How to Send Money Overseas from Australia: A Complete Guide
Sending money overseas from Australia involves transferring Australian dollars to a recipient in another country, usually after converting the money into a different currency. International transfers are commonly used to support family members, pay overseas bills, cover education expenses, purchase property, pay suppliers or manage personal finances across different countries.
There are several ways to send money internationally from Australia, including banks, specialist money transfer services and remittance providers. The process can vary depending on the destination country, transfer amount, currency, payment method and how the recipient wants to receive the funds.
This guide explains how international money transfers work, what information is required, how fees and exchange rates are calculated, how long transfers can take and what Australians should check before sending money overseas.
How Does an International Money Transfer Work?
An international money transfer moves funds from a sender in Australia to a recipient located overseas. In many cases, the sender pays in Australian dollars, or AUD. The transfer provider converts the money into the currency used by the recipient.
For example, someone sending money from Australia to the United Kingdom may pay in Australian dollars while the recipient receives British pounds. The transfer may be deposited directly into a bank account, collected as cash or delivered through another payment method, depending on the service and destination.
International transfers can pass through multiple financial institutions before reaching the recipient. This is one reason processing times and charges can differ between transfers.
Ways to Send Money Overseas from Australia
Australians generally have several options when sending money internationally.
Bank Transfers
Many Australian banks allow customers to send international payments through online banking, mobile banking or at a branch. The sender normally enters the recipient's banking information, selects the amount and currency, and confirms the payment. International bank transfers may involve currency conversion as well as fees charged by the sending bank, intermediary banks or receiving bank.
Online Money Transfer Services
Specialist international transfer services allow people to send funds through a website or mobile application. These services generally provide an exchange rate, transfer fee and estimated delivery time before the transaction is confirmed. Available countries, currencies, transfer limits and payment methods differ between services.
Remittance Services
Remittance providers specialise in sending money between countries. Some offer bank deposits, while others allow recipients to collect cash from an authorised location. In Australia, remittance providers are subject to regulatory requirements. Consumers can check the AUSTRAC Remittance Sector Register when assessing whether a provider is registered.
What Information Do You Need to Send Money Overseas?
The information required depends on the country and the method of transfer. For a transfer to an overseas bank account, you may need:
- ● The recipient's full name
- ● The recipient's residential address
- ● The name and address of the receiving bank
- ● The recipient's account number
- ● A SWIFT or BIC code
- ● An IBAN for countries that use the IBAN system
- ● A local bank or branch code
- ● The purpose of the payment
Some providers may also request information about the sender, the source of the funds, or the reason for the transaction. It is important to check the recipient's details carefully. Incorrect account numbers, names, or bank codes can cause delays or result in a transfer being rejected.
What Is a SWIFT or BIC Code?
A SWIFT code, also known as a BIC, identifies a particular bank or financial institution in an international payment. It is commonly used when money is transferred between banks in different countries. A SWIFT or BIC code is different from an Australian BSB number. A BSB identifies Australian bank branches, whereas SWIFT codes are used internationally. The recipient or receiving bank can normally provide the correct code.
What Is an IBAN?
IBAN stands for International Bank Account Number. It is a standardised format used to identify bank accounts in many countries, particularly in Europe. Australia does not generally use IBANs for domestic bank accounts. However, Australians sending money to countries that use the IBAN system may need to provide the recipient's IBAN.
How Are International Transfer Fees Calculated?
The cost of sending money overseas can consist of several different charges.
Transfer Fee A provider may charge a fixed fee or a percentage of the amount being transferred.
Exchange Rate Margin When Australian dollars are exchanged for another currency, the transfer provider determines the exchange rate applied to the transaction. The customer exchange rate may differ from the market or reference exchange rate. The difference is sometimes described as an exchange rate margin.
Intermediary Bank Fees Some international bank payments pass through one or more intermediary banks. These institutions may deduct additional charges while processing the payment.
Receiving Bank Fees The recipient's bank may also charge a fee for receiving an international transfer. For this reason, the amount originally sent may not always be the exact amount credited to the recipient's account.
Why Is the Exchange Rate Important?
Exchange rates determine how much foreign currency is received for each Australian dollar transferred. For example, if the AUD exchange rate becomes stronger against another currency, the recipient may receive more foreign currency for the same amount of Australian dollars.
Exchange rates change regularly because global currency markets move in response to economic conditions, interest rates, inflation, market activity and other factors. When examining the cost of an overseas transfer, it is useful to consider both the stated transaction fee and the exchange rate.
How Long Does It Take to Send Money Overseas?
