Australia has an advanced, deregulated, market economy. It is the 13th largest economy in the world and represents 1.7% of the world economy. The Australian dollar is the world’s fifth most traded currency and is internationally regarded as stable.
Demand for Australia’s exports, principally mining and agricultural products, has remained strong in recent times. This has insulated Australia from many of the economic problems experienced in Europe and America and elsewhere.
The Australian economy has experienced 18 consecutive years of growth since 1992, averaging an annual growth rate of 3.3%. The economy is forecast to continue growing. Unemployment is low, at around 5%.
Australia has 4 of only 8 triple A rated banks in the world. The financial sector is very strong and continues to be stable in the recent uncertain economic times.
The official currency is the Australian dollar. The currency consists of notes in denominations of $100, $50, $20 $10 and $5, and coins in denominations of $2.00, $1.00, 50 cents, 20 cents, 10 cents and 5 cents. In 1991, one and two-cent coins were withdrawn from circulation. Cash transactions are now rounded to the nearest five cents.
Banking in Australia
Australia’s central bank is the Reserve Bank. The Reserve Bank regulates Australia’s commercial banks. There are four of these:
- Commonwealth Bank of Australia (CBA)
- Australia and New Zealand Banking Group (ANZ)
- National Australia Bank (NAB)
- Westpac Banking Corporation (Westpac)
Australia has other financial institutions – building societies and credit unions. These offer many of the same services as banks, but are subject to less strict, state-based regulations.
Opening an account
To open an account with a bank, building society or credit union, you need to show proof of your identity.
Cash dispensing machines, known as Automatic Teller Machines (ATMs), are widespread. It costs nothing to use the ATMs that are operated by the bank with which you have an account. However, you may be charged a small fee to use ATMs operated by other banks. If, for example, you have an ANZ account and withdraw money from a NAB machine, you will incur a transfer fee of about $2.
Many shops and retail outlets have EFTPOS facilities (electronic funds transfer at point of sale). EFTPOS allows you to pay for items by using your credit card or Australian debit card.
Credit cards such as Mastercard, Visa, American Express, Diners Club and JCB are readily accepted in Australia.
Banking at UNSW
There are three financial institutions on campus:
• Commonwealth Bank of Australia (CBA)
• Australia and New Zealand Banking Group (ANZ)
• Catalyst Mutual
With these institutions you can set up savings accounts, investment accounts, and/or cheque accounts. They also handle overseas transactions, such as drafts, travellers cheques and foreign currency exchange.