Australia Travel Money - Best Options for Kiwis 2024
Our guide outlines everything you need to know about spending money in Australia, specifically cash vs debit and credit cards vs travel money cards.
Updated 29 July 2024
Summary:
Our guide explains everything you need to know to make travelling in Australia a cost-effective experience. We cover:
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Related guide: The Best Travel Money Cards
Video Overview: In the video below, MoneyHub Founder outlines our guide to best explain must-know facts and how to avoid the traps of forex when you're in Australia:
- Australia is popular year-round with New Zealanders, but the costs of visiting can be high, especially in Sydney and Melbourne.
- Most Australians, like New Zealand, pay by card, and businesses big and small accept cards - using cash is less and less common.
- The official currency of Australia is the Australian Dollar, often represented as AUD or with the "$" symbol locally. Over the past year, the exchange rate for NZD to AUD has seen some fluctuations, but on average, 1 NZD hovers between 0.85 and 0.95 AUD. As the NZD weakens, a trip to Australia gets more expensive, and vice versa.
- Most New Zealanders will pre-book and/or prepay hotels, Airbnb and car rentals, but on-the-ground costs can be a lot more than prepaid costs. For this reason, having the most economical and convenient payment method for Australia makes every dollar go further.
- We are confident in suggesting that Australia is increasingly cashless, and that cards are widely preferred as the method of payment. Any card-accepting business will take Mastercard and Visa, and in many cases, AMEX too.
Our guide explains everything you need to know to make travelling in Australia a cost-effective experience. We cover:
- Option 1 - Using Cash in Australia
- Option 2 - Using NZ-Issued Debit and Credit Cards in Australia
- Option 3 - Using Travel Money Cards (Including the Wise Debit Card) in Australia
- Must-Know Facts for Using Money in Australia
- NZD to AUD Conversion and Spending AUD - Frequently Asked Questions
- Our Conclusion
Advertising disclosure: We may receive a payment if you sign up for a card via MoneyHub - please read our advertising policy for more details.
Related guide: The Best Travel Money Cards
Video Overview: In the video below, MoneyHub Founder outlines our guide to best explain must-know facts and how to avoid the traps of forex when you're in Australia:
Our Top-Rated Travel Money Card - The Wise Debit Card
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Option 1 - Using Cash in Australia
If you want physical AUD notes before leaving New Zealand for Australia, you have a couple of options:
Getting AUD Cash from an NZ Bank: Most NZ banks have stopped offering FX cash services; Westpac is currently the only provider, but you'll need to be an existing Westpac customer to swap NZD for AUD notes.
Getting AUD Cash from a Beaurau de Change/Forex Booth:
The primary operators are travel money booths like Travelex and No1 Currency. However, the FX rates are well below mid-market rates per our video research summary below, meaning you'll get less AUD for your NZD than you otherwise would if you used Westpac's services or withdrew AUD from an ATM once you're in Australia.
Getting AUD Cash When You Arrive in Australia:
If you want to have physical Australian Dollars on hand for your arrival, there are ATMs in the arrivals areas and arrival concourses of Sydney, Brisbane, Melbourne, Perth, Hobart, Adelaide, Gold Coast and Cairns airports. The ATM fee you'll pay to withdraw money depends on your bank; for example, Kiwibank will charge NZ$6 while ANZ is free. Any ATM fee will be deducted from your bank account when you withdraw.
Our View: We've found that the FX rates at Forex booths aren't as favourable as those offered by Westpac (for AUD and other currencies). Furthermore, Westpac's AUD rates aren't as good as those from Wise. In practical terms, if you use Wise to withdraw money from an ATM in Australia, you'll get an extra AU$1 to AU$3 for every NZ$100 you take out (compared to changing it with the FX booths), thanks to Wise's superior rates and lower fees.
Bonus: The Wise Debit Card offers withdrawals of up to NZ$350 per month without charging a transaction fee, meaning you can withdraw up to around AU$330 in cash without paying FX transaction fees (after NZ$350, it's a flat 1.75% fee). Given most New Zealand banks are owned by Australian banks, you won't be charged for an ATM withdrawal - the exception being Kiwibank and the smaller regional banks such as SBS and the Co-operative Bank (and others).
