Compare the Best Business Bank Accounts in Australia for 2024

When you’re starting a business, there are a lot of tasks to tick off your to-do list. After you’ve got your big idea nailed down and you’ve put the wheels in motion to bring it to life, one of the first things you’ll likely do is think about your businesses finances. 

There are lots of solutions that could fit your needs, from various Australian providers. Some entrepreneurs will end up just going with the same provider that they use for their personal finances, while others will shop around for a solution that has a more business-focused offering. 

It never hurts to check out what’s on the market, and get your head around what’s available. Business needs are diverse, and one provider may be a better fit than another, depending on what your objectives and growth goals are.

You might look at one of the “big four” banks for a solution, you might look at a non-traditional online bank, or you may not look at a bank at all. Did you know that there are almost 100 banks operating in Australia? And there are over 800 fintechs, some of which have very competitive offerings to traditional banks. All of this is to say - there’s a lot of choice out there!

In this article, we’ll look at the differences between “business accounts” and “business bank accounts”, look at offerings from key providers, and explore how you might find the right solution for your needs.

What is a business bank account?

A business bank account or business account is a type account that's opened in the name of an entity — as opposed to an individual. 

Those who’ve tried to operate their personal and business affairs from the same account know this can get quite complex as your business grows. That’s why dedicated business accounts exist. They’re designed to provide business owners with the support, functionality and visibility they need to manage their business.

What’s the difference between a business bank account and a personal bank account?

There are some key differences between personal and business bank accounts that differentiate the two.

Where personal bank accounts are typically no- or low-fee, business bank accounts will likely have fees attached. It’s typically only around $10 a month, but it’s there to cover the extra services they provide.

And speaking of services, when compared against personal bank accounts, business bank accounts provide an expanded service offering. You’ll likely find specialised merchant services, business loan and overdraft facilities, term deposit functions, invoicing tools, and increased reporting and accounting features. Some even have connected foreign currency accounts to enable international banking.

Due to the nature of the account, business bank accounts have higher daily spend limits, too. You’re not just paying for your groceries or paying off your credit card—you’re paying vendors and clients.

What’s the difference between a business account and a business bank account?

The difference between a business account and a business bank account is that the latter is provided by a financial institution that holds a banking licence, commonly known as banks.

A business account generally refers to an account and financial solution provided by a financial institution that does not hold a banking licence but does hold other regulated licences.

Many modern fintechs, like Airwallex or Wise, have opted not to become a bank. Airwallex is able to build a business account service that covers payment collection, treasury, transfers and payouts, invoicing, expense management and cards.

Can I open a business account (from a FinTech) alongside my business bank account?

Yes. Business accounts are great for getting started, borrowing and moving money domestically. Many businesses quickly realise the limitations and fees associated with their business account as they grow - especially internationally - and soon opt for fintech providers who offer purpose-built business solutions such as international payments, invoicing, company cards and expense management.

Do I need a business bank account?

In Australia, almost all registered businesses, from small startups to large corporations, choose to open business bank accounts - or a specialised business account from a non-bank financial provider - to manage their finances. 

For many businesses, it’s also a legal requirement. If your business is registered as a company, partnership or trust in Australia, you are required to open a business account or business bank account for tax purposes.

Sole traders and freelancers, on the other hand, might opt not to open a business bank account if their business transactions are minimal or closely tied to personal finances. Even so, many of them will find that a business account or business bank account is a valuable way to simplify tax reporting and separate their personal and business finances for better financial clarity.

What are the benefits of a business bank account?

It’s not hard to see the benefits of a business account or business bank account for businesses.

1. Firstly, they’re made specifically for businesses, so they have more functionality built into their service. 

2. They’re also generally safer. A business account or business bank account clearly separates your personal finances from your business finances, adding that extra layer of security between personal and professional dealings.

3. Business accounts also make it easier to track your business dealings. If you find  a good end-to-end solution, all of your operations are all there in one place, so you can easily see your incomings and outgoings.

4. Lastly, a well put together business account or business bank account can help prepare you for the future. If you have helpful reporting tools, you can more accurately analyse your business’ activity and forecast figures for the next quarter.

Top 5 Business Bank Providers in Australia

Australian businesses have often looked to our largest banks - otherwise known as the “big four” - for their financial solutions. We’ve rounded up the top business accounts from these providers, for you to get a general feel of what’s available. We’ve also included our Airwallex Business Account in this list, so you can get an idea of what a leading non-bank provider can offer. 