International transfer times vary. Some transfers may reach the recipient within minutes or on the same day, while others can take several business days. Processing time may be affected by:
- ● The destination country
- ● The currencies involved
- ● The transfer method
- ● The payment method used by the sender
- ● Banking hours
- ● Weekends and public holidays
- ● Identity or compliance checks
- ● Intermediary banks
- ● Incorrect recipient details
An estimated delivery date is normally provided before or shortly after the transfer is submitted.
Are International Money Transfers Regulated in Australia?
International money transfers are subject to Australian financial crime and anti-money laundering laws. AUSTRAC regulates businesses that provide certain remittance and financial services in Australia. Financial institutions and remittance providers may be required to identify customers, maintain records, and report particular transactions or international funds transfer instructions.
As a result, a provider may ask customers for identification or information about the purpose and source of funds. These checks do not necessarily indicate that there is a problem with a transfer. They form part of the regulatory requirements applying to financial service providers.
Is There a Limit on How Much Money You Can Send Overseas?
There is no single transfer limit that applies to every international money transfer service. Banks and remittance providers may set their own daily, transaction or account limits. Larger transfers may require additional identity checks or supporting documents relating to the source or purpose of the money.
The requirements can vary depending on the provider, destination and circumstances of the transfer.
Do International Money Transfers Have to Be Reported?
Australian reporting rules can apply to international transfers. For electronic international transfers, reporting obligations generally apply to regulated financial institutions and remittance providers rather than requiring an individual customer to file a report for every transfer.
AUSTRAC also has separate reporting rules for certain cash transactions. Because financial reporting and tax obligations depend on the circumstances, people making large, business-related, investment-related or otherwise complex international transfers may need professional tax, financial or legal advice.
How Can Australians Stay Safe When Sending Money Overseas?
Before sending an international payment, confirm the identity of the recipient and verify all payment details. Australians should be particularly cautious when someone requests money unexpectedly, pressures them to make an urgent transfer or asks them to send funds to an unfamiliar account.
Common warning signs can include unexpected requests for money, investment opportunities promising unusually high returns, requests to pay fees before receiving money and instructions to transfer funds on behalf of another person. If you believe a payment may be connected to a scam, contact your bank or transfer provider as soon as possible. Australian consumers can also obtain scam information through Scamwatch.
Can an International Transfer Be Cancelled?
Cancellation depends on the provider and the stage of the transaction. A transfer may sometimes be cancelled if it has not yet been processed or paid to the recipient. Once the funds have reached the receiving bank or recipient, recovering the money may be more difficult.
If incorrect details were entered, the sender should contact the transfer provider immediately. Banks and transfer services may attempt to recall a payment, but successful recovery is not always possible.
What Should You Check Before Sending Money Overseas?
Before confirming an international transfer, check:
- ● The recipient's full name
- ● Bank account details
- ● SWIFT, BIC, or IBAN information where required
- ● The exchange rate
- ● Transfer fees
- ● Possible intermediary or receiving-bank fees
- ● The amount the recipient is expected to receive
- ● Estimated delivery time
- ● Transfer limits
- ● Identification requirements
Keeping a copy of the transfer receipt or transaction reference can also be useful if the payment needs to be traced later.
Frequently Asked Questions
Can I Send Money Overseas from an Australian Bank Account?
Yes. Many Australian banks support international transfers through online banking, mobile banking or branch services.
Can I Send Australian Dollars Directly Overseas?
It depends on the receiving bank and provider. Some international transfers can be sent in Australian dollars, while others require currency conversion before the recipient receives the payment.
Why Has My International Transfer Been Delayed?
A transfer may be delayed because of banking hours, compliance checks, incorrect information, intermediary banks, weekends, public holidays, or processing requirements in the destination country.
Can the Recipient Receive Less Than I Sent?
Yes. Currency conversion and fees charged by transfer providers, intermediary banks or receiving banks can affect the final amount received.
Do I Need an IBAN to Send Money Overseas?
Only when the destination bank or country requires one. Many European countries use IBANs, while other countries use different bank account identification systems.
Conclusion
Sending money overseas from Australia involves more than choosing a transfer method and entering the recipient's details. The exchange rate, transaction fees, banking information, transfer time, regulatory checks, and receiving method can all affect the transaction.
Before making an international payment, Australians should understand the total cost, confirm the recipient's banking details and review the transfer conditions carefully. For official Australian information about international money transfers, consumers can refer to resources from Moneysmart, AUSTRAC and Scamwatch.
For Australians looking to send money overseas, Remit5 provides international money transfer services with options designed for different destinations, currencies and transfer needs.
