Bank, tax and the retirement money you get back.

Opening an Australian account

A local account is not optional: it is where your employer will pay your wages, and they will not pay anywhere else.

The big banks let you open the account online, sometimes even from home before you leave. You then need to go to a branch with your passport to verify your identity, usually within the following weeks.

Look at the account fees: many banks waive them if you deposit a minimum amount each month, which is exactly what you will not be doing in the first weeks.

Keep a foreign card with no fees alongside it for the transition period, and for trips home later on.

The Tax File Number

The Tax File Number is your Australian tax number. It is free and you apply online, once you are in the country, on the tax office's Apply for a TFN page.

Allow a few working days to receive it. Without it, your employer has to withhold tax at the highest rate, and you only get the difference back with your next tax return.

That is why you apply for it before you even sign a contract, not after.

Also create a myGov account: it is the portal that links the tax office, health and public services.

The working holiday maker tax rates

Working holiday visa holders have their own tax rates, different from those of residents, applied from the very first dollar earned. The official details are on the Working holiday makers page.

The Australian tax year does not follow the calendar year: it runs from 1 July to 30 June. The return is filed in the following months, and many working holiday makers get an overpayment back at that point.

Keep all your payslips. They are needed for your tax return, for superannuation, and to prove your specified work if you are aiming for a second year.

Superannuation, the money people forget

Superannuation is the Australian retirement system. Your employer pays a percentage of your wages into a fund, on top of your pay. It is not taken out of your wages, it is added.

When you leave Australia for good and your visa expires, you can apply to get this money back. It is the Departing Australia Superannuation Payment.

It is heavily taxed when paid out, but over a year of work it adds up to an amount that matters. Many people leave without claiming it.

Two practical tips: keep the same fund throughout your stay rather than opening one per employer, and prepare the application while you are still in the country, where certifying documents is much easier.

Transferring and spending without losing out

Between your home currency and the Australian dollar, the fees hide mostly in the exchange rate applied, not in the commission shown.

A transfer service at the real rate costs a fraction of a traditional bank transfer, and the difference adds up to hundreds of euros over a year.

For everyday spending, a card that charges nothing for payments or withdrawals in foreign currency avoids an invisible deduction every time you shop.

The services I use are on my travel resources page, with the referral codes.

Frequently asked questions

How do you get a Tax File Number in Australia?

You apply for free online on the Australian Taxation Office website, once you are in the country. The number is sent within a few weeks. Without it, your employer withholds tax at the highest rate.

Can you open an Australian bank account from abroad?

Several Australian banks let you open the account online before you leave, then activate it on arrival by showing your passport at a branch. It is the simplest solution, because wages are almost always paid by bank transfer.

What is superannuation and can you get it back?

It is the Australian retirement system. Your employer pays a percentage of your wages into a dedicated fund, on top of your pay. When you leave Australia for good, a temporary visa holder can apply to get this money back through the scheme set up by the tax office. The payment is taxed at a high rate, but it is still far better than simply leaving it behind.

Do you need to file a tax return on a working holiday?

Yes. The Australian tax year runs from 1 July to 30 June, and the return is filed afterwards. Any overpayment is refunded, which is not unusual when you worked without a Tax File Number at the start.

Which bank card avoids fees in Australia?

The issue is not the card but the exchange rate and the withdrawal fees. A multi currency account or a neobank with no fee on foreign currency payments avoids the hidden margin applied by traditional banks. Keeping an account at home with an IBAN is still useful for any direct debits left there.