Australia is a popular destination for people around the world, including those originating from the USA. With a US expat population of over 100,000 and many more US citizens visiting Australia for a working holiday, to study, or simply for a long-term vacation backpacking through the country, there are a number of reasons one might be looking to send money to the US from Australia.
Whether you’re living in Australia and looking to transfer money to an account back home, or you’re sending a payment to someone in the US as a gift or payment, there are a number of options available to help you get your money to its destination safely, quickly, and cheaply.
AUD to USD Currency Transfers
Whether you are sending AUD to the United States for personal or business reasons, millions of international remittances are sent to the United States every year. With an estimated population of 331 million people and the world’s highest GDP, it is safe to say the United States is a global superpower. As the number of money transfer specialists providing services from Australia to United States continues to rise, it has never been easier to send money to the US safely and securely.
Best Providers for Sending Money to United States from Australia
When considering how to send money United States from Australia there are some key aspects of the transfer that will impact the best provider for your needs.
There are plenty of international money transfer providers for Australia to United States. The fastest provider is WorldRemit. The cheapest transfer provider we found is Wise at 0.9% Above Mid-Market Rate.
If you’re looking for the best combination of price, speed, and reliability we recommend using XE when sending AUD – USD.
This means that by using XE for online money transfers to United States from Australia, you are likely to save on transfer fees and benefit from fast speeds – so your recipient will get more money and have it delivered in less time.
Alternatively, if you are unable to access XE for any reason, our comparison engine has found Wise and WorldRemit also to be very good options when sending AUD to USD.
If you are looking to make an international transfer, in some cases you might need to know the SWIFT/BIC code of your recipient in United States. If you’re unsure what it is, check out our SWIFT calculator to figure out the correct SWIFT code in United States.
Top providers for sending money to the USA from Australia:
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Provider
Description
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XE Money Transfer
XE is a large and reputable company with no transfer fees
How to send money to the United States from Australia
Sending money to the United States from Australia is a relatively seamless process, and typically follows the same basic steps:
Choose a provider: Use our comparison engine to find the best service for sending your money to the United States, whether that’s based on cost, speed, security, or a mix of everything.
Register your details: Next, you’ll need to register for a free account with the company of your choosing, verify your identity, and get your account set up with your payment details.
Enter your transfer details: Enter how much you want to convert from AUD to USD and if you’re happy with the fees and exchange rate you’re given, you can start your transfer. Make sure you have your recipient’s details (name, bank details, address etc) to hand to avoid delays.
What do you need to transfer money to the United States?
Whether you’re sending money from Australia or anywhere else in the world, you’ll need a few details to hand for a hassle-free money transfer. This will typically include:
Your own account details, including your bank details or card details depending on how you’ll be paying for the transfer
The sum you are converting into USD
A valid photo ID (such as a passport or driving license) to verify your identity
Your recipient’s details, including their name, address, bank details/other details needed
Transfer USD to AUD
The USD to AUD exchange rate regularly fluctuates, especially over the last decade, with notable spikes in 2016 and 2020. Like most currency pairings, geopolitical and financial factors have an almost immediate knock-on effect. We would always recommend using an international money transfer provider when transferring money from USD to AUD, as these companies offer exchange rates which are competitive and contain high profit margins. This guide will provide you with the knowledge you need to make a well-informed decision when converting your hard-earned USD into AUD.
The US Dollar and Australian Dollar have very different origins, despite both sharing the Dollar title. The USD/AUD rate refers to the amount of US Dollars needed to buy one Australian dollar. For example, at the time of writing, $1.00 USD/$1.22 AUD.
A brief history of the US Dollar
The United States Dollar is the most commonly used currency by tourists, even though it is officially only legal tender is 8 countries: America, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, East Timor and Zimbabwe. Dollar notes were created in the late 1700s, but the first banknotes were not issued until 1862. There are 7 banknote denominations: the 1, 2, 5, 10, 20, 50 and 100 dollar bill.