Presented in no particular order, we’ll break down the fees, features, benefits and limitations of these popular options. 

ANZ Bank Business Extra Account

Established in 1828, ANZ is the largest banking group in the region. It provides banking and financial products to over 8.5 million business and retail customers in markets around the world. Their main business offering is the ANZ Bank Business Extra Account.

Fees

• $22 monthly service fee

• 3% international transaction fee

• $0.80 fee for staff-assisted transactions, merchant deposits, and cheque transactions

• $5 international ATM fee

Features and benefits

• Syncs with accounting platforms like Xero and MYOB

• Syncs with Apple Pay, Google Pay, Samsung Pay

• Access to an ANZ Business Visa Debit Card

• Overdraft facility available

• ANZ Falcon security protection

Limitations

• There are only 50 free transactions included with the fee.

• High international transaction fees

• No option for local international payments (SWIFT only)

Take a closer look at the account here; https://www.anz.com.au/

Commonwealth Bank Business Transaction Account

Commonwealth Bank is another popular choice for Australian residents and businesses, servicing around 17 million customers, meaning they have the biggest customer base of the big four. The bank was founded in 1911, and commenced operations in 1912. 

Commonwealth Bank has several other brands within their group, including Bankwest and Colonial First State. Their Business Transaction Account is currently their primary offering for Australian companies.

Fees

• Switchable $0 - $10 monthly account fee option

• $3 per assisted transaction

• $15 overdraw fee

• $5 + 3% international ATM fee

• 3% international transaction fee

Features and benefits

• No minimum account balance

• Comes linked with a Visa Debit Card

• Syncs with accounting platforms like Xero and MYOB

• Syncs with Apple Pay, Google Pay

• Real-time banking alerts

• No transaction limits

Limitations

• High international transaction fees

• No option for local international payments (SWIFT only)

• Only one business debit card per account

Take a closer look at the account here; https://www.commbank.com.au/

National Australia Bank Business Everyday Account

National Australia Bank (NAB) is another choice used by many businesses. Founded in 1858, NAB services around 8.5 million business and retail customers, a similar customer-base size to ANZ. 

The NAB Group of companies also includes online-only bank UBank and Bank of New Zealand. Their Business Everyday Account is their main offering for Australian companies. 

Fees

• $10 account fee

Features and benefits

• Linked NAB Business Visa Debit Card available

• Free assisted transactions

• No ATM fees

Limitations

• This option has fewer features than other business bank accounts

• High international transaction fees

• No option for local international payments (SWIFT only)

Take a closer look at the account here; https://www.nab.com.au/

Westpac Bank Business One Low Plan

Our final spotlight offering from the big four is the option from Westpac. Westpac is the oldest of the big four, dating back to 1817, when it was established under the name 'Bank of New South Wales'. The business changed its name to Westpac Banking Corporation in 1982. 

Westpac manages a portfolio of financial brands including St.George, Bank of Melbourne, BankSA, BT and RAMS, which together service 12.7 million customers. Their main business account is called the Business One Low Plan. 

Fees

• $10 monthly account fee

• $1 for in-branch deposits or withdrawals

• $0.25 - $0.25 telephone banking enquiry

• $5 + foreign surcharge for foreign ATMs

• 3% international transaction fee

• $15 overdraw fee

Features and benefits

• Unlimited electronic transactions

• 25 assisted transactions

• Complimentary online invoicing tool

• Business Mastercard included

• Syncs with accounting platforms like Xero and MYOB

Limitations

• There are a few more fees associated with this account—the charges for telephone banking enquiries are an unusual one.

• High international transaction fees

• No option for local international payments (SWIFT only)

Take a closer look at the account here; https://www.westpac.com.au/

Airwallex Business Account

We’ve included the Airwallex Business Account as a comparison, so you can see what a non-bank alternative looks like.

Fees

None. Airwallex doesn’t charge any monthly account fees, international fees, withdrawal fees, telephone enquiry fees—nothing. Just pay a small FX margin whenever you convert funds into different currencies, which is either 0.3% or 0.6%.

Features and benefits

• Create multi-currency business accounts. Create individual foreign currency accounts for 23+ currencies so you can send, hold, and receive international currencies, and avoid double conversions.

• Global FX and International Payments. Make Money Transfers to over 150 countries at interbank rate.

