Due to its geographic isolation, Australia has a reputation as an expensive country to visit. While traveling in high season can be pricey, it’s worth it for an unforgettable trip to the Land Down Under.

Travel Money in Australia: Everything You Need to Know

Australia’s official currency and legal tender is the Australian dollar. Also known as the “Aussie,” this small but mighty currency is among the top-traded in the world. It replaced the Australian pound in 1966, when part of the Australian public tried to call the new, incoming currency the “koala” instead of the dollar.

As part of the British Commonwealth, Australian currency depicts the head of the British monarchy. After the death of Queen Elizabeth II, new coins of King Charles III are being minted and will start circulating in 2023.

Australian Dollar Basics

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  • Currency Code: AUD
  • Symbol: $
  • Forms: Paper currency and coin
  • Division: AU$1 = 100 cents
  • Countries of Use: Australia, Kiribati, Nauru, Tuvalu, Norfolk Island, Christmas Island, Cocos Islands
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Denominations

Australian dollars come in paper currency (polymer bank notes) and coins. Here’s the denomination breakdown:

  • Banknote denominations: $5, $10, $20, $50, $100
  • Coin denominations: 5, 10, 20, and 50 cents, $1 and $2
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Australian Dollar Exchange Rates

If you’re looking for a travel destination where you’ll get more bang for your buck, you’ll be happy to hear that at the moment, the United States dollar has a favorable exchange rate with the Australian dollar.

The current exchange rate for US dollars to AU dollars is: US$1 = AU$1.50

For the most part, the Australian dollar is a stable currency that doesn’t fluctuate widely. However, exchange rates vary, so use an exchange calculator to check current exchange rates before and during your trip.

How to Get Australian Dollars

As a widely traded leading global currency, it’s easy to get Australian dollars, both inside and outside of the country.

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Currency Exchanges

If you prefer to get your travel money before entering the country, you can do so at airport currency exchanges or foreign currency exchanges. You can also exchange foreign currency for Australian dollars at the airport upon arrival. These places charge currency-conversion fees.

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Cash Withdrawals at ATMs

Getting Australian dollars in Australia is easy—you can make cash withdrawals with your debit card at an ATM, just like you would at home. You’ll find ATMs throughout the country, especially in major cities like Sydney, Melbourne, and Perth, but if you’re heading to a really remote destination, it can be a good idea to withdraw cash in advance just in case.

It’s best to only take out money in busy, well-populated areas. Practice common sense and be aware of your surroundings when making ATM withdrawals to make sure someone isn’t watching you, and examine the machine for card readers that can capture your debit cards’ data. It’s also smart to check with your bank regarding international transaction fees before you leave.

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Exchanging Currency at a Local Bank

Major US banks, like Bank of America or Wells Fargo, can provide Australian dollars to preexisting bank customers. It’s also possible to get or exchange Australian dollars at large and reputable banks Down Under, like Commonwealth Bank, Australia Bank, ANZ, and Westpac. Some branches may offer currency exchanges for foreign travelers for a fee.

But Australian financial institutions also make it easy for non-residents to open bank accounts. You don’t even need to be in the country to open one. Just provide the bank with information like your date of arrival, what type of visa you have, employer information, and the address where you’ll be staying in the country.

If you find yourself traveling to Australia frequently for work or pleasure, having a local bank makes withdrawing money a breeze, not to mention money transfers, handling leftover currency, and avoiding additional fees.

Cost of Goods and Living in Australia

There’s a common misconception that Australia is a very expensive tourist destination. While traveling during the peak summer season can definitely be pricey, a trip to Australia won’t necessarily break the bank.

Furthermore, even if some things are on the expensive side, Australia boasts a high quality of life. You’ll be traveling around a modern, economically developed country with access to many of the same services and goods you have back at home.

