Overview of Banking in Australia
This
section gives a basic overview of the Australian banking system
and provides links to banks and internet sites where you can get
more detailed information.
The Banking System
Australia has an
advanced banking system, with various types of institution: large,
Australia-wide banks, smaller state-specific banks, a number of
credit societies/credit unions and a few other financial
organisations, such as insurance companies who have diversified
into banking.
Typical Facilities
Obviously each bank
will offer their own mix of accounts and facilities, but here is a
list of typical facilities offered:
-
Transaction
Account for day-to-day transactions. Usually zero or very
low interest paid for credit balances.
-
Savings
Account which can be "at call" (ie. no notice
required to withdraw funds), or a fixed notice period for
withdrawel or a term deposit (fixed interest rate, fixed
term).
-
ATMs
(automatic teller machines) - are located at most shopping
centres. Usually free if you use a machine linked to your
bank's network, otherwise a fee can be charged.
-
EFTPOS
(electronic funds transfer at point of sale) - ie. paying for
goods using your bankcard. Most banks and retail outlets offer
this facility and the funds may be taken from your current,
savings or credit account. The larger retailers normally let
you draw extra cash out as well, with no charge.
-
Credit Cards
Mastercard, Visa and American Express cards are commonly
available, with a variety of features, such as zero annual
fee, so many days interest-free, rewards points etc.
-
Internet
Banking is now offered by most banks, enabling you to
check balances, transfer money between accounts, pay bills (BPAY
system) and so on
-
Telephone
Banking
Fees and charges
It is common for
there to be a monthly fee on transaction/cheque accounts, with a
certain number of free transactions per month. There are many
variations, though, such as zero monthly fee if a certain balance
is maintained.
You may incur
charges if you withdraw cash from an ATM outside of your bank's
network and of course, you will normally be charged for overdrafts
or other transactions like bank cheques.
Government taxes:
If you've heard of something called FID (Financial Institutions
Duty) and BAD (Bank Account Debit) tax, don't worry because
they've been abolished.
To open a bank
account in Australia, you will also need to provide 100 'points'
of identification as follows:
The 100 Point System
If you want to open
a bank or credit union account in Australia, you need to pass the
'100 point' system to prove your identification.
-
Birth Certificate
Passport
Citizenship Certificate
|
70 points
|
You can only get points
for one item in this section
|
-
Drivers Licence
(full / probationary / learner)
Shooters Licence
Public Service Employee ID card
Commonwealth or State Government financial entitlement
card (eg Pension card)
|
40 points
|
These cards must have a
photograph or signature
|
|
|
35 points
|
Applies to home buyers
or owners only
|
-
Any card on which
your name appears:
Medicare card
Credit Card (only 1 per institution)
Store Account card
Video Store Card
Library Card
Union Card
|
25 points
|
|
-
Documents on which
your name and address appear:
Car registration
Utility bill
Rental receipts
Records of another financial institution showing
you've been a member for 12 months or more
|
25 points
|
|
Some of the major
Australian banks are:
1. Commonwealth Bank
of Australia http://www.commbank.com.au
2. ANZ Bank http://www.anz.com.au
3. Westpac http://www.westpac.com.au
4. National Australia Bank http://www.national.com.au
These ‘big four’
have branches in all cities and large towns throughout the
country, and have representation overseas. In addition to the
‘big four’ there are other regional, city and state banks and
international banks. You can find most of the banks in Australia
through the Members Link on the Australian Bankers Association
website http://www.bankers.asn.au A range of financial services
information can be found on the Financial Services Institute of
Australasia website http://www.finsia.edu.au
