Best business bank accounts in Australia
If you run a business in Australia that deals with international trade, you need a business bank account to streamline cross-border payments and foreign exchange.
Key takeaways
- If you have a registered business in Australia, you are legally required to have a business bank account.
- WorldFirst is the leading digital payments and financial services platform for businesses in Australia.
- You can send, collect, and hold funds in multiple currencies with a World Account
Introduction
According to the Australian Government, you need a separate business bank account if you have a company or a trust. Even if you are a sole trader, a business account can help separate your business and personal transactions.
With so many options available, you should take time out to compare and find the best business bank account in Australia that aligns with your requirements.
Table of Contents
What is a business bank account?
A business bank account is mainly designed to help you manage all business-related transactions. Business accounts protect your transactions and make integrating your banking details into accounting and reporting tools easier.
The benefits of a good business bank account
Here are some of the many benefits of setting up a business bank account:
Designed for business needs: Business accounts are designed specifically for fast-growing businesses and their day-to-day challenges. Their features can include fast global transactions, support for multiple currencies, competitive exchange rates, and bulk payouts.
Easy cash flow management: Tracking all business payments and collections through a single account makes it easier to analyse and manage the total cash flow.
Integration with accounting tools: You can directly integrate accounting tools with your business bank account, significantly reducing the administrative burden of bookkeeping.
Bulk payouts: Some business bank accounts allow you to make bulk payments, decreasing the time it takes to pay beneficiaries.
Top business bank accounts in Australia
1. WorldFirst
WorldFirst is an authorised and regulated payments provider that helps businesses in Australia make international payments securely and at speed. You can send, collect, and hold funds in multiple currencies by opening local currency accounts.
With a single World Account, you can pay employees locally, clear out overseas supplier payments, or collect from customers across different marketplaces or payment gateways. WorldFirst offers competitive exchange rates and allows you to lock in rates for up to 24 months, protecting your business’s profit margins.
Pros of opening a business account with WorldFirst:
- Open local currency accounts in 15+ currencies
- Pay into China, USA, New Zealand, Europe, and 130+ countries and regions in 40+ currencies
- Collect payments at zero costs from 100+ marketplaces and payment gateways
- Send up to 200 payments in one transaction
- Make instant and free transfers between World Accounts
- Keep more of what you make with competitive exchange rates
- Decrease admin tasks with Xero integration
- No minimum balance required
Fees
Your World Account is designed with growing businesses in mind.
| Account setup fee | Zero |
|---|---|
| Monthly account service fee | Zero |
| Fee for receiving payments | Zero |
| Fee for sending payments | Up to 0.6% with competitive foreign exchange rates |
| Fee for holding currency | Zero |
| Intra-account transfers | Zero |
2. ANZ Bank business account
ANZ offers two types of business bank accounts: Business Essentials and Extra. The Business Essentials bank account is a simple account that helps keep business and personal banking separate.
Pros
- The Extra account offers an overdraft facility at AUD 10 per month [1]
- Business debit cards are available
- No minimum balance requirement
Cons
- No support for multiple currencies through business accounts. Though ANZ does offer a separate foreign currency account
- There are fixed charges for sending and receiving payments
- International transactions attract additional fees
Fees
- Monthly account service fee: Two accounts available at zero costs and AUD 10 per month
- Minimum account balance: Zero
- Transactions fee: Starts at AUD 2.50
- Overseas Transaction Fee: 3%
3. NAB bank business account
NAB offers two types of business bank accounts: One with no monthly fee and another with a AUD 10 monthly fee [2]. The main difference is that the AUD 10 monthly fee account offers 30 free assisted transactions. Except for the free transactions, all other transactions attract a fee.
Pros
- Overdraft service is available for both free and paid accounts
- Unlimited electronic transactions with no limitations
- Integration with accounting software
Cons
- Transaction fees levied on deposits and withdrawals
- No support for holding multiple currencies through its business accounts
- High international transaction fees
Fees
- Monthly account service fee: Two accounts available at zero costs and AUD 10 per month
- Minimum account balance: AUD 0
- Transactions fee: Starts at AUD 2.50
- Multiple transfer fee: AUD 0.20 per credit
- International transaction fee: 3%
4. CommBank business transaction account
CommBank also offers two types of business accounts–Online and in-branch. The online account is more suited for businesses that do most of their banking online. The in-branch account costs AUD 10 per month, and it is mainly for businesses that prefer to visit the bank regularly [3].
Pros
- No minimum account balance required
- Integration with accounting software
- No monthly fee if you prefer to bank online
Cons
- Withdrawals and deposits are chargeable
- There’s only SWIFT for international payments
- Overdraft is available, but only in some cases
Fees
- Monthly account service fee: Two accounts available at zero costs and AUD 10 per month
- Minimum account balance: AUD 0
- Transaction fees: AUD 5-15
- Overdrawn fee: AUD 15
- International transaction fee: 3%
5. Westpac Bank business account
Westpac offers two business bank accounts — Business One and Business Plus. Business One comes with a zero monthly fee and is mainly aimed at online banking businesses. Business One Plus has a AUD 10 monthly fee and it is aimed at businesses that prefer to bank online and in branch [4].
