New residents would normally want to arrange a banking relationship soon after arrival, if it has not already been arranged prior to arrival. The relationship may eventually extend to vehicle loans, a home loan and perhaps even a business account or other financial services offered, such as investments, superannuation, insurance, financial planning etc.
Financial institutions are compelled by law to withhold tax on interest earnings at the top tax margin of 46.5% from the accounts of those who have failed to provide the bank with a tax file number (TFN). Therefore new migrants are advised to register at the tax office at the earliest opportunity, so that they can provide the financial institution with a TFN and avoid the withholding of tax. For those who arrange to open a local bank account prior to arriving, as a non-resident by the Australian Tax Office definition, the tax withheld on interest earnings is 10%.
When you open a bank account in the first six weeks of arrival in Australia, a passport or travel document is all you require for identification. To open an account, financial institutions have a points system and allocate a points ‘weight’ to each of a range of identification papers. You are allowed to provide one ‘primary’ document, consisting of either a birth certificate, a citizenship certificate, a passport or an international travel document. The rest of the points can be made up with one or more of a long list of documents, including driver’s licence, Medicare card, house utility account, vehicle registration etc. Overseas migrants may not yet have any of these, but a written reference from a financial institution where you held an account for at least twelve months, in addition to a ‘primary’ document, should suffice.
Banking hours are 9:30am to 4:00pm Mondays to Thursdays and 9:30am to 5:00pm Fridays. Some banks have started opening on weekends and longer hours, but at selected branches only.
Some of the major banks are: