Send Money To Australia
Rate: 1.4503*
| Payment Options | Speed |
| Debit Card | Minutes |
| Credit Card | Minutes |
| Bank Transfer | Minutes |
- First 3 Transfers Free
- Transfer Money at Any Time
- Low Costs
Rate: 1.4455*
| Payment Options | Speed |
| Debit Card | 2 Days |
| Bank Transfer | 2 Days |
- No transfer fees
- 5/5 'excellent' rating on TrustPilot
- £25 amazon gift card when you refer a friend
Rate: 1.3517*
| Payment Options | Speed |
| Bank Transfer | 3-5 Days |
| Debit Card | 3-5 Days |
- Internationally renowned bank
How To Send Money To Australia
Sending money to Australia is simple and easy. Follow these steps to get started.
Find a Trusted Provider
Sign Up and Deposit
Transfer Money
Ways To Send And Receive Money In Australia
There are multiple ways to easily send and receive money in Australia but these will largely depend on the provider you decide to use. Below you will find everything you need to know about sending and receiving money.
Ways to Send Money to Australia
Depending on the country you are sending from, there are several options available such as bank transfers, money transfer service providers, PayPal and other channels. The following are the channels commonly used to send money to Australia.
International Wire Transfers
Banks have been the traditional channel for sending money to Australia. The safety and ability to transfer high-value amounts to recipients in 'the land Down Under', makes them attractive to most people. However, banks transfers come with challenges of their own.
Despite some banks in the United States and the United Kingdom having agreements with Australian banks, the cost of transfers is still high. Some banks take a longer time to transfer money and give low exchange rates. For instance, some banks in the UK charge fees of up to £40 per transaction.
Money Transfer Services
Money transfer operators (MTOs) offer the best ways to send money to Australia. They leverage their extensive network to give you fast, affordable and convenient money sending options.
Some of the providers to use are Western Union, MoneyGram, Ria, Xoom, WorldRemit and Transferwise. Setting up on these MTOs is simple. You’ll have to sign up for an account online, choose the sending method, pay for your transfer and send.
There are three main ways of paying for your transfer:
- Credit card-This is the fastest way, but a little pricier because of third party fees
- Debit card -This is the best alternative to a credit card. It combines speed and low-cost transactions
- Bank debit or transfer -This method is the cheapest but takes long to effect the transaction.
Money transfer services to Australia can either be bank transfers or cash pickups. The choice of what to use depends on your preferences.
Bank Transfers -These are done on the MTO platform directly to the recipient bank account. They are faster and cheaper compared to inter-bank transfers. Most providers support all 53 banks in Australia.
MTO to bank transfers can take up to two days, but when you transfer in Australian dollars (AUD), the recipient can get the money within 24 hours.
Cash Pickup – You can send money to your loved ones in Australia through the payout networks of the different providers. Xoom has partnered with Ria in Australia to widen its network. Currently, it has 59 locations.
MoneyGram has partnered with 600+ 7-Eleven convenience stores, Travel Money Oz foreign exchange retailers, and 350+ United Petroleum service stations. Cash pickups are instant, especially when the transfer is paid using a debit or credit card.
What’s Needed to Send Money to Australia
If you want to send money to Australia, you’ll need to check that you have everything that is required by the providers. The Australian government is strict on money laundering. They have a law known as the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
Here’s the information you’ll need to send money to Australia using money transfer service providers:
- A government-issued identity card. You could use a social security card, passport or a driving licence when sending from the United States
- The amount you want to send
- The recipient’s name as it appears on their official documents such as Australian passport, Australian citizenship certificate, Australian Certificate of Identity, and Medicare card.
- The phone number and physical address of the recipient
- If making a bank transfer you’ll have to give the BIC/SWIFT code, BSB (Bank-State-Branch) number, and the account number
Other providers may request additional information such as your relationship with the recipient, the source, and purpose of the money.
Common Reasons for Sending Money to Australia
Australians in the diaspora have a lot of obligations, projects, and business interests at home. The following are some of the reasons why Australians send money home.
Family Upkeep
The cost of living in Australia is higher than in many countries around the world. Housing and fuel expenses cost more than in the United States and the United Kingdom.
On average, the monthly living cost per person is $2,835 while for a family is $5,378. Households without a reliable source of income may need support in the form of diaspora remittance.
Business Interests Back Home
As of 2014-2015, there were a total of 2.1 million businesses in Australia. Among these businesses are those owned by Australians in the diaspora. From time to time, cash flow constraints may occur. Part of the remittances may be to pay workers, short-term debts, capital addition for new projects and so forth.
Savings and Investments
Most Australians abroad run businesses or are in high-level employment. Some of the earnings they get are channelled back home into real estate investments, financial assets investments like shares and bonds or in structured savings accounts.
Debt Repayments
According to the OECD Data released in 2015, Australian households are the most indebted globally. Most of the debt is in the form of car loans, house loans, and credit cards. Depending on the way the debt is structured, it may span years or even decades. Part of the money sent home could be for repaying such debts.
Social Contributions
Whether it is weddings, charity or festivities, many Australians in the diaspora want to be involved in activities back home. Depending on the frequency and budget sizes of the events, the amounts sent can be substantial.
Why Send Money with a Money Transfer Service?
When sending to Australia, you have every reason to look out for a means of transfer that is cheaper, faster and convenient to the recipient. Money transfer service providers can give you these benefits and more. Here are some of the top reasons why your next transfer should be through an MTO.
Favourable Exchange Rates
Banks are known for cashing in on exchange rates spread. MTOs, on the other hand, give their customers real exchange rates also known as mid-market rates. As the sender, such rates give you more Australian dollars per unit of the source currency.
