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Most foreign students, like large numbers of Australian students, live on limited budgets. It is best to manage your money wisely in order to make sure it lasts as long as possible. It is important to be cautious about spending money until you have become accustomed to the value of the dollar and have developed a thorough realisation of what your essential living expenses will be.
It is not wise to carry large amounts of cash with you or to keep it at your residence. Instead, deposit it in a bankor Building Society account.
For students on a payment plan, you must have an Australian bank account, or a Credit Card, for the money to be debited from every month.
Australian Currency
The standard of Australia currency is the dollar which is divided into 100 "cents." The value of the dollar varies from day to day on the world market, but remains relatively stable here in the Australia. Our inflation rate is less than 10%, so prices increase quite slowly.
Australia was the first country in the world to have a complete system of bank notes based on plastic (polymer). These notes provide much greater security against counterfeiting. They also last four times as long as conventional paper (fibrous) notes.
Coins
Coins (also known as "change") represent fractions of one dollar, and their value is defined in "cents." There are six denominations of Australian coinand each one is different in appearance and size. They are:
- The five cent coin depicts an echidna, or spiny ant-eater, one of only two egg-laying mammals in the world. It is silver in colour and the smallest of the coins.
- The 10 cent coin features a male lyrebird dancing. A clever mimic, the lyrebird inhabits the dense, damp forests of Australia's eastern coast. It is silver in colour and the second smallest of the coins.
- The 20 cent coin carries a platypus, the world's only other egg-laying mammal. It has webbed feet and a duck-like bill that it uses to hunt for food along the bottom of streams and rivers. It is silver in colour.
- The 50 cent coin carries Australia's Coat of Arms: the six State badges on a central shield supported by a kangaroo and an emu, with a background of Mitchell grass. It is silver in colour.
- The one dollar coin, which replaced the one dollar note in 1984, is also frequently used for commemorative designs. The standard coin depicts five kangaroos. It is gold in colour.
- The two dollar coin was introduced in 1988. It depicts an Aboriginal tribal elder set against a background of the Southern Cross and native grass trees. It is gold in colour.
Notes
As mentioned earlier our currency notes are polymer. They are also very colourful. Each of the notes is different:
 The A$100 note features world-renowned soprano, Dame Nellie Melba* (1861-1931), and the distinguished soldier, engineer and administrator, General Sir
John Monash (1865-1931).
The A$50 note features David Unaipon* (1872-1967), Aboriginal writer and inventor, and Edith Cowan (1861-1932), Australia's first female parliamentarian.
The A$20 note features the founder of the world's first aerial medical service, the Royal Flying Doctor Service, the Reverend John Flynn* (1880-1951), and Mary Reibey (1777-1855), who arrived in Australia as a convict in 1792 and went on to become a successful shipping magnate and philanthropist.
The A$10 note features the poets A. B. (‘Banjo') Paterson* (1864-1941) and Dame Mary Gilmore (1865-1962). This note incorporates micro-printed excerpts of Paterson's and Gilmore's work.
The A$5 note features Her Majesty Queen Elizabeth II and Parliament House* in Canberra, the national capital. (*pictured above left)
Banks and Banking Services
There are basically two types of banking services available in Australia: credit unions, and full-service banks. Their services are similar in that they all offer savings and checking accounts and credit cards and loans to qualified customers. The interest rates for these services vary only slightly between different institutions. Banks offer additional services, such as safe-deposit boxes and international currency exchanges. Credit unions are member-owned and one must usually be employed by selected businesses (or pay a membership fee) to become a member.
Opening an Account – the 100 Point System
To open any kind of bank account, go to the bank of your choice and tell the teller that you would like to open an account. The teller will direct yo u to a person who can explain the kinds of accounts that are available and can open one for you. Married people can initiate a "joint account" which either or both of them can use. There are periodic changes in the kinds of accounts and the other services that banks offer. Banks have "customer service" personnel whose job is to answer customer questions and assist with problems related to banking services.
