How much money can I transfer overseas from Australia, and what is the best way to move funds internationally? 

Here is everything you need to know about sending large amounts of money from Australia—from regulations to what to look for in a money transfer service.  

Is There a Limit on How Much Money You Can Transfer Overseas?

The short answer is no, there is no limit on the amount of money you can send and receive to and from Australia. According to AUSTRAC, the country’s anti-money laundering and counter-terrorism financing regulator, you can transfer as little as $1 or $50,000 as long as you use the services of a bank or money transfer company. 

That said, some banks and money transfer businesses have their own limits when it comes to the amount you can move overseas. What’s more, money transfer services might not work with all currencies. In other words, you might not be able to send money to certain remote destinations or smaller countries or you could get offered higher rates or fees. 

Australian Money Transfer Regulations

Although there are no restrictions set by the government on the amount you can transfer overseas via banks and remittance service providers, if you send (or receive) money by mail, courier, air or sea freight and the combined value is over $10,000, you will need to declare it. 

How and what do you need to declare?

Generally, people who move larger amounts of money overseas must declare it in order to comply with Anti-Money Laundering and Counter-Terrorism Financing regulations in the country. This includes all cash and non-cash forms of money, such as:

  • Cheques and traveller’s cheques
  • Bills of Exchanges
  • Postal, money, and other orders
  • Promissory notes
  • Bearer bonds
  • Other Bearer negotiable instruments that do not specify the amount to the paid or the payee

Luckily, the procedure to declare money transfers over $10,000 is pretty straightforward—all you need to do is complete the free AUSTRAC electronic form before you send the money. If you are travelling with money overseas, you also need to complete a declaration form before passing through customs. 

Learn more about how to cash a cheque in Australia

What Is the Best Way to Transfer Money Overseas From Australia?

There are several options, although bank transfers, bank drafts and remittance service providers.

Bank Transfers

With a bank transfer, you are sending money from your bank account directly into an overseas account.

While bank transfers are convenient and reliable, they are the more expensive option of the three. In fact, according to the Australian Competition and Consumer Commission (ACCC), Australia’s big four banks are consistently more expensive than other money transfer services. Fees tend to range from 3 to 4% of the transaction amount, while exchange rates can go up to 6% higher than what you’d get with online money transfers. 

Last but not least, bank transfers can take anywhere between 3 to 5 days to go through, although some banks can move money in one to three days (not including public holidays and weekends). 

Money Transfer Companies

Unlike banks, online money transfer companies have very low or no transfer fees and offer the best exchange rates. If fees are charged, they range between 0.35% and 0.45% of the transfer amount or at least three times less than banks.  They’re faster as well, with a delivery time ranging from a couple of minutes to up to 3 days.

Money transfer services are also quite flexible—you can move money from your online banking account, debit or credit card, or use an internet bank payment. The recipient, on the other hand, can receive the funds in their bank account or collect the money in cash at an agent or a local branch.

International money orders

This method involves sending an internationally guaranteed cheque issued by your bank. Also known as an international bank draft, the cheque is sent overseas by post and the recipient can either cash or deposit it in their bank account. International money orders are much slower than money transfer companies, MoneySmart says, and thus not suited to those who want to send funds abroad urgently.

How to choose the best money transfer service 

Here are some of the things you should look for when sending money from Australia:

Exchange rates

This factor has the biggest impact on the cost of the overall transfer. To save on money transfer expenses, compare providers and choose the one that offers the rate closest to the mid-market advertised exchange rate, i.e. the middle price between the buy and sell price on the international money market. It’s also a good idea to find a provider that offers an exchange rate guarantee, which, as the name suggests, will protect you in case the rate changes between the time you send the money and the time it is received. 

Fees

Providers usually charge three types of fees, including

  • Flat fees per transfer (usually up to $15)—the most affordable option for sending large sums
  • Percentage fee per transfer (about 0.40% to 0.55%), making them more suitable for transfer of smaller amounts of money
  • No fees, although these companies charge a slightly higher markup on the exchange.

Others charge fees to specific countries, for instance, Remitly has no fees when you are sending money from Australia to certain countries, like India and Germany,  but charges between $1.99 and $2.99 for international transfers to the USA. 

You should also look into whether the recipient will need to pay fees.

Destination and currency offer

Before transferring money check whether the service can execute the transfer, especially if you are sending funds to a more remote location or less-commonly used currency. Some providers like Xe offer up to 139 global currencies, while others have 20 or 30.  

Transfer limits

As mentioned above, most providers have limits on the amount of money they can move internationally.  For instance, Western Union has a daily limit of $5000. Some services also have minimum transfer requirements, such as OFX (USD 150), which might make them unsuitable for those sending smaller amounts abroad to friends or family. 

Features

Different money transfer services come with various perks. For example, Western Union can arrange a cash pickup or move the funds to a money wallet. Most companies also have rate alerts informing you of the latest exchange rates right in your inbox or via their app, while many offer great referral programs and new customer offers that could help you save a few dollars on your next international transfer. 

Security 

Finally, look into the security measures employed by the company you are using, as well as whether the service is registered with regulators in different countries around the world. Should you encounter an issue with the transfer, you could file a complaint with the Australian Financial Complaints Authority. However, it’s best to avoid this situation, which is why researching and comparing money transfer companies is a must. 

1. How do I send a large amount of money overseas from Australia?

When sending a large amount of money abroad, it might be best to use the services of a money transfer company that charges a flat fee. Try to avoid services with a commission on each transfer to cut costs. 

2. Do I have to pay tax on money transfers from Australia?

No, you don’t need to pay taxes when you make an international transfer from Australia to another country. Gifts, inheritance, and windfalls are non-taxable, but there are other implications of gifting money in Australia.

3. How much money can I transfer overseas from Australia to the USA?

There is no limit to transferring money from Australia to the USA. The only limits you may face are your money transfer service’s daily or upper limit on overseas transfers.