Business bank accounts in Australia

What is a business bank account?

A business bank account is a transaction account that is specifically designed for businesses rather than for personal use. You can use your business bank account to pay for day-to-day business expenses, pay invoices and staff wages and also to receive payments from clients and customers.

How to compare and find the best business bank account

Here are a few key things to consider when picking a business bank account:

The monthly account fee

Some business bank accounts charge monthly fees, in exchange for more features and services than what's offered on a personal account. If you don't need larger transaction limits, staff-assisted cash deposits or specialised features, look for a business bank account with no monthly fee.

The branch network

Some banks don't have any physical branches in Australia. If you need to make staff-assisted transactions in a bank branch, make sure the bank account you choose has branches in convenient locations for your workplace or home.

The online portal

Does the account come with access to an online portal to help with your business reporting and tax obligations? Also, looking for an account that's already integrated with accounting software like Xero can help you manage your business admin.

Debit cards

Is there a limit to how many debit cards you can request, or is there a fee for each additional card? Look into this if you want to have multiple debit cards for multiple employees.

Staff-assisted transactions

If you regularly receive cash payments you should look for a business bank account that doesn't charge you to deposit cash. It's worth comparing the cost per transaction, with an account that charges a flat monthly fee for unlimited staff-assisted transactions to see which option would save you money.

The overdraft facility

This is a feature that's not widely offered with personal bank accounts, but it can be offered with business accounts. If your business needs an overdraft facility, look for an account that offers this.

International fees

If you travel a lot for work and plan to use the debit card to withdraw cash or make purchases overseas, look for a business bank account with low or no international ATM and foreign transaction fees.

Choosing my business bank account

"I was always on the lookout for a business account that had no account keeping fee - it didn’t seem reasonable to me that I can have a personal transaction account and pay nothing for it, but because the account was marked for business use, I had to pay $10 per month.

I can understand a fee if the business transacted hundreds of payments each week, but all of our payments flowed through a third party app, so there was only one deposit and a few dozen payments a month. So, I shopped around and settled on a bank that offered business transaction accounts for free."

Sarah Megginson

Personal finance expert + media spokesperson

Who needs a business bank account?

If you’re registered as a partnership, small business, company, sole trader or Trust in Australia then you need to open a business bank account, and cannot use a personal account. This is to ensure you meet your business tax obligations.

Not only is it a legal requirement, but small business bank accounts are also helpful to keep your business income separate from your personal finances.

Benefits of a business bank account

Business bank accounts offer a range of benefits, but some of the best include:

• Designed for businesses. Business transaction accounts are designed with businesses in mind, rather than everyday consumers. They include features that are beneficial to businesses, such as an overdraft facility.
• Keep your business money separate. Having a dedicated business bank account ensures you keep your business finances completely separate from your personal finances.
• Often integrated with business services. These accounts often include added support for businesses, such as seamless integration with accounting software to reduce the admin burden.
• Specialised online platform. Often banks will offer a dedicated online portal for business bank customers that’s tailored to their needs. For example NAB Connect is NAB’s online business banking tool that allows customers to manage remuneration payments and offers customised transaction reports.
• Larger transfer limits. Business bank accounts often allow for larger daily transfer and transaction limits than personal bank accounts to accommodate large invoice payments and staff wages, etc.
• Easier at tax time. With all your business expenses organised separately from your personal finances, it’s easier to manage your tax obligations at the end of the financial year. Your business expenses will be clearly identifiable in their own account.
• Manage your cash flow. With all your business expenses, payments and earnings in the one account, it’s easier to analyse your day-to-day business cash flow.
• Multiple people can use the account. You can opt for a joint business account if you’d like another person such as a business partner or co-owner to have access to the same account.

How to apply for a business bank account

1. Apply online. Once you've chosen an account, complete the online application on the bank's website (or you can also go in branch if the bank has branches).
2. Add your details. Fill in your name, age, address, contact details and residency status. You'll also need to provide details of your business, such as the business name, address, TFN and ABN.
3. Verify your identity. Once the bank has verified your identity with your driver's licence, passport or other forms of ID, your account will be opened instantly.
4. Fund your account. Transfer some money into your new bank account from another account or deposit cash into the account via a bank branch, ATM or Post Office. You'll soon receive your debit card in the mail.

Frequently asked questions

• Which account is best for a small business?

  A business transaction account is typically best for small businesses as it provides easy access to funds, multiple payment options and online banking features. These types of accounts usually have a monthly fee.

• What is the best bank account for a startup business?

  For startup businesses, a business transaction account with low fees and good online banking features is ideal.

• What do I need to open a small business bank account in Australia?

  To open a business bank account in Australia, you need proof of identity comprising 100 points, using things such as a passport, licence or birth certificate. You'll also need to provide an Australian Business Number (ABN), and details of the business structure.

• Can I use any bank account for my business?

  If you're a sole trader, you can use a personal bank account to make and receive payments. But it is advisable to use a dedicated bank account to keep personal and business finances separate, so you can make sense of your deductions and income easily at tax time.

Written by

Alison Banney

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 659 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living