Australia currency guide: The Australian dollar (AUD)

Australia and the United States share many cultural commonalities. These make Australia a common destination for American travelers, students, and businesspeople.

Whether it’s the country’s pristine beaches, rugged outback, or vibrant cities that pique your interest, one thing’s clear: Australia offers something for everyone.

If you’re planning to travel to the Oceanic nation for business or pleasure (or even if you’re just sending money to someone in Australia), you’ll need to learn about the Australian dollar. This guide offers tips on exchanging US dollars for Australian dollars and answers to commonly asked questions about using Australia’s currency.

Note: Before making travel plans, check the US Department of State website for the latest travel advisory information.

What is the currency in Australia?

Australia’s currency is the Australian dollar (AUD). It’s often denoted by the symbol “A$” to help distinguish it from other dollar currencies.

Currently, circulating banknotes range from 5 AUD to 100 AUD ($5, $10, $20, $50, $100). Coins range from 5 cents to 2 AUD (5¢, 10¢, 20¢, 50¢, $2). Note Printing Australia, a subsidiary of the Reserve Bank of Australia, prints the country’s banknotes, while the Royal Australian Mint in Canberra produces coins.

People recognize AUD banknotes for their detailed designs and vibrant colors printed on polymer. The Australian currency also serves as the official currency for some Pacific Island countries, including Kiribati, Nauru, and Tuvalu.

History of the Australian dollar

Currency was first used in Australia following European colonization in the late 18th century. Colonists in New South Wales used makeshift currencies—like international coins, tradespeople’s tokens, or even rum—during this period instead of official coins and banknotes. Ultimately, Australians used British pounds, shillings, and pence as the country’s official currency to align more closely with the British monetary system.

It’s also important to note that, before colonization, Indigenous Australians used a barter trade system involving things like food, tools, shells, and raw materials.

The Commonwealth of Australia, a self-governing dominion within the British Empire, was established in 1901. Less than a decade later, the Australian pound was introduced and pegged to the British pound sterling.

Over the decades, a series of important laws or proclamations have guided the evolution of Australia’s currency:

Legislation/Proclamation	Result
Currency proclamation of 1813	The “holey dollar” (featuring a hole in the center) and “dump” currencies becomes legal tender in New South Wales
Sterling Currency Act of 1825	Officially adopts the British pound sterling as legal currency
Australian Notes Act of 1910	Puts the responsibility of currency minting on the Commonwealth Treasury
Bank Notes Tax Act (1910)	Imposes a 10% tax on banknotes issued by private banks
Reserve Bank Act of 1959	Puts Australian banknotes under the authority of the Reserve Bank
Decimal Currency Act of 1965	Facilitates the shift from pounds, shillings, and pence to dollars and cents

 

7 tips for exchanging US dollars for Australian dollars

There are plenty of options for converting your USD to AUD in Australia. But with so many, finding the best money exchange service for you isn’t always easy. Here’s what to consider when exchanging for Australian money.

1. Research and compare exchange rates

The Australian dollar is a floating rate currency. Therefore, its rate changes regularly. Further, rates for Australia’s currency differ among money exchange services. As such, you’ll want to compare rates across different sources, like banks, currency exchange kiosks, and online platforms. You can always go to Western Union online to check out the latest USD-to-AUD exchange rate and compare it with rates at money exchangers in Australia.

When using your debit or credit card to make a purchase, you might not know what exchange rate you’re getting at the time of sale. Therefore, converting your currency beforehand is a good idea if you want to get a more transparent (and potentially more favorable) rate.

2. Notify your bank ahead of traveling

Let your bank know about your travel plans to Australia to avoid the hassle of a frozen bank account while traveling. Depending on your bank, you may be able to do this online, using your mobile banking app, or by calling customer service. This will enable you to exchange for Australian money and use your debit card without issues.

3. Avoid exchanging money at airports, hotels, and tourist areas

Airports and hotels charge a premium for the convenience of exchanging Australian money, so avoid money exchangers at these locations if you can. If you absolutely need to exchange money at the airport or your hotel upon arrival, exchange a small amount to get you by. Then, exchange a larger amount later when you can get a more favorable rate.

4. Consider commissions and fees

Whether you use a credit card, exchange for Australia’s currency at a local bank, or withdraw AUD from an ATM, pay mind to transaction fees.

Australian money exchangers may charge currency conversion fees or commissions for their services. Or you may face international transaction fees when paying with a credit or debit card. And that’s just a sampling of the fees you might encounter.

To avoid extra fees, ask money exchangers:

• If they deduct fees from the transfer directly
• To estimate the total transaction fees and provide an itemized list
• If you can pay fees upfront
• If there’s a fee for the recipient (when sending money to Australia)

Your goal is to receive a transparent fee structure to avoid being taken advantage of or scammed. Western Union’s transparent fee structures mean you’ll know upfront exactly what charges you’ll pay—whether you send money in person, online, or via the Western Union^® money transfer app.

5. Opt to be charged in the Australian currency when withdrawing money from ATMs

While your first thought might be to exchange money at a bank or currency exchange bureau, don’t overlook ATMs. They’re actually among the best ways to exchange currency in Australia (and elsewhere).

ATMs are convenient and prevalent throughout the country. If you plan to use an ATM on your trip, opt for withdrawals in Australia’s currency. This helps you avoid dynamic currency conversion (DCC) fees—charges incurred when paying in your home currency instead of the local one. DCCs generally result in less favorable exchange rates.

6. Exchange money in Australia instead of the US

Don’t exchange your USD for AUD in the US. Wait until you’re in Australia instead. Getting Australian currency is no problem once you’ve arrived in the country. There are plenty of money exchange services to choose from, which boosts the odds of finding a favorable exchange rate.

7. Use reputable exchanges

You’ll find many exchanges throughout Australian cities. However, it’s best to avoid unlicensed Australian money exchangers at all costs. These businesses may lure you in with seemingly great rates. But they’re more likely to sell counterfeit banknotes or slam you with high fees.

Instead, only use reputable, licensed exchanges like banks and authorized exchange bureaus. Consider finding a local Australian Western Union agent location, which can help you convert your US dollars to Australian currency. Alternatively, you can always exchange money online with Western Union, which uses encryption, transfer tracking, and other security features to protect your money.

Using money in Australia

Because Australian money consists of dollars and cents, it’ll feel a lot like using USD. Still, there are a few things to keep in mind when using money in Australia.

Can you use US dollars in Australia?

Unlike some tourist-heavy destinations, USD is rarely accepted for payments in Australia. Most Australian merchants will require payment in AUD, so you’ll need to use Australian currency for your transactions. You can do this by exchanging money, using ATMs in Australia, or relying on credit cards that work internationally.

If you’re in a pinch, you can quickly exchange USD to AUD using Western Union online, via the mobile app, or in person at an agent location.

Tipping etiquette in Australia

Workers in Australia don’t rely as much on tips for their income as workers in the US do. Therefore, tipping in Australian money isn’t expected, but it’s still appreciated. Before tipping, check your bill or ask your wait staff if a service charge has already been added. A mandatory service fee may be added if you dine in a group of 10 or more people.

Other service workers, like tour guides, taxi drivers, and hotel staff, also won’t expect a tip. That said, they’d certainly appreciate a small gratuity for their service.

Where to get Australian dollars near me?

Banks, currency exchange services, and online platforms offer currency exchange services. Additionally, you can exchange for Australia’s currency at one of the country’s many post offices, known as Australia Post.

If you need to exchange money fast, Western Union agents are ready and waiting to help. Locate a currency exchange near you to get started today.