A brief history of the Australian Dollar
After discovering gold deposits in New South Wales in 1851, gold coins began to be used as currency across Australia. It was seen as the most trusted form of legal tender for many years and even when banknotes were introduced, the majority of Australians opted for coins over notes. It wasn’t until 1910, after The Australian Notes Act was passed, when the Australian Pound was formerly introduced as the official currency.
It was 1966 when Australia transitioned over to using Dollars, rolling out the 1, 2, 10 and 20 dollar bills first. By 1984, all denominations of AUD were available, including the 50 and 100 dollar bill. Globally speaking, the Australian dollar is a relatively young currency – less than a century old – especially compared to the US Dollar and the Pound Sterling, which is the oldest currency still in use.
Forecasting the USD to AUD rate
A common question posed by those looking for the optimum foreign exchange rate is: “What if this rate improves?” This age-old query is the reason why many people are reluctant to commit to what appears to be a good quote when they find one.
At the time of writing, the USD/AUD exchange rate was at a 0.40% high. As history tells it, the highest USD/AUD recorded rate was 1.488 USD/AUD in August 1974; and the lowest recorded rate was 0.489 USD/AUD in March 2001.
The economic health of any country can be measured by their foreign exchange rates, and a number of factors impact this including:
Inflation and interest rates rates
Travel and tourism
Geopolitical stability
The value of imports and exports
Because of the unpredictable factors listed above, it is ultimately impossible to predict the direction of currency pairings, and as a particularly volatile rate, we instead recommend reviewing the historic USD/AUD rate and how it has changed over different periods of time.
Finding the best USD to AUD rate
Once you know what impacts the USD/AUD rate, you will know what to look out for when searching for the best version of this currency pairing.
Anyone who goes directly to their bank for a USD/AUD quote is likely to be disappointed with what they receive. Typically, your bank will not offer the mid-market rate which is found online (we recommend using XE to view the live mid-market rate) and they often add excessive markups to currency conversion requests.
This is where we come in. We have created a comparison tool which is designed to find you the best available exchange rate for your currency pairing. In this case, we recommend monitoring the difference between the live rate displayed on XE, and the quote which is provided to you, as any hidden fees can be found here.
How to secure the best USD to AUD rate
A reliable and sure-fire way to secure the best USD to AUD rate is to avoid excessive costs and fees included in international bank transfers. These can include service charges, transfer fees, profit margins and exchange rate markups. However they are referred to, they are bad news for your wallet. In the interest of getting the most for your money, we recommend international money transfer specialists and our website is the best place to find the provider which suits your individual requirements.
USD/AUD with Azimo:
Azimo has offices in the United States, and understands the volatility of the USD/AUD rate. The company offers low transfer fees and competitive exchange rates, making it a popular choice for customers arranging this particular international money transfer. Payments method with credit or debit cards can be processed instantly, with cash pick-ups available the same day.
Will I be taxed for sending money to United States?
Transfers amounting to less than $100,00 USD which are categorised as a “financial gift” will be not taxed, but should be reported to the IRS.
If the amount exceeds $100,000 the recipient will need to declare this amount and complete an IRS Form 3520: gifts from a business or a partnership that exceed $15,601 also must be declared via this form. The IRS Form 3520 is filed annually, used to report transactions received from overseas, including large gifts or bequests, such as stocks, bonds and cash. Depending on the size of the transfer, the recipient in Australia will not always be required to pay taxes on this amount, however, failure to include this information in their annual tax return filing could result in a $10,000 fine. To learn more about taxation laws associated with overseas payments, read our guide: Are Money Transfers Taxed?
Which authorities regulate and monitor money transfers sent to United States?
In 2010, following the global financial crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act was introduced by the Obama administration, to protect the American economy.
This legislation is enforced by the Consumer Financial Protection Bureau (CFPB) and they are the organisation responsible for monitoring financial markets and enforcing certain rules to protect consumer rights. The CFPB is responsible for reviewing all international money transfers sent over $15.00 USD.
How much do banks in United States charge for receiving international money transfers?
