Australia - Currency & Exchange

If you've travelled down from Southeast Asia you'll find Australia expensive on a day-to-day basis, but fresh from Europe or the US you'll find prices comparable or cheaper. Australia is well set up for independent travellers, and with a student, YHA or a backpackers' card you can get discounts on a wide range of travel and entertainment.

Australia's currency is the Australian dollar, or "buck", divided into 100 cents. Plastic notes with forgery-proof clear windows come in $100, $50, $20, $10 and $5 denominations, along with $2, $1, 50¢, 20¢, 10¢ and 5¢ coins. There are no longer 1¢ or 2¢ coins, but prices are regularly advertised at $1.99 etc and an irregular bill will be rounded up or down to the closest denomination.

Exchange rates fluctuate around an over-the-counter rate of A$2.90 for £1; A$2 for US$1; A$1.20 for CDN$1; and A$0.80 for NZ$1.

Travellers' cheques, credit and cash cards 

Travellers' cheques are the best way to bring your funds into Australia, as they can be replaced if lost or stolen (remember to keep a list of the serial numbers separate from the cheques). Australian dollar travellers' cheques are ideal as theoretically they're valid as cash and so shouldn't attract exchange fees, though smaller businesses may be unwilling to take them, and some banks do try to charge commission when exchanging them. Cheques in US dollars and pounds sterling are also widely accepted, and banks should be able to handle all major currencies. It's worth checking both the rate and the commission when you change your cheques (as well as when you buy them), as these can vary quite widely – many places charge a set amount for every cheque, in which case you're better off changing relatively large denominations. You'll need a passport to cash travellers' cheques.

Credit cards can come in very handy as a backup source of funds, and they can even save on exchange-rate commissions. They can also be used to leave a deposit – for example, for a rental car or a hotel booking – even if you settle the final bill with cash. MasterCard and Visa are the most widely recognized; you can also use Amex, Bankcard and Diners Club. In addition, with an international debit card you may be able to pay for goods via EFTPOS and gain direct access to your home funds via ATM machines displaying the Cirrus-Maestro symbol. As a flat rate is charged for these transactions, this can work out to be cheaper than travellers' cheques for large sums – check with your bank before leaving.

Banks and exchange 

Closures of local banks throughout much of Australia means you will no longer necessarily find a branch of one of the main banks in every town, though there will be a local agency which handles bank business – usually based at the general store, post office or roadhouse – though not necessarily a 24hr ATM machine. The best policy is always make sure you have some cash on you before leaving the bigger towns, especially at weekends. The major banks, with branches countrywide, are Westpac, ANZ, the Commonwealth and the National.

Banking hours are Monday to Thursday 9.30am to 4pm, Friday 9.30am to 5pm, though in country areas some agencies will be open later, and some big-city branches might also have extended hours; autotellers or ATMs are generally open 24 hours. Bureaux de change are only found in major tourist centres and airports, so make sure you exchange your currency during banking hours. All post offices act as Commonwealth Bank agents, which means there's a fair chance of changing money even in the smallest Outback settlements – withdrawals at these places are often limited by a lack of ready cash, however, though less remote post offices may have EFTPOS facilities.

If you're spending some time in Australia, and plan to work or move around, it makes life a great deal easier if you open a bank account. To do this you'll need to take along every piece of ID documentation you own – a passport may not be enough, though a letter from your bank manager at home may help – but it's otherwise a fairly straightforward process. The Commonwealth Bank and Westpac are the most widespread options, and their keycards give you access not only to ATM machines but also anywhere that offers EFTPOS facilities (Electronic Funds Transfer at Point of Sale). This includes many Outback service stations and supermarkets, where you can use your card to pay directly for goods; some of them will also give you cash (ask for "cash back"). However, bear in mind that bank fees and charges are exorbitant in Australia; most banks allow only a few free withdrawal transactions per month (depending on who you bank with – it's well worth shopping around before you open an account), and there are even bigger charges for using a competitor's ATM machine, as well as monthly fees.

International money transfers can be made from any bank in Australia to a nominated bank abroad and cost approximately A$25. Transfers can take anywhere from a few days to several months. For moneygrams, you can make arrangements with either American Express Moneygram