Know This: If you make a one-off withdrawal of say, the equivalent of NZ$1,000 while outside of New Zealand, Wise will charge you fees on the $650, whereas the first $350 per month is free.
Getting AUD Cash from an NZ Bank: Most NZ banks have stopped offering FX cash services; Westpac is currently the only provider, but you'll need to be an existing Westpac customer to swap NZD for AUD notes.
Getting AUD Cash from a Beaurau de Change/Forex Booth:
The primary operators are travel money booths like Travelex and No1 Currency. However, the FX rates are well below mid-market rates per our video research summary below, meaning you'll get less AUD for your NZD than you otherwise would if you used Westpac's services or withdrew AUD from an ATM once you're in Australia.
Getting AUD Cash When You Arrive in Australia:
If you want to have physical Australian Dollars on hand for your arrival, there are ATMs in the arrivals areas and arrival concourses of Sydney, Brisbane, Melbourne, Perth, Hobart, Adelaide, Gold Coast and Cairns airports. The ATM fee you'll pay to withdraw money depends on your bank; for example, Kiwibank will charge NZ$6 while ANZ is free. Any ATM fee will be deducted from your bank account when you withdraw.
Our View: We've found that the FX rates at Forex booths aren't as favourable as those offered by Westpac (for AUD and other currencies). Furthermore, Westpac's AUD rates aren't as good as those from Wise. In practical terms, if you use Wise to withdraw money from an ATM in Australia, you'll get an extra AU$1 to AU$3 for every NZ$100 you take out (compared to changing it with the FX booths), thanks to Wise's superior rates and lower fees.
Bonus: The Wise Debit Card offers withdrawals of up to NZ$350 per month without charging a transaction fee, meaning you can withdraw up to around AU$330 in cash without paying FX transaction fees (after NZ$350, it's a flat 1.75% fee). Given most New Zealand banks are owned by Australian banks, you won't be charged for an ATM withdrawal - the exception being Kiwibank and the smaller regional banks such as SBS and the Co-operative Bank (and others).
Know This: If you make a one-off withdrawal of say, the equivalent of NZ$1,000 while outside of New Zealand, Wise will charge you fees on the $650, whereas the first $350 per month is free.
Using AUD Cash - Pros and Cons
Pros:
Cons:
- Universal Acceptance: While cash is always king, Australia is moving to become cashless by the end of 2025 per this September 2023 news.com.au article. Debit and credit cards, alongside Apple Pay and Google Pay, are most commonly used when in and around Australia.
- Immediate Transactions: There's no risk of card machine issues, declined transactions or fraud on your card.
Cons:
- Safety Concerns: Carrying large amounts poses a risk, especially in crowded areas. However, you can always leave a portion of AUD in a hotel room safe or keep it somewhere secure on you.
- Airport Exchange Woes: While convenient, exchanging NZD to AUD at the airport can be costly if you use a high-fee debit card at an ATM or get a bad rate at the Forex kiosk in New Zealand or Australia. This is because rates are often marked up, and there might be hidden commission fees, reducing the amount of AUD you receive for every NZD you change.
If I have spare Australian Dollars on the last day I'm in Australia, what should I do with them?
- Spare notes and coins have a habit of gathering dust back in New Zealand, and it may be some time before you visit Australia again. The best way to avoid having leftover currency is to spend the notes and coins on your last day; many people make a part payment alongside their card to settle a final bill, for example a lunch or dinner, before they fly out. Or you can put the cash towards the hotel bill if you're settling the bill at the end of your stay.
- You can convert them back to NZD at any Australian airport serving Air New Zealand or when you return to New Zealand. The AUD/NZD rate isn't likely to be market-leading at an FX kiosk. However, having NZD you can spend is more useful than AUD notes that sit there, so it's a cost worth incurring.
- Lastly, if you know someone visiting Australia in the future, giving them AUD notes and coins makes for a nice present they'll appreciate.
Option 2 - Using NZ-Issued Debit and Credit Cards in Australia
Many New Zealanders will use a debit and/or credit card when in Australia.
What Do New Zealand Banks Charge for Card Use? Most banks impose foreign transaction fees ranging from 0% to 3.5% of the total transaction amount. This fee is atop the exchange rate margin the bank adds to the daily exchange rate. Some banks might also charge a flat fee for overseas ATM withdrawals.
