How can I transfer money to Australia?
Australia has no currency restrictions and you may import or export as much money as you wish, in practically any currency. Currency refers to notes (including foreign currency) and doesn’t include travellers’ cheques or other monetary instruments. However, amounts of $10,000 or more in Australian or foreign currency must be declared to customs on arrival. This is to combat tax evasion and organised crime. Forms (CBM-PC) for reporting currency transfers are available from customs officers at ports and airports.
International Bank Transfers
When transferring money to Australia, shop around for the best exchange rate and the lowest costs. Banks are often willing to negotiate on fees and exchange rates when you’re transferring a large amount of money.
Investigate the possibility of ‘pegging’ the money you plan to transfer for a property purchase at a fixed (and favourable!) rate. Most banks and foreign exchange brokers offer this option (which may be known as a ‘forward time option’), although charges may be high.
When transferring or sending money to (or from) Australia, you should be aware of the alternatives and shop around for the best deal. A bank-to-bank transfer can be made by a normal transfer or by a SWIFT electronic transfer. A normal transfer is supposed to take three to seven days but in reality takes longer (particularly when sent by post), whereas a SWIFT telex transfer should be completed in as little as two hours (although even these aren’t always reliable). It’s usually quicker and cheaper to transfer funds between branches of the same bank or affiliated banks than between non-affiliated banks.
If you intend to send a large amount of money abroad for a business transaction such as buying a property, you should ensure that you receive the commercial rate of exchange rather than the tourist rate. Shop around and compare your bank’s rate with that of at least one foreign exchange broker who specialises in sending money abroad (particularly large sums). Specialist currency brokers generally offer the best exchange rates when converting large sums, e.g. for a property purchase, from one currency to another.
Some banks levy high charges on the transfer of funds to Australia to buy a home, which is the subject of numerous complaints, while others charge nothing if the transfer is made in A$. Many Australian banks deduct commission, whether a transfer is made in dollars or a foreign currency. Always check charges and rates in advance and agree them with your bank (you can often negotiate a lower charge or a better exchange rate when transferring a large sum of money). The cost of transfers varies considerably, not only the commission and exchange rates, but also the transfer charges (such as the telex charge for a SWIFT transfer).
You can send money direct from your bank to another bank via an inter-bank transfer. Most banks have a minimum charge for international transfers, which makes it expensive for small sums. Overseas banks may also deduct a percentage (e.g. 1 or 2 per cent) of the amount transferred as their fee (everybody wants a cut!).
Exchanging Foreign Currency
When buying or selling foreign currency in Australia, beware of excessive charges. Apart from the difference in exchange rates, which are posted by all banks and bureaux de change, there may be a significant difference in fees. It pays to shop around for the best exchange rates, particularly when changing a lot of money (it’s possible to haggle over rates in some establishments). The A$ exchange rate against major international currencies is listed in banks and in the major daily newspapers.
Major Australian banks change most foreign banknotes (but not coins), but offer a better exchange rate for travellers’ cheques. Bureaux de change often have longer business hours than banks, particularly at weekends. Most offer competitive exchange rates and low or no commission (but check). They’re easier to deal with than banks but generally offer worse exchange rates. There are many private exchange bureaux at airports, main railway stations and major cities. However, airport bureaux de change and change machines usually offer the worst exchange rates of all and charge the highest fees (e.g. handling charges).
Most Australian banks and building societies sell foreign currency, although you usually need to order it a few days in advance, as only the major branches in capital cities keep foreign currency in stock. Most banks have a wide spread (e.g. 5 to 10 per cent) between their buying and selling rates for foreign currencies.
For more inforamtion see Living and Working in Australia by David Hampshire
