Everything international travelers need to know about the Australian Dollar (AUD)
Australia uses the Australian Dollar (AUD), one of the world's most advanced currencies. The nation pioneered polymer (plastic) banknotes in 1988, creating durable, secure, and environmentally friendly currency. Each denomination features unique colors, sizes, and prominent Australian figures, making them easy to distinguish.
As of 2025, Australia is progressively introducing new banknote designs featuring King Charles III, replacing the previous series with Queen Elizabeth II. Both versions remain legal tender during the transition period.
Multiple convenient options for international travelers
ATMs are ubiquitous in Australia, located at banks, shopping centers, service stations, and convenience stores. Most accept international cards (Visa, Mastercard, Maestro).
Typical Fees: $2-$5 per withdrawal plus your bank's foreign transaction fee (usually 2-3%).
Tip: Withdraw larger amounts less frequently to minimize fees.
Widely Accepted: Visa and Mastercard are accepted almost everywhere. Contactless "tap-and-go" payments are the norm.
Limited Acceptance: American Express (1-3% surcharge often applies), Diners Club, JCB, and UnionPay at fewer locations.
Digital Wallets: Apple Pay, Google Pay, and Samsung Pay are extremely popular.
Available at international airports, major banks, and tourist areas. Rates are displayed as "buy" (what they pay you) and "sell" (what you pay them).
Best Rates: Usually found at city exchange bureaus, not airports.
Tip: Compare rates online before exchanging. Some services don't charge commission but offer worse exchange rates.
Consider getting a travel money card (like Wise or Revolut) before arriving in Australia. These offer competitive exchange rates and lower fees than traditional banks, plus you can lock in rates before you travel.
Australia has a 10% Goods and Services Tax (GST) included in most prices. The Tourist Refund Scheme (TRS) allows you to claim GST refunds on:
How to Claim: Present your goods, passport, tax invoices, and boarding pass at TRS counters at the airport (allow 30+ minutes).
Not Eligible: Accommodation, car rentals, tours, services, consumed goods.
Australian law requires you to declare if you're carrying physical currency (cash, cheques, money orders) of:
$10,000 AUD or more (or foreign equivalent)
This applies when entering or leaving Australia. Declaration forms are available on aircraft or at customs.
Important: Failure to declare can result in fines up to $13,200 or prosecution. This includes family groups traveling together.
Note: Digital currency and credit/debit cards do not need to be declared.
Not Mandatory: Unlike the US, tipping is not expected in Australia because workers receive fair minimum wages.
When to Tip:
Payment: Most POS systems don't have tip prompts. Cash tips are most common when tipping.
Choose the best option for your needs
| Method | Typical Fees | Best For | Acceptance |
|---|---|---|---|
| Credit Card (Visa/MC) | 2-3% foreign transaction fee | Everyday purchases | ✅ 95%+ |
| Debit Card | $2-5 + 2-3% per transaction | ATM withdrawals | ✅ ATMs widely available |
| Travel Money Card | 0.5-1% typically | Budget-conscious travelers | ✅ Where Visa/MC accepted |
| Cash (AUD) | Exchange rate margin 3-5% | Small vendors, markets | ✅ Universal |
| Digital Wallets | Same as linked card | Contactless convenience | ✅ 90%+ urban areas |
| American Express | 2-3% + merchant surcharge | High-end establishments | ⚠️ 60-70% |
Most experienced travelers use a combination: a travel money card for everyday purchases, a credit card as backup, and a small amount of cash ($100-200) for emergencies and small vendors.
It's wise to exchange $100-300 AUD before arrival for immediate expenses like transport and meals. However, you'll often get better rates by withdrawing from ATMs or using currency exchange services in Australian cities rather than at your home airport.
Yes, ATMs in Australia are very safe. Use ATMs attached to banks or in well-lit, busy areas. Cover the keypad when entering your PIN. Be aware that independent ATMs (not bank-owned) typically charge higher fees ($3-5 vs $2-3).
