Your Australian Bank Account When You Move Abroad (2026)
Key takeaways
- Keeping an Australian bank account as a non-resident is allowed. Banks are not obliged to close accounts of customers who move overseas, though individual bank terms vary.
- You must notify your bank of your overseas residential address and update your foreign tax residency (CRS/FATCA) details once you become a foreign resident for tax purposes.
- Non-resident withholding tax on interest is generally 10% where you have given the bank an overseas address; without an overseas address the rate is 47%.
- Non-resident interest withholding is a final tax — you do not include that interest again in an Australian tax return.
- Keep at least one Australian account and a working card and app before you leave: reopening or reactivating an account from overseas can be difficult.
- Compare the true cost of moving money abroad — the exchange-rate margin usually costs more than the flat transfer fee.
Can you keep an Australian bank account after moving overseas?
Yes. There is no Australian law forcing you to close a transaction or savings account simply because you have moved abroad, and most major banks let long-term expats retain their accounts. What changes is your tax status. When you cease to be an Australian resident for tax purposes, your bank must treat you as a foreign resident and apply non-resident withholding tax to interest income, as set out by the Australian Taxation Office (ATO). Bank terms and conditions still apply, so check whether your particular product allows an overseas address and whether card delivery or identity re-verification is restricted for offshore customers.
Tell your bank you are moving — before you go
Update your residential address, phone number and email while you still have easy access to a branch, your card and two-factor authentication. Banks in Australia are also required to collect information about your tax residency under the Common Reporting Standard (CRS) and, for US persons, FATCA. If you become a tax resident of another country, you will usually be asked to complete a self-certification form declaring your new country of tax residence and your foreign Taxpayer Identification Number. The ATO explains the residency and reporting framework on its non-resident withholding tax pages. Giving your bank a genuine overseas address is what unlocks the lower 10% withholding rate rather than the penalty rate.
How interest is taxed once you are a non-resident
When you are a foreign resident for tax purposes, your Australian bank withholds tax from interest before it reaches you. According to the ATO, if you have provided your overseas address the rate withheld is generally 10%; if you have not given an overseas address, tax is withheld at 47%. This is confirmed on the ATO’s guidance for investing in bank accounts and income bonds and its withholding rate page. The 10% figure reflects the rate agreed in most of Australia’s tax treaties; the exact rate can depend on the treaty with your new country of residence.
Importantly, non-resident interest withholding is a final tax. The ATO advises that where withholding tax has been deducted from interest earned while you were not an Australian resident, you do not include that interest in your Australian tax return again. That simplifies things: you are not double-taxed in Australia, though your new country of residence may tax the same interest under its own rules, subject to any treaty relief.
The role of your Tax File Number (TFN)
A common cause of the 47% rate on savings and term deposits is a missing or unquoted TFN combined with no overseas address. For Australian residents, not quoting a TFN triggers TFN withholding at the top marginal rate plus the Medicare levy. For non-residents, the correct path is to supply your overseas address so the 10% non-resident rate applies. Where an account is held jointly by a resident and a non-resident, the withholding depends on whether the resident has quoted their TFN or ABN — if they have not, TFN withholding can apply to the whole account. Review the ATO’s interest, unfranked dividends and royalties guidance for joint-account rules, and if your rate looks wrong, your first call should be to your bank.
Moving money between Australia and your new country
Keeping an Australian account is useful for receiving residual income — rent, dividends, superannuation-related payments or a final salary — and for paying Australian bills. When you transfer larger amounts abroad, the headline transfer fee is rarely the real cost: the margin built into the exchange rate usually matters more. Compare the total amount that lands in the destination account across several providers, and be aware that transfers of physical currency or bearer instruments of AUD 10,000 or more (or foreign equivalent) into or out of Australia must be reported to AUSTRAC. Ordinary electronic bank transfers are handled by your bank’s own reporting. Keep records of large transfers in case either tax authority asks about the source of funds.
Practical checklist before you leave
Keep at least one Australian transaction account open with online and app access, and make sure your mobile number for two-factor authentication will still work overseas or is switched to an app-based authenticator. Note card expiry dates, because banks generally cannot post a replacement card to an overseas address and may only reissue once you return to live in Australia. Set up any Australian direct debits you still need, cancel the ones you do not, and download or export your statements. If you hold term deposits, decide what happens at maturity before you go. Finally, tell the ATO your correct residency position: your residency for tax purposes drives the withholding rate and how — or whether — you lodge an Australian return.
How Flyto can help
Flyto moves households from Australia to Europe and worldwide, door-to-door, and our advisors help you line up the practical admin — banking, licences and healthcare cover — alongside the physical move so nothing is left until the last week; get a quote.
Frequently asked questions
Do I have to close my Australian bank account when I move overseas?
No. There is no legal requirement to close it, and most banks allow non-resident expats to keep accounts open, subject to their terms. You do need to update your address and tax-residency details once you become a foreign resident for tax purposes, per the ATO.
What tax will I pay on interest as a non-resident?
Generally 10% withholding if you have given the bank your overseas address, or 47% if you have not, according to the ATO’s investing in bank accounts and income bonds guidance. The 10% reflects most tax-treaty rates.
Is the withholding tax a final tax?
Yes. The ATO states that interest taxed by non-resident withholding while you were not an Australian resident is not included again in your Australian return — the withholding is a final tax.
Why is my bank withholding 47% on my interest?
Usually because the bank has no overseas address on file and no valid TFN, so the penalty rate applies. Give your bank your overseas residential address to move to the 10% rate; if it still looks wrong, contact the bank, as noted in the ATO withholding rate guidance.
Can I still use online banking and my app from abroad?
Generally yes, but confirm that your two-factor authentication does not rely on an Australian mobile number you will lose. Banks usually cannot post a replacement card overseas, so note your card’s expiry date before you leave.
Do I need to report money I transfer to my new country?
Ordinary bank transfers are reported by your bank. Physical cash or bearer instruments of AUD 10,000 or more moving into or out of Australia must be reported to AUSTRAC. Keep records of large transfers for both tax authorities.
Sources
- Australian Taxation Office — Interest, unfranked dividends and royalties (foreign residents)
- Australian Taxation Office — Investing in bank accounts and income bonds
- Australian Taxation Office — Withholding rate (investment income to foreign residents)
- Australian Taxation Office — Non-resident withholding tax
- Australian Taxation Office — Your tax residency
- Australian Taxation Office — myTax instructions: interest
- AUSTRAC — Cross-border movement of physical currency
- Smartraveller (DFAT) — Money before you go