• Access virtual debit cards. Create multiple virtual debit cards in seconds, and start using them immediately. 

• Physical multi-currency cards. Create and order physical debit cards for your team and have them sent out instantly, without needing to visit a branch.

• Expense management. Throw away the receipts and replace repetitive work and clunky software with an accurate, zero-touch experience your employees will love.

• High-impact integrations. Your Airwallex Business Account syncs seamlessly with leading accounting softwares like Xero, so you can keep all your financial information up to date, making reconciliation a breeze.

Get started right away. As soon as your account is verified, you can use it right away. No waiting around for authorisation.

What should I look for in a business bank account?

Here are some key things to think about when comparing your choices of business accounts and business bank accounts, to help you find the best solution for your small business. It’s not exhaustive, but it can help make the process easier.

• Account fees. Have a look at the account fees and see if they match the service level offering. And keep in mind that some business accounts have a fee-free option.

• International fees. As a growing business you might be doing business with international entities, so it’s important to find a provider that offers competitive rates to send and receive money internationally.

• A strong branch network. Some international banks don’t have any branches in Australia, so if you need to deal directly with that bank, make sure they have a partner bank or provider in Australia that you can work with.

• Does it have an online platform or portal? A comprehensive online business portal will make it much easier to manage your finances.

• Overdraft facility. You won’t always need overdraft facilities, but it’s comforting to know it’s there when you do.

• Account limits. Some business accounts limit the number of people able to use the account, so check this first.

5 things to consider if you’re a small business opening a business account

Small businesses may have additional considerations. Finding a business account built specifically for small businesses in Australia can be challenging, but there are a few key criteria to look for in your search. 

Fees

Yet again - the first thing to look at is fees! Small business accounts should have low or no monthly fees and should not charge penalties for not achieving minimum deposit thresholds. When cash flow is tight, every dollar counts and so this flexibility will enable your business to continue to use capital where it's needed most.

While you’re evaluating fees, it’s also worth looking at overall value. It may be worth paying a little bit more for one centralised product or service, rather than several smaller fees for many. This could help you save money overall, and will also likely save you precious time - while avoiding frustrating tasks like manual data transfer. 

Scalability

It's also critical to find a small business account that will grow with you. As your business grows, so do your payment needs and their complexity. 

By opening a small business account that has features like international payments, online payment processing and card creation from day one, you save yourself countless hours of having to switch in a year or two when you've outgrown your current provider. 

Products and services designed for small businesses

Different providers may have valuable products or services which can help you boost efficiencies or streamline your capital. 

For example, Airwallex offers a powerful alternative to the traditional business saver offered by the big banks; Yield. Yield gives you the opportunity to earn competitive returns on your multi-currency balances - with no minimum lock-up period required.

Offers

Many financial providers are invested in seeing your business grow, so offer significant discounts to help you gain access to their services while your business is just getting started. Sometimes these are attached to certain types of accounts, and sometimes they are attached to a program - like Airwallex’s program for founders, Airwallex for Startups. 

Interested in learning more about our offer for Airwallex for Startups members? We’ve created an exclusive Airwallex package, designed to skyrocket startup growth. The deal includes;

• $50k free FX for your next cap raise: That’s 0$ fees and 0% margin on your first AUD $50k in FX conversions.

• $50k in payments acceptance rebates: Be rewarded for onboarding your first customers with AUD$50k back in your pocket.

• Free cards for your founders: Make sure you’re spending smart with Airwallex’s flexible employee cards.

Please note: This offer is available for new customers only. Eligibility requirements apply. Must be used within six months of signing up. Terms and conditions apply.

Visibility and transparency 

When you’re running a small business – or any business – money is moving everywhere. Supplier and vendor payments, subscriptions, customer transactions, bills, employee expenses… The list goes on. 

As we mentioned before, you know that every dollar is critical. Founders should keep an eagle eye over their money movements, so a birds-eye, real-time view of money movement is absolutely essential.

What are the common financial operations challenges for growing companies?

When you’re looking at providers, it can be helpful to think about future hurdles and opportunities, as well as challenges that you’re currently facing. 

Some of the top financial operations challenges small businesses encounter generally include; 

• Making and taking online payments; Spending online and accepting digital payments efficiently is likely to be pretty important for your business as it grows. Circulating bank details to customers, taking credit card payments over the phone or using clunky payment providers with limited capabilities… This can create a frustrating customer experience and cost you and your team hours each week.