Pros
- No monthly fees for online banking accounts
- Unlimited domestic electronic transactions
- Debit cards and cheque books available
Cons
- There are charges for staff-assisted withdrawals
- International transaction fees are high
- Foreign withdrawals also attract fees
Fees
- Monthly account service fee: Zero costs for online accounts; AUD 10 for online+ bank-assisted accounts
- Minimum account balance: Zero costs
- Deposit and withdrawal fees: AUD 3
- Overdrawn fee: AUD 15 per occurrence
- International transaction fee: 3%
6. Wise Business
Wise is a payment service provider that offers personal accounts for individuals and business accounts for global businesses. It allows businesses based in Australia to send and receive money internationally.
Pros
- Hold funds in 40+ currencies
- Receive local bank account details for 10+ currencies
- No monthly fees
Cons
- There are charges for receiving USD and CAD payments
- While Wise supports multiple currencies, there is no support for CNY and HKD
- Account funding charges can quickly add up
Fees
- Monthly account service fee: Zero costs
- Fee for receiving payments: Free, except for USD and CAD payments.
- Fee for sending payments: Start at 0.35% [5]
- Conversion fees: Starts at 0.35%
- Fee for opening a local currency account: AUD 22
- Account funding charges: 2%
7. Airwallex
Airwallex is a global payment provider that helps businesses with foreign exchange and cross-border payments. It offers flexible APIs and plugins to make it easier for businesses to collect international payments.
Pros
- Open local currency accounts in 12 countries
- Make international transfers to 150 countries
- Automate domestic and international payments
Cons
- Currency conversion rates are higher for new members
- Features and fees can vary a lot depending on the regions
- Separate conversion, refund, and chargeback fees for collecting payments through payment gateways
Fees
- Monthly account setup fee: Zero
- Fee for receiving payments: Zero
- Fee for sending payments: Zero for domestic payments, 0.1% for CNY payments, and AUD 10-30 for SWIFT payments [5]
- Conversion fees: Starts at 0.3-0.6%
How to compare business bank accounts
Consider the following features when comparing business accounts:
Ongoing/ monthly: Review the monthly maintenance or account-keeping fees you will be expected to shell out. You should also consider fees for in-branch transactions, assisted transactions, ATM usage, and cash/cheque deposits.
Speed of transactions: Consider the transactions that matter the most to your business (domestic or international) and check how fast your new business account can execute them. Delayed payments can lead to cash flow issues and create a bad reputation with vendors.
Ease of cross-border payments: If you plan to expand globally across different regions, you need a business bank account that simplifies cross-border transactions. Making international payments should be just as easy as making local payments.
Marketplace collections: Online e-commerce businesses expanding quickly should look for a business account provider that can streamline collections from global marketplaces at low costs.
Support for multiple currencies: If your e-commerce business has suppliers based abroad and customers worldwide, you need a business account that allows you to send, receive, and hold funds in multiple currencies.
International transaction fee: Most payment providers charge a percentage of the total transaction amount when it comes to international payments. If you make frequent cross-border payments, look for a business account with the lowest international transaction fees.
Security and access: Look into the payment provider or bank’s approach to cyber security. How are they regulated? How do they keep customer accounts secure? What proactive steps do they take to avoid unauthorised access?
Support for businesses: While customer service is important, the payment provider should also closely provide support to businesses expanding their operations. Choose a provider that helps you realise your numerous business ambitions and supports you along the way.
How to open a business account in Australia with WorldFirst?
WorldFirst is the leading payment provider and financial services platform for businesses in Australia. With a World Account, you can grow your business globally without worrying about excessive paperwork or high conversion costs chipping away your profit margins.
There are no transfer or collection limits, allowing you to manage your daily transactions easily. Pay locally or globally in minutes with a single account.
Here are the steps to open a business bank account with WorldFirst
1. Gather all the important documents
Before getting started, make sure you have the following documents:
- Your company’s basic information (including your registration number, trading address, and company structure)
- A valid ID (e.g., your passport or driver’s licence)
- Your mobile phone
- Details of all current directors registered within the company
- Valid ID for all shareholders (e.g., passport or driver’s licence)
Here’s the in-depth list of documents you can provide for account verification.
2. Add the country or region of your business
Select the country or region where your business is registered using the dropdown list
3. Verify your email address
Enter your email address and click on the ‘send code’ button. Verify your email address by entering the code shared over email. Create a secure password for your account.
4. Verify your mobile number
Enter your mobile phone number and click ‘Send code.’ When prompted, enter the 6-digit verification code sent to your mobile phone number via SMS.
5. Provide information about your business
Enter your company registration number and other company details, including company name, type of business, and registered address.
6. Provide proof of identity
Select which country your ID was issued in and upload ID proof.
7. Provide information about company directors and ownership
Add details about registered directors and major shareholders, and upload the necessary documents.
Once your account is verified, you can start using it right away. You can also open local currency accounts based on your current business requirements.
- Open 10+ local currency accounts with local account details
- Direct CNH payments to 1688.com
- Pay suppliers, partners and staff in 40+ currencies and 130+ destinations
- Collect secure payments from 100+ marketplaces and payment gateways, including Amazon, AliExpress, Paypal and Shopify
- Lock in currency conversion rates for up to 24 months
Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
Sources:
[1] https://www.anz.com.au/content/dam/anzcomau/documents/pdf/transaction-accounts-fees-charges.pdf
[3] https://www.commbank.com.au/business/bank-accounts/business-transaction-account/rates-and-fees.html
[5] https://wise.com/au/pricing/business
[6] https://www.airwallex.com/au/platform-pricing/account-transactions
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