For example, if you're using an ANZ Visa Debit or credit card, you'd typically incur a fee of 1.30% of the transaction amount when you make a purchase overseas per the ANZ's website while Kiwbank's debit cards will charge you 2.50%. The Co-operative Bank goes higher with a 2.60% fee. If you withdraw from an ATM, you may also pay an additional overseas ATM fee, although most Australian-owned New Zealand banks will have a $0 fee, but you may need to use specific ATMs (as outlined here by Westpac).
More details: Detailed bank charges are in our Debit and Credit Cards FX Fee comparison.
What Do New Zealand Banks Charge for Card Use? Most banks impose foreign transaction fees ranging from 0% to 3.5% of the total transaction amount. This fee is atop the exchange rate margin the bank adds to the daily exchange rate. Some banks might also charge a flat fee for overseas ATM withdrawals.
For example, if you're using an ANZ Visa Debit or credit card, you'd typically incur a fee of 1.30% of the transaction amount when you make a purchase overseas per the ANZ's website while Kiwbank's debit cards will charge you 2.50%. The Co-operative Bank goes higher with a 2.60% fee. If you withdraw from an ATM, you may also pay an additional overseas ATM fee, although most Australian-owned New Zealand banks will have a $0 fee, but you may need to use specific ATMs (as outlined here by Westpac).
More details: Detailed bank charges are in our Debit and Credit Cards FX Fee comparison.
Using NZ Bank Cards - Pros and Cons
Pros:
Cons:
Our View:
Related guide: The Best Travel Money Cards
- Convenience: Your NZ debit or credit card (and travel money card) is versatile and widely accepted in every Australian business. Whether shopping, paying for hotel stays, or dining out, the card covers you.
- Tracking: One underrated advantage is the ability to track your expenses. With mobile banking apps, you can keep tabs on your spending, set budgets, and even receive instant transaction alerts. Australia is going to be more expensive than New Zealand and keeping track of your spending is essential.
Cons:
- Unpleasant Surprises: The cost of convenience can be high, and what NZ banks charge their customers to use a card overseas varies. The combined effect of foreign transaction fees and the bank's exchange rate margin can result in you paying significantly more than expected. Make sure you know the fees you'll be charged by reading your bank's website - our summary of overseas debit and credit card fees explains more.
- Dynamic Currency Conversion (DCC) Pitfalls: Sometimes you are offered to pay in NZD instead of AUD at card terminals in Australia. It might seem tempting to accept the NZD amount, but this service, called DCC, will almost always result in higher costs as the provider takes a margin, and the exchange rates used are often less favourable, and there might be hidden fees as well. When you agree to pay in AUD, you'll always get the bank or travel money card's best FX rate.
- Potential Card Issues: There's always a risk of your card being declined, skimmed, or even captured by ATMs. While these issues are rare and Australia is focused on card security, a backup card is good. We don't believe you need AUD notes and coins as long as you have one or two backup cards.
Our View:
- While using a New Zealand bank debit or credit card in Australia offers undeniable convenience, too many New Zealanders pay far too much in bank fees.
- It's not unreasonable to spend around NZ$3,000 to $5,000 for a family holiday week in Australia, which makes it an expensive place to be. Paying $150+ in bank fees and getting bad NZD/AUD rates during the week is best avoided. Some banks are fair, but many fee-gauge and charge you a small (but still hefty) percentage on every time your card is used. We don't think paying the bank 2.50%+ on every dollar you spend is a good use of money.
- Please double-check the fees associated with your specific bank and consider alternative options like travel-specific or multi-currency cards that offer better rates and fewer fees.
Related guide: The Best Travel Money Cards
Option 3 - Using Travel Money Cards (Including the Wise Debit Card) in Australia
Know This First: Our review and comparison of travel money cards confirms Wise as the best option, with no card a close second. This includes options from Travelex, OneSmart and Cash Passport. For this reason, we've focused on Wise for this section to explain what you need to know.
