Lexi Webster
If you're planning a trip to Australia, it's a good idea to plan your budget in advance. The Australian dollar (AUD) is the official currency in Australia and is accepted everywhere in the country. While some establishments may accept US dollars, they will set their own exchange rates, which may be unfavourable. To avoid losing money, it is recommended to obtain AUD before your trip and use it for your transactions. There are several ways to get AUD, including using a travel card like Wise, which offers a multi-currency account with instant access to AUD, or buying AUD in cash from a bank or currency exchange office.
| Characteristics | Values |
|---|---|
| Official currency in Australia | Australian dollar (AUD) |
| Australian currency symbol | $ |
| Australian currency representation | A$ 10.99 or A$ with the amount |
| Best card for travel to Australia | Wise |
| Wise exchange rate | 0.5% or lower |
| Wise free ATM withdrawal allowance | 350 AUD |
| Wise Multi-Currency Card fee | No fees on the first £200 every 30 days |
| Wise sign-up fee | Free |
| Places to get Australian dollars in the US | Travel money card like Wise or Revolut, exchange offices, online banking service, high street banks, local bureau de change, home delivery, or at the airport |
| Average hotel costs in Australia | $140 |
| Average food costs in Australia | $34 per meal |
| Average daily budget for a trip to Australia | $31 per day |
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What You'll Learn
Using US dollars in Australia
The Australian dollar (AUD) is the official currency of Australia and is accepted throughout the country. It is the primary medium of exchange in Australia and is used for all types of transactions.
While some establishments in Australia, such as hotels, may accept US dollars, they will set their own exchange rates between the US dollar and the Australian dollar, which may result in unfavourable prices for you as a customer.
It is recommended that you obtain Australian dollars before your trip by using a travel card like Wise, which offers a multi-currency account with instant access to 30 foreign currencies, including AUD. With Wise, you can exchange your US dollars to AUD at or near the real mid-market exchange rate and access your Australian dollars instantly in your digital wallet. Then, you can use your debit card to withdraw cash from local ATMs in Australia.
If you prefer to use cash, you can also exchange your US dollars for Australian dollars at local ATMs or currency exchange kiosks in Australia. However, be aware that currency exchange services at banks, kiosks, and some hotels or airports can be expensive, with exchange rate margins as high as 10% at airports and with PayPal.
To avoid these high fees, you can consider using a debit or credit card that does not charge international transaction fees. Credit card processors like Mastercard, VISA, and American Express use their own exchange rates, which are typically very close to the mid-market rate.
Additionally, be cautious when using ATMs in Australia. While they are generally safe, it is best to use ATMs attached to a bank rather than standalone machines, especially in tourist areas. Some standalone ATMs may apply weak exchange rates to your US dollars before you withdraw, a process known as dynamic currency conversion, resulting in additional fees and unfavourable exchange rates.
In summary, while it is possible to use US dollars in Australia, it is more beneficial to use the local currency, the Australian dollar, to ensure fair and accurate pricing and smooth transactions during your stay.
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How to get Australian dollars
The Australian dollar is the official currency of Australia and is accepted throughout the country. It is also the currency used in Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu.
There are several ways to obtain Australian dollars, depending on your location and preferences. Here are some common methods:
Online Purchase and Delivery
You can order Australian dollars online from various currency exchange providers and have them delivered to your home address. Websites such as Interchange Financial and OnlineFX offer this service, with competitive exchange rates and secure delivery options. This method allows you to compare rates and order from the convenience of your home, avoiding the need to visit banks or currency exchange kiosks, which may have higher fees.
Pick-up from Designated Locations
Some online currency exchange providers also offer the option to pick up your ordered currency from designated locations. This can be a faster alternative to home delivery, as you may not need to wait for shipping. Interchange Financial, for example, offers instant pick-up from their locations.
Travel Money Cards
Travel money cards, such as those offered by Wise, are a popular choice for travellers. These cards allow you to access multiple currencies, including Australian dollars, instantly. You can order a physical card to be delivered to your home or get a virtual card on your phone immediately. Withdrawing cash from ATMs using these cards can be free up to a certain amount, and they are widely accepted at shops and restaurants worldwide.
Local Currency Exchange
If you are already in Australia, you can exchange your local currency for Australian dollars at banks, currency exchange kiosks, or other foreign exchange dealers. However, keep in mind that these services may offer less favourable exchange rates and potentially charge additional fees.
Using Debit/Credit Cards
If you have a debit or credit card that does not charge international transaction fees, you may find it convenient to simply use your card throughout your trip to Australia. Card processors like Mastercard, VISA, and American Express typically offer exchange rates close to the mid-market rate.
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Best Australian dollar exchange rates
The Australian dollar (AUD) is the official currency of Australia and is accepted throughout the country. It is the primary medium of exchange in Australia, and you will need it for all types of transactions.
When looking for the best Australian dollar exchange rates, you should always look for the best possible exchange rate, regardless of the conversion method you are using. Banks and transfer services use the mid-market rate (also known as the interbank rate) when exchanging currencies between themselves. This is the fairest possible rate. However, when dealing with customers, banks and transfer services add a hidden markup, which is why you will see different exchange rates across providers. You are paying the difference between the mid-market rate and the rate quoted by your transfer service. This can often be without you even realizing it, even when services claim to have zero fees.