Most Visa and Mastercard debit/credit cards work in Australia. Before traveling, notify your bank of your travel dates to avoid your card being blocked for suspicious activity. Check if your card has a chip and PIN - magnetic stripe-only cards may not work everywhere.
Yes! Australia has one of the highest contactless payment adoption rates in the world. Apple Pay, Google Pay, and Samsung Pay are widely accepted. Simply add your international card to your digital wallet and tap to pay at most retailers.
No, Australian businesses only accept Australian Dollars (AUD). You must exchange foreign currency at banks, exchange bureaus, or withdraw AUD from ATMs. Some high-end hotels may exchange small amounts as a courtesy for guests.
Some merchants charge a surcharge (typically 0.5-3%) for credit card payments, especially for American Express. Debit cards usually have lower surcharges (0.5-1%). The surcharge must be clearly displayed before payment. Many businesses offer discounts for cash payment.
When the First Fleet arrived in Australia in 1788, the colony initially operated without official currency, with rum becoming an informal medium of exchange. The first official coins used in Australia were created in 1813 by Governor Lachlan Macquarie, who addressed the coin shortage by punching the center out of Spanish dollars, creating two coins: the "Holey Dollar" and the "Dump."
In 1910, nine years after Federation, Australia introduced its own silver coins. The country used pounds, shillings, and pence until February 14, 1966, when decimal currency was introduced, replacing the old system with dollars and cents. This change simplified calculations and aligned Australia with international monetary standards.
Australia revolutionized currency production in 1988 by introducing the world's first polymer (plastic) banknotes, beginning with the $10 note to commemorate the bicentenary. By 1996, all paper notes were replaced with polymer versions. These innovative notes are more durable, harder to counterfeit, and more environmentally sustainable than traditional paper currency. Many countries worldwide have since adopted Australia's polymer banknote technology.
Each Australian banknote features prominent Australians who made significant contributions to the nation. All notes are made from durable polymer and include advanced security features.
The $5 note is unique as it's the only current denomination not featuring two individuals. One side displays the portrait of Queen Elizabeth II (commissioned in 1984), while the other features Australia's Parliament House in Canberra. The new generation $5 note, released in September 2016, includes enhanced security features and more vibrant colors. Note: Future issues will feature King Charles III as Australia transitions to the new monarch series.
Andrew Barton "Banjo" Paterson (1864–1941) was one of Australia's most beloved poets, famous for iconic works including "Waltzing Matilda" (Australia's unofficial national anthem) and "The Man from Snowy River." Dame Mary Gilmore (1865–1962) was a renowned poet, author, journalist, and passionate advocate for social justice, campaigning tirelessly against inequality and deprivation throughout her life.
Mary Reibey (1777–1855) arrived in Australia as a convict at age 13 but went on to become one of the colony's most successful businesswomen, building a shipping and trading empire and engaging in extensive philanthropy. Reverend John Flynn (1880–1951) founded the Royal Flying Doctor Service in 1928, revolutionizing healthcare access for people in remote and rural Australia.
David Unaipon (1872–1967) was a pioneering Indigenous Australian inventor, writer, and public speaker. His contributions to science and mechanical engineering earned him recognition as one of Australia's most influential thinkers. Edith Cowan (1861–1932) was a social reformer and feminist who became Australia's first female member of parliament in 1921, championing children's rights, education, and women's welfare.
Dame Nellie Melba (1861–1931) was an internationally acclaimed soprano, recognized as one of the greatest opera singers of her era. She achieved worldwide fame and became a cultural icon for Australia. General Sir John Monash (1865–1931) was one of Australia's most celebrated military commanders during World War I, also renowned as a distinguished civil engineer and administrator who contributed significantly to nation-building projects.
Australian banknotes are among the world's most secure currencies, incorporating multiple anti-counterfeiting technologies:
Raised bumps on the sides help vision-impaired users identify denominations by touch. Each denomination has a different number of bumps.
Transparent polymer windows with intricate designs that are difficult to replicate. Hold the note up to light to see these features clearly.
Extremely fine text and holographic images that change appearance when tilted, visible under magnification.
Under UV light, specific elements on the notes glow, revealing hidden security features not visible in normal light.
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