Incoming international payments sent to banks are often accompanied by landing fees. These fees can vary and largely depend on the country the payment is sent from, the currency and the transfer size. Personal and business bank accounts incur different fees for receiving money transfers too. For example, Bank of America fees range from $15 – 45, Wells Fargo fees typically cost between $15 – 30 and CitiGroup transfers incur fees of $10 – 35 on average. Customers can read through our Bank Reviews to find out more about the various charges issued by major US banks.
How much money can be transferred from Australia to United States?
The amount of USD you can receive from Australia will largely depend on the money transfer service you are using. There are providers that specialise in smaller remittance payments, and providers who specialise in larger transfers.
You should also check if there are any government regulations pertaining to the amount of USD that can be received in United States or sent from Australia before making your transfer.
Can I send money with MoneyTransfers.com?
No. MoneyTransfers.com is a comparison website aiming to match you with the best money transfer providers for your needs when transferring money online.
How to find the best exchange rate?
Finding the best exchange rate is crucial to maximising the money received on the other end. Usually, you will receive better exchange rates with money transfer provider compared to a traditional bank. Here’s are a few tips to find the best exchange rate online:
Start looking early: various providers will offer different exchange rates on different days, start looking as early as you can to identify the best provider for your currency pair.
Pay attention to the current exchange rate: staying up to date with the current exchange rate will give you the advantage to buy and sell on time. Currencies fluctuate daily due to supply and demand, so checking it frequently is advised to get the best rate possible. Alternatively, you can sign up with our price alerts to know when your currency reaches the desired price.
Avoid using your bank: banks are trustworthy, reliable and convenient, but they do not provide value for money. They charge high fees and usually have higher costs compared to the money transfer provider. Some money transfer companies will even provide a mid-market rate.
How we compare?
What do we mean by the top provider?
The top provider is the money transfer service that we believe is the most suitable for the country you’re sending money to. In order to keep our service free we factor in the commercial agreements we have with partners into this ranking.
How do we choose providers to display?
We make sure that each table displays the most relevant brands to the country you are sending money to and from. We consider many factors when choosing the providers to display in the table.All of the providers we display are fully regulated to provide money transfer services in the jurisdiction you are searching, relevant regulatory authorities are the FCA, ASIC, Fincen, FINTRAC & AMF. Alongside being regulated the services are manually checked by our team for both quality of service and online trust from such platforms like Trustpilot and Google reviews.We base our rankings primarily on the quality of the service provided, the benefit to the consumer and to keep our service free – the commercial agreements we have.
How do we order our comparisons?
We are affiliated with some of the partners displayed in the tables. However, the order of the providers is based on the quality of the service for the particular country corridor followed by the commercial agreement in place. You don’t pay any extra and the deal you get isn’t affected by our commercial agreement with the money transfer provider. We may receive a commission when you click through to a listing or when you make a transaction.We aim to find the balance between the quality of the service, customer satisfaction and the commercial agreements we have, and continue comparing services in a transparent way.If you have any questions about our listings, please don’t hesitate to email us at contact@moneytransfers.com
What can I use money transfers for?
It might look confusing and unusual to use anything other than a bank to send money for any reason other than a generic transfer, however, there are many more ways to use money transfers.
For instance, you can sign up with a money transfer provider to receive your pension abroad. Many money transfer companies have dedicated teams and resources for that particular reason.
You can save a lot on fees if sending large sums at once. For example, if you’re looking to buy a house abroad you can benefit from the better exchange rate and lower fees by using a money transfer company compared to a traditional bank.
You can use money transfer services for the same reasons you use your bank, but with lower fees, quicker delivery times and better exchange rates. If you are just getting started you can read our selection of guides to help you grasp on the basics.
Can I trust MoneyTransfers.com comparison?
Yes. We’re a team of money transfer experts working tirelessly comparing providers to find you the right provider for your transfer needs. Find out more about us here
Artiom is a marketing graduate from the University of Portsmouth, Artiom’s primary experience is in SEO but he has a broad knowledge of all facets of digital marketing. He optimises the organic experience on MoneyTransfers.com with the content team, manages and creates unique marketing tactics, and generally supports the overall growth of the website.