Giving you a sense of what you can expect to pay for some basic goods and services, here’s a price breakdown of some average Australian prices for travelers:

  • Accommodations: AU$100 to $200 per night for hotels, AU$140+ for Airbnb homes
  • Meals: AU$20 to $25 for casual, sit-down dining
  • Day Trips and Guided Activities: AU$100 to $200
  • Taxi Rides: AU$20 to $30
  • Public Transit: ~AU$2 per trip
  • Domestic Flights: AU$300 to$800, depending on destination and time of year

 

Importing and Exporting Australian Dollars

If you are bringing more than AU$10,000 or the equivalent in foreign currency into the country, you’ll need to declare. The same is true for leaving Australia: Amounts greater than AU$10,000 or the equivalent must be declared.

Counterfeit Australian Dollars

If you’re concerned about getting counterfeit money, don’t worry. In 1988, Australia was the first to introduce polymer banknotes as a preventative measure against counterfeiting, and counterfeit banknotes are not a big issue in Australia today; in fact, they’ve been declining since 2015.

All the same, you should only withdraw or exchange money at recognizable and trusted establishments. Make sure to count your cash carefully, as the polymer bank notes can sometimes stick together.

Using US Dollars in Australia

The United States dollar is not considered legal tender in Australia. You’ll need to pay for goods and services with a credit card or Australian dollars in cash.

Using Credit Cards in Australia

If you don’t like carrying a lot of cash around, you’ll be happy to hear that credit card usage is widespread in Australia. Some of the most widely accepted credit cards include:

  • Visa
  • Mastercard
  • Diner’s Club
  • Discover
  • American Express

Contactless payment, such as Google Pay and Apple Pay, is also fairly common, especially in major cities like Sydney and Melbourne. Prepaid travel money cards are also an option. All the same, we recommend carrying some travel money in cash at all times, especially when you’re venturing outside the major cities.

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Credit Card Fees

During your time in Australia, you may be subject to credit card fees. This can include out-of-network ATM fees, foreign transaction fees, and currency conversion fees. For ATM fees, expect to pay around AU$2 (roughly US$1.50) per transaction.

Before heading overseas, you should register a travel plan with your bank and credit card companies so they know you’re out of the country—that way they won’t assume your card has been lost or stolen.

It’s stressful having attempted purchases flagged as fraudulent transactions and losing access to your cards while traveling, so keep your financial institution in the loop on where you’re going and for how long.

Tipping Etiquette in Australia

Coming from the United States, tipping is an expected practice in restaurants, cafes, and other service-oriented industries, like tourism. The same is not true in Australia.

Due to a higher minimum wage, tipping is an appreciated but not mandatory practice in Australia. If you do want to tip your servers and waiters, it’s welcome. The standard amount varies from 10% to 15%.

Goods and Services Tax

Similar to a sales tax in the United States, Australia levies a 10% Goods and Services Tax (GST) on most goods and services across the country. This tax is usually included in the displayed price, so you won’t be paying extra on top of the listed price.

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Tax Refund Eligibility

Under certain circumstances, foreign travelers can get a tax refund through the Tourist Refund Scheme. To be eligible for a tax refund, you must:

  • Bring the goods with you as carry-ons on your plane or ship
  • Purchase the goods within 60 days of departure
  • Spent at least AU$300 in total (including the GST tax) from a supplier with the same ABN (Australian Business Name)

In order to get a tax return, you can’t:

  • Claim services such as accommodations, tours, taxis, and car rentals
  • Ship the goods separately from you (they must be traveling with you on the plane or ship)
  • Claim alcohol (except for wine with an alcohol content of less than 22%)

You’ll be able to claim your refund at the airport, where there are Tax Refund Scheme kiosks.

Preparing for Your Australia Trip

Obtaining a visa is an essential part of planning your trip. At Entriva, we can easily and efficiently help you with every aspect of getting an Australia visa. Start your visa application process.

For more information on other aspects of travel to Australia, including local laws, health and safety, and the possibility of extending your stay, visit our Australia content hub.