Banking, Taxes and Finance in Perth

When moving to Perth for work, you’ll need to set up an Australian bank account and superannuation fund and learn how to pay taxes. Here’s our guide to banking, taxes, and finances in Australia to help you get your head wrapped around the local system.

How to open an Australian bank account for non-residents

Many financial institutions in Australia offer the option to open a bank account before you arrive in Perth. However, if you don’t get around to opening an account before you get to Australia, it’s a straightforward process to do so once you get here. Typically, you’ll need to provide your passport along with one other form of ID, such as a bankcard, driver’s licence, birth certificate or student ID.

Banks in Australia offer different types of accounts for different needs, so it’s worth doing some research to find one that’s right for you. You can choose to only open a standard everyday transaction account, or you can open additional accounts such as a high-interest savings account, term deposit, or a credit card account. Keep in mind that fees, interest rates, and benefits differ depending on the bank you choose.

Some of the main Australian banks include:

•       ANZ

•       Westpac

•       Commonwealth Bank

•       National Australia Bank

•       St George

•       Bankwest

•       ING

•       Bendigo Bank

There are also smaller financial institutions throughout Perth that may offer lower fees or higher interest rates, but they usually have fewer branches and sometimes have restrictions on who can open an account. Read more about credit unions, building societies, and mutuals.

You can still access money from your overseas bank account from ATMs in Australia, although the ATM provider and your home bank will likely charge a fee. If you want to transfer money to or from Australia, most banks will allow you to transfer money internationally for a fee, or you can use a service like TransferWise, which tends to be cheaper than transferring through a bank.

Paying tax in Australia

After arriving in Perth, you should apply for a Tax File Number (TFN) from the Australian Tax Office (ATO) as soon as you can. You can use your work address if you don’t yet have a home address – just make sure to update your address with the ATO when it changes.

It can take up to 28 days for your TFN application to be processed, and once it’s issued, your employer will be able to deduct the appropriate amount of tax from your salary payments. If you don’t provide a TFN, you’ll automatically be taxed at the highest tax bracket. Non-residents are taxed at a different rate from residents, so it’s best to work out if you’re a resident for tax purposes as soon as possible – your employer’s HR or accounting department may be able to assist.

Australia’s financial year runs from July 1 to June 30, and individual tax returns are due by the end of October. At the end of the financial year, you employer will issue you a document known as a group certificate, which is a summary of your earnings and taxes paid throughout the year. You can use this information to fill out your tax return. Tax returns can be filled out either online or on a paper copy (available to order online).

Superannuation

In Australia, all employees must have a superannuation fund – including temporary residents. Your employer is legally obligated to pay 9.5% of your salary into your super fund on your behalf. Usually, this payment will be made in addition to your base salary rate. The money deposited into your superannuation is then invested –usually in a mix of shares, property, and cash – by your fund’s trustee. You can access your accrued superannuation earnings either at retirement age or if you’re an eligible temporary resident departing Australia permanently, which will incur a tax.

You can choose your own superannuation fund or use the default super fund offered by your employer. If you don’t nominate your own fund when starting a new job, you’ll automatically have an account set up with your employer’s default fund. Different funds offer various benefits and investment options, so it’s best to do some research to find one that suits your circumstances.

Everyone has the right to select their superannuation fund of choice, or you can use the default superannuation fund of your employer. This will be set up on your behalf when you start working for them (you will usually have some time to provide the details of your personal choice before the first superannuation payment is made). Consumer rights organisation CHOICE offers more information and a guide to help individuals select their super fund.

It’s important that you:

  • Know which superannuation fund their employer is contributing to on your behalf
  • Retain any superannuation records – you will usually be sent statements quarterly or bi-annually
  • Find out whether they can take your super contributions with you if leaving Australia permanently

To find out more about superannuation in Australia, you can call the Australian Tax Office Superannuation information line on 13 10 20 (from Australia) or +61 3 9268 8332 (from overseas), or go to the ATO website.