Getting Familiar with the Wise Debit Card Usage in Australia
Wise offers a travel money card that lets you have multiple currency wallets and comes with a physical and digital debit card. This includes the AUD, meaning you can buy AUD in advance and store it in an AUD digital wallet. If you prefer to load NZD rather than lock in an AUD forex rate, you can do that too. This means when you spend in AUD, transactions are converted into NZD and deducted from your balance at the forex rate at the time of purchase.
What Does Wise Charge for Card Use? Wise prides itself on transparent fees and real exchange rates. They charge a small conversion fee (around 0.47%) when you convert your money to AUD, which is typically much lower than traditional banks, with the additional benefit of leading FX rates.
ATM withdrawals are free up to a certain limit (NZ$350 per month), after which a 1.75% fee is applied. However, if you make a one-off withdrawal of say, the equivalent of NZ$1,000 while outside of New Zealand, Wise will charge you fees on the $650, whereas the first $350 per month is free.
Getting Familiar with the Wise Debit Card Usage in Australia
Wise offers a travel money card that lets you have multiple currency wallets and comes with a physical and digital debit card. This includes the AUD, meaning you can buy AUD in advance and store it in an AUD digital wallet. If you prefer to load NZD rather than lock in an AUD forex rate, you can do that too. This means when you spend in AUD, transactions are converted into NZD and deducted from your balance at the forex rate at the time of purchase.
What Does Wise Charge for Card Use? Wise prides itself on transparent fees and real exchange rates. They charge a small conversion fee (around 0.47%) when you convert your money to AUD, which is typically much lower than traditional banks, with the additional benefit of leading FX rates.
ATM withdrawals are free up to a certain limit (NZ$350 per month), after which a 1.75% fee is applied. However, if you make a one-off withdrawal of say, the equivalent of NZ$1,000 while outside of New Zealand, Wise will charge you fees on the $650, whereas the first $350 per month is free.
Using the Wise Debit Card - Pros and Cons
Pros:
Cons:
Our View: The Wise debit card, with its transparent fee structure and competitive exchange rates, is a value-delivering choice for many travellers in Australia. Combining the card with some cash will ensure you're prepared for all situations, and with zero FX fees on withdrawals up to NZ$350 per month (around AU$330), the card delivers on value.
Related guide: The Best Travel Money Cards
- Acceptance: You can use a Wise card anywhere Visa or Mastercard are accepted (which is almost everywhere in Australia).
- Competitive Rates: Wise uses the real exchange rate (the one you see on Google) and thus avoids the typical markup that banks add.
- Multi-currency: The Wise borderless account lets you hold and manage money in multiple currencies (including AUD), which can be extremely useful when travelling to more than just Australia.
- Transparent Fees: You always know what you're being charged, with no hidden costs.
- Instant Notifications: The Wise app notifies you immediately after every transaction, helping you keep track of your spending.
Cons:
- ATM Withdrawal Limit: While they offer free ATM withdrawals, it's only up to a certain limit. Beyond that, there's a 1.75% fee.
- Not a Credit Card: The Wise card is a debit card, meaning you can't spend money you don't have - we argue this is also a positive feature to avoid holiday debt.
Our View: The Wise debit card, with its transparent fee structure and competitive exchange rates, is a value-delivering choice for many travellers in Australia. Combining the card with some cash will ensure you're prepared for all situations, and with zero FX fees on withdrawals up to NZ$350 per month (around AU$330), the card delivers on value.
Related guide: The Best Travel Money Cards
Our Top-Rated Travel Money Card - The Wise Debit Card
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Must-Know Tips for Using Money in Australia
​Beware of the "Sunday Surcharge"
Some cafes, restaurants and even food courts add a surcharge to the bill on Sundays and public holidays. This is due to higher wage rates; usually, the surcharge will be 10% to 15%. Check the menu or ask the staff if you're out on a Sunday to avoid issues.
Guard Your Money and Financial Information
Avoid keeping all your money and cards in one place. Hotel safes or other secure spots can be useful for storing backups. Always monitor your card during transactions to safeguard against unauthorized charges or potential skimming.
Stay Alert: Scams can occur anywhere. Always be cautious and trust your instincts.
Stay Alert: Scams can occur anywhere. Always be cautious and trust your instincts.
Cards Are Common, But Cash Still Has Its Place (For Now)
Australia is moving to become functionally cashless by 2025, but there are still places where cash is accepted. Credit and debit cards are prevalent, but for farmer's markets, food trucks, or some small-town establishments, having cash on hand can be useful (although not crucial).