One way to get the mid-market exchange rate is to use a service like Wise, which gives you access to a multi-currency account. With the Wise Multi-Currency Card, you can send and spend money at the real exchange rate and convert it instantly. You can withdraw money from ATMs abroad with no fees on your first £200 every 30 days. Additionally, Wise offers a guaranteed rate for 24 hours, so you can lock in your rate when you find the right time.
Another option is to use a debit or credit card that does not charge international card transaction fees. Credit card processors such as Mastercard, VISA, and American Express use their own exchange rates, which are typically very close to the mid-market exchange rate (usually around 0.5% to 0.9% weaker).
It is important to note that exchange rates are often volatile, reacting to economic and political events, and can move quickly. The Australian dollar has been popular among currency traders due to its relatively high liquidity and the high-interest rates set by the Reserve Bank of Australia (RBA). However, the RBA has recently kept interest rates at record highs, while most of its overseas counterparts have started the loosening process, making it difficult to predict its actions beyond the next meeting.
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Using Australian dollars overseas
If you're travelling overseas and are considering whether to move your money into Australian dollars, there are a few things to consider. While it is recommended to use the local currency when paying for goods and services, some establishments in Australia, such as hotels, may accept foreign currencies like US dollars. However, these places will set their own exchange rates, which may result in unfavourable prices for you. Therefore, it is generally best to use the local currency, which is the Australian dollar (AUD), for your transactions.
When it comes to obtaining Australian dollars, there are a few options. One option is to use a travel card, such as Wise, which offers a multi-currency account with instant access to 30 foreign currencies, including AUD. With Wise, you can exchange your US dollars to AUD at or near the real mid-market exchange rate and then use your debit card to withdraw cash from local ATMs in Australia. Another option is to use a debit or credit card that does not charge international transaction fees and simply pay by card throughout your trip. Credit card processors, such as Mastercard, Visa, and American Express, typically offer exchange rates that are very close to the mid-market rate.
It is generally not recommended to exchange cash at banks, currency exchange kiosks, or airports, as these services can be expensive and have unfavourable exchange rates. Additionally, be aware of hidden markups in the exchange rate, as banks and providers may charge you a conversion fee as well as a hidden markup, resulting in double the fees. If you do need to exchange cash, it is recommended to carry about US $200 in US $20 bills, as smaller denominations may result in unfavourable exchange rates.
Before your trip, be sure to inform the issuer of your ATM/debit/credit cards that you are travelling overseas, including the dates of your trip. This will help prevent your account from being flagged for possible fraudulent activity due to foreign transactions. Additionally, when given the option to have your purchase converted to US dollars, it is recommended to refuse, as you are unlikely to get a good exchange rate.
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Budgeting for a trip to Australia
Australia is not a cheap destination, and the cost of your trip will depend on the exchange rate of the Australian dollar with your home currency. However, with careful planning, it is possible to keep costs reasonable. Here are some budgeting tips for your trip to Australia:
Currency Exchange
The official currency in Australia is the Australian dollar (AUD). It is recommended to obtain AUD before your trip by using a travel debit card such as Wise, which offers a multi-currency account with instant access to 30 foreign currencies, including AUD. With Wise, you can exchange foreign currency at low conversion costs of 0.5% or lower. You can then use your debit card to withdraw cash from local ATMs in Australia.
Accommodation
Accommodation in Australia can vary widely in price, with options ranging from free campsites to AUD$1,000+ per night luxury resorts. If you're on a tight budget, consider staying in a hostel, which can cost as little as AUD$20 for a dormitory bed or up to AUD$85 for a private room. Booking your stay well in advance, especially during peak travel periods, can help you secure better rates. Last-minute hotel booking sites can also offer great deals just a day or two before your arrival, with prices ranging from AUD$100 to AUD$200 per night.
Transportation
Domestic airfares within Australia can be surprisingly affordable, with one-way flights between Melbourne and Sydney sometimes costing as little as AUD$59. Bonza, a budget airline, offers very cheap flights for a limited number of destinations within the country. If you're planning a road trip, keep in mind that petrol (gas) prices in Australia can be expensive, with prices fluctuating around AUD$2 per liter. Australian public transportation is also a budget-friendly option, costing around AUD$2 per trip, compared to AUD$20-$30 for a taxi or rideshare.
Food
Restaurant meals can be pricey, often starting at around AUD$20. However, you can save money by using sites and apps that offer discounts and deals at restaurants.
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Frequently asked questions
Moving into Australian dollars is a good idea if you are planning a trip to Australia. It is the official currency of the country and is accepted everywhere in the country, ensuring smooth transactions and eliminating the need for frequent currency conversions.
You can exchange your money for Australian dollars at a bank, currency exchange kiosk, or at the airport. However, these are often the most expensive options. A cheaper alternative is to use a travel card like Wise or Revolut, which gives you access to multi-currency accounts.
Shopping around for the best exchange rate is a good idea. You can use a comparison tool to find the best rate. It is also worth noting that exchange rates are often volatile, reacting to economic and political events, so it can be tricky to know when to transfer your money.
The cost of your trip to Australia will depend on what you plan to do, where you will stay, and how long you will be there. On average, accommodation can start from $140 AUD per night, and food can cost around $34 AUD per meal. You should also budget for currency exchange, transport, and incidentals like tipping.
