Financial / Investment

There are various types of lending institutions in Australia: Banks, Building Societies, Credit Unions and private lenders.

Most of these provide a wide range of financial services including the day to day retail banking facilities such as credit cards, deposits, personal and other loans.

They are very rigid in their lending criteria and decisions are made at head office level rather than with the first person of contact.

For day-to-day savings accounts and business loans, we work together with some major institutions to meet your needs.

FINANCIAL ASPECTS

The Banking System
Australia has an advanced banking system, with various types of institution: large, Australia-wide banks, smaller state-specific banks, a number of credit societies/credit unions and a few other financial organisations, such as insurance companies who have diversified into banking. Banking Facilities

Each bank will offer their own mix of accounts and facilities, but here is a list of typical facilities offered:

Transaction Account for day-to-day transactions. Usually zero or very low interest paid for credit balances.
Savings Account which can be "at call" (ie. no notice required to withdraw funds), or a fixed notice period for withdrawel or a term deposit (fixed interest rate, fixed term).
ATMs (automatic teller machines) - are located at most shopping centres. Usually free if you use a machine linked to your bank's network, otherwise a fee can be charged.
EFTPOS (electronic funds transfer at point of sale) - ie. paying for goods using your bankcard. Most banks and retail outlets offer this facility and the funds may be taken from your current, savings or credit account. The larger retailers normally let you draw extra cash out as well, with no charge.
Credit Cards Mastercard, Visa and American Express cards are commonly available, with a variety of features, such as zero annual fee, so many days interest-free, rewards points etc.
Internet Banking is now offered by most banks, enabling you to check balances, transfer money between accounts, pay bills (BPAY system) and so on
Telephone Banking

When you arrive
Within six weeks of arrival in Australia, you need to go into the branch where your account has been opened and identify yourself - take your passport. If you're staying in short-term accommodation, you can give this as your contact address, but you don't need to provide any further proof of address. You will then be issued with your bank cards and can be registered for telephone and internet banking. If you have your Tax File Number, give this to the bank so that your interest is paid without tax being deducted

Can I open a bank account in Australia before I arrive?
It depends on where you are arriving from. If your home country operates exchange controls, you may find it difficult. If not, you should check with your current bank to see if it has any special links with an Australian bank (eg some UK banks are owned by the National Australia Bank), or check with any Australian banks who operate in your current country of residence if they will help you to open an account with one of their Australian branches.

Overview of Tax

Financial Year
The Australian financial year is from 1 July to 30 June. Tax Returns

By 31 October each year, all Australian taxpayers must complete a tax return - "the TaxPack". This is a self-assessment system, whereby each taxpayer declares their income and allowances to arrive at their own tax liability.

Tax File Number (TFN)
Every Australian resident with earnings from employment or investment needs a Tax File Number (TFN). You should apply for your TFN soon after arrival - either at a Tax office, a Centrelink office or online. Your TFN will be allocated and sent to you within 10-28 days, but if you get work in the meantime, just tell your employer you have applied, so you don't get taxed on a higher rate. Australian Business Number (ABN)

If you run a business, you will normally be required to register for an Australian Business Number. You will also have to register for the Goods and Services Tax (GST) if your turnover exceeds $50,000 per annum

Introduction to Superannuation

Superannuation (or "super" for short) is the process of accumulating a fund for retirement. Although the Australian government does provide an Age Pension, most people expect a higher income in retirement. The Government has introduced tax incentives and employment laws to encourage contributions to super.

Mortgages
As in many other countries, Australia has a large selection of banks, financial institutions and "securitised lenders", each offering a wide variety of home loan products. Mortgage brokers are often used to assist with finding an appropriate lender. Usually this is a free service to the borrower, in that the broker's commission is paid by the lending organisation