Consider Mobile Payment Options
Australia has widely adopted mobile payment systems like Apple Pay and Google Pay. These options can be convenient, especially if linked to a card like the Wise Debit Card.
Keep Track of Your Expenditures
It's easy to lose track of spending, and Australia is an expensive place for a budget blowout. To avoid this, we suggest an app like Wise, which gives you instant payment notifications (when you're on WIFI or data), which helps you stay aware of your spending.
Understand Return Policies
Each store in Australia has its own return policy, which can be different from New Zealand. Always keep your receipts and be aware of return windows, typically 14 to 30 days for most retailers. If in doubt, ask before you purchase.
NZD to AUD Conversion and Spending AUD - Frequently Asked Questions
How does the NZD usually fare against the AUD?
The NZD-AUD exchange rate can fluctuate based on economic factors. Since 2020, 1 NZD has been worth between 0.85 and 0.99; you can check the live rate here.
Can I use my travel money card, NZ debit card or credit card everywhere in Australia?
Yes - Australian businesses widely accept card payments, alongside Apple Pay, Google Pay and cash.
Is Australia expensive for NZ tourists?
It can be, but by planning ahead you can save significantly. The NZD buys around 0.85 to 0.95 AUD at the moment, which makes it higher than it has historically been, helping to control costs. Sydney and Melbourne can have high demand for hotels (depending on the season) so prices can increase. However, Australia operates with a lot of competition and tourist-friendly activities can be good value.
What's the best way to get the most AUD for my NZD?
Services like Wise can offer better exchange rates than traditional banks or airport exchange counters. The rates are better, the fees are lower, and there's an app to track all spending so you know exactly what you paid for something.
Our Conclusion
For New Zealanders travelling to Australia, saving on FX fees and bad rates is essential. While the exchange rate does see some movement, on average, one NZ dollar generally converts to between 0.85 and 0.95 Australian Dollars throughout the year.
In terms of accessing AUD:
Our View: Cards are so widespread in Australia that we don't see the need to use cash at all. To make every dollar go further, we suggest considering the Wise Debit Card as your primary spending tool, ensuring you get great rates and minimal fees. You can then use your NZ-issued debit card and/or credit card as a backup. However, if you do want to withdraw cash, Wise allows up to around AU$330 a month free of fees.
In terms of accessing AUD:
- Cash: While universally accepted, the trend in Australia is leaning towards cashless transactions, especially in urban areas. Getting AUD in advance at Forex kiosks in Auckland or upon arrival in Australia might seem convenient, but the rates are typically not as favourable as those offered by banks or platforms like Wise. We see them often when passing through these airports, and the rates are arguably terrible. As an alternative, the Wise Debit Card is particularly advantageous, providing superior rates and allowing free withdrawals of up to NZ$350 monthly.
- NZ Bank Cards: These cards provide the advantage of universal acceptance across Australia. However, using them can invite a combination of fees - from foreign transaction fees to exchange rate margins and overseas ATM charges for Kiwibank and Co-operative Bank, among others.
- Wise Debit Card: The Wise Debit Card presents itself as a clear, multi-currency solution with competitive exchange rates and minimal fees. Given Australia's growing cashless preference, it's a good fit. And, for anyone who wants cash, travellers can withdraw up to NZ$350 per month without incurring FX conversion fees.
Our View: Cards are so widespread in Australia that we don't see the need to use cash at all. To make every dollar go further, we suggest considering the Wise Debit Card as your primary spending tool, ensuring you get great rates and minimal fees. You can then use your NZ-issued debit card and/or credit card as a backup. However, if you do want to withdraw cash, Wise allows up to around AU$330 a month free of fees.
Related Guides:
Country-Specific Travel Money Guides:
- Compare Travel Money Cards
- Travelex Money Card vs Wise Debit Card
- Wise Debit Card vs Cash Passport Travel Money Card
- Wise Debit Card vs Air New Zealand OneSmart Travel Money Card
- Wise Debit Card Review
- Foreign Currency Debit and Credit Card Fees
- Foreign Currency Exchange
- Compare Travel Insurance
Country-Specific Travel Money Guides:
