Sending money to Australia — how to pay as little as possible

Sending money internationally may seem simple, but it involves at least three different costs — and most people only notice two of them. The difference between doing a transfer well or poorly can mean hundreds of dollars with every transaction. This guide explains how each cost works and which option is best for each situation.

The three costs of an international transfer

Every international transfer has, in practice, three cost components. Understanding each one is essential to comparing providers correctly:

Comparison of the main providers for international → Australia transfers

Payment from your home country: varies by provider and country. Receipt in Australia: Australian bank account with BSB and account number.

Simulation: sending the equivalent of A$5,000 to Australia

The example below illustrates the real difference between providers. Amounts are approximate and vary with the daily exchange rate — always simulate before transferring.

⚠️ Illustrative figures based on a hypothetical exchange rate. Rates vary daily. Always simulate on the platforms before transferring.

Taxes on international transfers — what you need to know

Depending on where you are sending money from, your home country may impose a tax on international remittances. These taxes are charged by all providers without exception — the only thing you can control is choosing a provider that is transparent about them and does not hide additional costs on top.

⚠️ Transfer taxes can be changed by government decree at any time. Always verify the current rate in your home country before transferring.

Practical strategies to reduce transfer costs

1. Avoid small, frequent transfers

Each transfer incurs a service fee plus any home country taxes on the full amount. Transferring the equivalent of A$500 ten times costs more than transferring A$5,000 once — the tax applies to the same total, but the fixed fee is paid ten times.

2. Use Wise as a foreign currency account

The Wise multi-currency account lets you hold a balance in Australian dollars (AUD) and your home currency at the same time. You can transfer when the exchange rate is favourable, hold AUD in your Wise account, and use the Wise card to pay expenses in Australia without paying a spread on every transaction.

3. Always compare before transferring

Exchange rates fluctuate throughout the day. An hour can make a 0.5–1% difference in the final amount. Use the simulators on Wise, Remitly, and Remessa Online with the same amount and compare the AUD that will arrive before confirming any transaction.

4. Avoid using a home-country credit card for Australian expenses

Using a credit card from your home country to pay Australian bills typically adds both a transfer tax and your card issuer's spread (usually 2–5%). Open an Australian bank account and use an Australian card or your Wise account for local spending instead.

5. Never exchange currency at the airport

Airport currency exchange desks have the highest spreads on the market — often 8–12% above the mid-market rate, plus any applicable taxes. If you need cash, exchange in advance through an online provider or withdraw from an Australian ATM with a debit card (check your bank's fees).

What you need to receive money in Australia

To receive a transfer from Wise, Remitly, or any international provider in Australia, you will need an Australian bank account with a BSB and account number.

What to do with money still in your home country

For anyone moving to Australia, a practical question is what to do with money still at home — an emergency fund, savings, or supporting family members who depend on you.

Keeping your home-country bank account active is recommended. You can use it to maintain a home-country credit card (for online purchases in your local currency), receive income from your home country (rental income, dividends), and keep a buffer for family emergencies. Many digital banks have functional apps even when you are abroad and charge lower maintenance fees.

When to transfer — the exchange rate matters

Exchange rates fluctuate constantly and can move 10–20% over the course of a year. For large transfers (proof of funds for a visa, course payment, rental bond), it is worth monitoring the rate for a few days before transferring.

Transfers through friends, acquaintances, or informal currency swaps — real risks

A practice common among immigrant communities is arranging with someone: you deposit money in your home country to a contact, and that contact hands you Australian dollars here — or vice versa. This is known as an informal peer-to-peer currency swap (sometimes called "dólar cabo" in the Brazilian community, or a hawala-style arrangement). It seems simple, cheap, and hassle-free. But the risks are serious.

Why people still do it — and why it is not worth it

The logic is straightforward: avoid the transfer tax and the exchange rate spread. On a large transfer, that can represent a real saving. But the risk is not theoretical.

Transferring via Bitcoin or crypto — is it legal? What are the risks?

Using Bitcoin or other cryptocurrencies to move money between countries is an option many people consider. The answer on legality is more complex than a simple yes or no — and the regulatory environment has changed significantly in recent years.

What is generally permitted

Buying cryptocurrency in your home country, transferring it to a wallet in Australia, and selling it for Australian dollars is technically possible and not prohibited by law in many jurisdictions. In Australia, the ATO treats crypto assets as property subject to capital gains tax — not as legal tender. The use itself is not a crime. The problem arises when you omit the transactions from your tax filings, or when you use crypto to disguise an illegal currency exchange.

What requires declaration

Practical risks of using crypto as a transfer method

Person-to-person transfers — the tax risk most people miss

Even within legal platforms, there is a tax pitfall many people do not know about: when you receive money from another person — whether via bank transfer, crypto, or any other means — your home country's tax authority does not automatically know whether it is a transfer or income.

For the tax authority, a bank transfer received could be interpreted as a loan received, a gift, informally paid services, undeclared wages — or any other form of taxable income. If your wealth cannot be explained by what you declared, you may face an audit.