You can also lock in the exchange rates for a given period. This possibility enables you to avoid the unpredictability of currency swings. Transferwise offers this service to its customers.
Geographical Spread
Irrespective of where you are sending money to in Australia, you’ll find an agent where the recipient can collect their money. MTOs have extensive payout networks in every state in Australia. Western Union, MoneyGram, and Peramax have more than 1,000 locations. Hai Ha and Ria have over 200 locations.
Low Transaction Fees
MTOs earn their revenue from service margins. However, they also understand that basing a business model on margins alone is unsustainable.
The low transaction fees they charge enable many people to send money. This approach increases their volumes and subsequently, revenues. The only transaction fees that are hard to kick out are the third party charges. For instance, if you send money through a credit card, the card company charges you additional fees.
Faster Transfers
Banks have been instrumental in ensuring that money gets across to the recipient in good time. However, the 5-7 days and occasional delays in the banking system has often led to missed opportunities and losses.
Money transfer service providers can help you send money to your family in Australia in less than an hour. Deposits to banks can take anywhere from 24 hours to 2 days.
Multi-Currency Support
MTOs such as MoneyGram, Xoom, TransferWise and Western Union operate in hundreds of countries. Almost all the countries where the 577,000 diaspora Australians are, have an MTO network.
There are no currencies MTOs cannot translate to the Australian dollar. This support is crucial, especially for Australians living and working in far-flung areas in the world.
Simple to Setup
Are you tired of the lengthy KYC procedures and document after document required to sign up for an account? Well, MTOs give you a reprieve. Setting up on their platforms is a matter of minutes.
All you need is your name, email address and phone number to open an account online. Then, you have the option of paying for your transfer in-store or online. When you choose to pay online you can use a credit card, debit card or bank transfer. Western Union and MoneyGram allow you to start the sending process online and complete it in-store.
Things to Consider When Sending Money to Australia
Australia is a mixed economy with the highest median wealth per adult. Their currency is stable, but the recent economic shakeups may change the landscape. The following are some of the factors you should look at when sending to Australia.
- Taxation - Remittance inflows are not considered income in Australia and are therefore not taxed. However, if the money is invested in interest-bearing instruments, the returns are taxable. Gifts are not taxed in Australia. With that said, not every inflow from a friend or relative abroad is considered a gift. If the classification changes, the remittance could be taxed. Money received that is AUD 10,000 and above must be declared. Get an accountant or tax professional to help you in case you need guidance.
- Exchange Rates Movement- Australia has a floating exchange rate regime. The movement of the currency is determined by market forces of demand and supply. With the latest trade wars between the United States and China, Australia is among the countries likely to be hit hard. If you are looking at sending money to Australia, you need to look at the currency movements and time your remittance when the currency is on a dip. This will give you more Australian dollars for a unit of the source currency.
- De-risking- Since 2014, small remittance companies have been driven out of business following blanket closures of their accounts in Australia. This was part of the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) measures. This trend has resulted in increased costs and reduced competition. Therefore, it is important to ensure that the MTO you are using is in right standing with the law.
The onus is on you to choose the method of money transfer that will give you the most benefits. Even money transfer services have variations among themselves. Don’t be caught unawares, get the right information at the right time to help you make the right decision.
Your Questions Answered
The fastest way to send money there is through Ria Money Transfer. Make sure you are using the fast option, otherwise the transfer will not be fast at all. With Ria Money Transfer’s fast option, you can expect your money to reach its Australian destination in a matter of minutes. The cost of using this faster service is also quite reasonable when compared with slower, more expensive options.
The cheapest way to send AUD is through OFX. OFX doesn’t charge a stated, upfront fee. Their conversion costs are very reasonable as well, especially when you send larger amounts of money. It should be noted that OFX doesn’t process transfers of less than a certain amount, but from here their rates get better. On the lower end, you will pay them just 1% of the transfer, but this rate slides down to 0.4% as the amount of money being transferred increases.
If you cannot abide by a minimum transfer amount, Ria Money Transfer (the slower version) and TransferWise are both competitive offers. The latter is usually more expensive (also depends on the amount being sent), but the money will be delivered faster with TransferWise.
The cheapest way to send AUD is through OFX. OFX doesn’t charge a stated, upfront fee. Their conversion costs are very reasonable as well, especially when you send larger amounts of money. It should be noted that OFX doesn’t process transfers of less than a certain amount, but from here their rates get better. On the lower end, you will pay them just 1% of the transfer, but this rate slides down to 0.4% as the amount of money being transferred increases.
If you cannot abide by a minimum transfer amount, Ria Money Transfer (the slower version) and TransferWise are both competitive offers. The latter is usually more expensive (also depends on the amount being sent), but the money will be delivered faster with TransferWise.
The current exchange rate for the Australian Dollar (AUD) is 1.4613 AUD per American Dollar, as of the time this was written. The average exchange rate for the AUD was 1.4675 AUD per USD over the last 90 days. The AUD reached a low of 1.4459 AUD per USD, and a high of 1.4908 AUD per USD over the last 90 days.
The average volatility rate of the AUD was 0.46% over the last 90 days. This is a higher volatility rate, and the AUD has fluctuated significantly against the USD during the last year. You can reasonably expect the currency exchange rate to fluctuate somewhat actively going forward, barring any unforeseen circumstances.
The overall best way to send funds to Australia is through Ria Money Transfer. For the purposes of expedience, we recommend you pay a bit more for the faster option. Their fast option still offers a great balance between speed and cost.
Looking to Send Money Somewhere Else?
Sending money anywhere else in the world is as easy as sending money to Australia. If you're looking to send money to another country, here is the list of the most popular destinations.
