high tax withholding, and build spending management habits from the start. Because fee schedules and regulations change periodically, you should check current information at official sources and with each bank before making a decision.
References
This article is compiled from government sources. Immigration regulations and figures may change over time; you should check current information on the official website before making a decision.
Can I open an Australian bank account before arriving?
Yes. Many major banks allow you to open an account online from overseas, after which you visit a branch to verify your identity within the first few months to fully activate it.
What is the 100-point identification system?
It is Australia’s identity verification system; each document carries a certain number of points, and you need to accumulate 100 points, usually starting with your passport.
Vì sao nên khai TFN cho ngân hàng?
If you do not declare your Tax File Number (TFN), the bank may withhold tax on your deposit interest at the highest rate.
Should I choose a major bank or a digital bank?
Major banks have an extensive branch network, convenient for newcomers who need in-person transactions; digital banks usually have lower fees but limited over-the-counter support.
Is superannuation a regular bank account?
No. It is a compulsory retirement fund, separate from a regular account, funded by your employer contributing a percentage of your income while you work.