You will be required to provide the following minimum level of information, including:
- Full legal name
- Marital status
- Date of birth
- Current location (overseas) address and mailing address (if different)
- Future contact address in Australia (if known)
- Occupation
- Confirmation that proposed account will be used for private purposes only
- Anticipated arrival date in Australia
- Sufficient information to satisfy Australian identification regulations (the 100 points of ID)
If you want to open a bank or credit union account in Australia, you need to pass the '100 point' system to prove your identification. You will need particular types of ID, each with a given points value. For example:
| Document |
Points |
Notes |
| Birth Certificate |
70 points |
You can only get points for one item in this section |
| Passport |
|
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| Citizenship Certificate |
|
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| Drivers Licence |
40 points |
These cards must have a photograph or signature probationary / learner |
| Shooters Licence |
|
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| Public Service Employee ID card |
|
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| Commonwealth or State Government financial entitlement card (eg Pension card) |
|
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| Land Rates |
35 points |
Applies to home buyers or owners only |
| Any card on which your name appears |
25 points |
|
| Medicare card |
|
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| Credit Card (only 1 per institution) |
|
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| Store Account Card |
|
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| Video Store Card |
|
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| Library Card |
|
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| Union Card |
|
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| Documents on which your name and address appear |
25 points |
|
| Car registration |
|
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| Utility bill |
|
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| Rental receipts |
|
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| Records of another financial institution showing you've been a member for 12 months or more |
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Some points to note:
- This system, while mechanistic, is arguably better than the identification system prevailing in the UK and most other countries which seems to depend on the whim of a bank official.
- There is no reason why a foreign birth certificate, passport, naturalisation certificate or driving licence shouldn't be accepted, but you will have to ask (and maybe ask to see a manager if necessary)
- If you open an account within 6 weeks to 3 months (depending on the institution) of arriving to live in Australia, you will need only your passport. This concession only applies to banks, from what I've been told, not credit unions.
Automatic Teller Machines (ATMs)
The automatic teller is a computerized device through which bank customers can make deposits or withdrawals at any time of the day, any day of the week. To operate an ATM, the customer needs a particular plastic card (called an "instant access card") and a personal identification number (or "PIN") that the bank provides. Memorize this PIN number; you must type it into the ATM before you can conduct any transactions. Do not write down the number or keep it in your wallet or purse. If your card is stolen and the thief has your identification number, he or she can withdraw every cent you have in the bank. If you lose your card, contact your bank immediately. Instructions for operating the automatic teller are given on the machine itself.
Automatic tellers are located at banks and at some other locations, including supermarkets, shopping centers, hospitals, convenience stores and so on.
There is a charge for all transactions at ATMs that do not belong to your bank.
Protecting Your ATM Card
Consider this excellent advice from Mastercard (http://www.mastercard.com/au/cardholderservices/atm/atm-tips.html)
- Keep your card in a safe place -- away from prying eyes, and where it won't bend or scratch.
- Memorize your Personal Identification Number (PIN). Never write your PIN down on anything in your wallet, or on the card itself.
- Keep your PIN number private. When selecting a PIN, avoid numbers and letters that can be easily identified with you. For example, don't use your initials, birthday, telephone or Social Security number. If you have such a number, contact your bank and get a new PIN issued.
- Report a lost or stolen card to your financial institution immediately.
- Keep your ATM receipts, until you check them against your monthly statement. It's a good way to guard against fraud and makes record-keeping easier.
Electronic Funds Transfer & Electronic Funds Transfer Point Of Sale (EFTPOS)
The electronic funds transfer is a method of transferring money from one bank to another. It can also be used to pay bills and deposit checks without physically handling the money. Bills can be paid automatically each month by asking your bank to send money to certain companies to whom you owe money. This is a common method of paying utility bills. If you work, your check can be automatically deposited in your account in the same way. This saves time, stamps, and envelopes. It also makes sure your bills are never paid late. This is often handled over the internet or by signing contracts with suppliers to let the debit your account. This is very common.
EFTPOS is a method of paying someone through a special terminal located at the cash registers. You can usually (but not always) use a normal ATM card or credit card. This may be restricted in some rural areas.
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