• Costly conversion fees; Massive conversion fees can be a nasty surprise that most businesses encounter. Sometimes you can even be hit with multiple conversions when dealing with merchant fees. Ouch!

• Misplaced or mismanaged bills; Bills can be tricky - pay them late, and you risk being hit with hefty fees. Misplace them, and could create an administrative disaster for yourself when it’s time for reconciliation. Multiple approvals of bills can create even more chaos if you don’t have the right workflows set up properly. Creating a solid system for your bill payments can save you a lot of trouble.

• Manual data entry between admin software; Data entry is one of the biggest bugbears for any professional – it’s time consuming and can lead to human error, which could cause stress for your team. Plus, moving data around manually is often risky when it comes to security. You want to look out for opportunities to integrate your programs, so that your financial data can easily move between platforms, and through as few hands as possible.

These are just four of the eleven common financial operations challenges we found that SMEs face. Read about other challenges, and how to tackle them, here.

Why open a business account with Airwallex?

Airwallex can help small businesses grow rapidly. Why do our SME customers love us? Here’s just a few reasons why. 

1. We help companies easily access a global market and suppliers

Accessing global suppliers easily can bolster a local business, while taking your business to the world can lead to untapped growth opportunities. However, doing either of these things can trigger lots of questions for small business owners;

• How can you pay local suppliers and vendors to support global production and logistics? 

• Do you need local bank accounts to accept and make international payments? 

• How can you optimise your customer experience so that they can pay in their local currency and preferred payment method?

• Is it worth selling your product or service globally when you’re being hit with foreign exchange and conversion fees, over and over again? 

Airwallex can help solve these problems, making international expansion more accessible than ever before. 

2. Forget opening local bank accounts

Skip the excessive paperwork and open your Airwallex Global Account online in minutes. Collect payments from global customers in their preferred currency and spend your proceeds later in the same currency. Better yet, you can get started with a Global Account for free, and it only takes a few minutes to sign up.

3. Skip conversion fees and costly foreign exchange (FX) rates

With our FX and Transfers features you can access market-leading FX rates no matter the transaction size and rapidly pay suppliers in 150+ countries and regions and 45+ currencies.

4. Take payments from popular international providers 

Accept Payments from customers around the world through over 160+ payment methods, including Apple Pay, Google Pay, WeChat Pay and Alipay.

We’ve helped businesses around Australia scale to new destinations with our incredible FX infrastructure. Together, we’re taking amazing Aussie ideas to the world.

What do Australian businesses say about Airwallex’s Business Accounts?

We’ve spoken to a number of our customers across industries to learn how they have used Airwallex Business Accounts to streamline their financial operations. Here’s just a few excerpts from our portfolio of success stories.

July

Airwallex is July’s long-term global financial partner, with Airwallex’s Payments Solutions contributing to their seamless global finance processes.

“Working with a traditional bank was such a slow process, and their product suites often don’t connect together well. Airwallex is simple to set up and use, and we’re able to easily pay our factories and contractors overseas,” says Richard Li, Co-Founder of July.

“Having Airwallex as our global trusted partner means we can spend less time on the phone to the bank, and more time instead focusing on growing our business both domestically and internationally.” 

JobAdder

Prior to finding Airwallex, the JobAdder team were using debit cards from one of the big four, and the previous Executive was using a business credit card from a popular provider. Implementing Airwallex changed everything. 

“When analysing how much money we could potentially save when we moved to Airwallex initially – based on the transactions we had - I estimated that annually we would save about $AUD50,000 just by reducing the transactions commission on the credit card and on other company debit cards with the big four banks,” reflects Tomy Marzukie, Finance Manager, of JobAdder.

“I think for us, it's a game changer. It’s changed how we process our payments and also receive payments as a business that operates in different regions. It’s really important for us to help us streamline operations.”

Poppy Lissiman 

Poppy Lissman is a truly global brand loved by the fashion-forward around the world. With our Global Accounts, Borderless Cards and FX and Transfers, Airwallex has helped this family business soar to new heights.

“Traditional banks tend to have high fees for foreign exchange, along with a less user-friendly online portal. Airwallex offers a low exchange rate and links directly into Xero, making it flexible and easy to use – and it’s become absolutely essential in keeping our costs down,” explains Skip Lissima, Executive Chairman of Poppy Lissiman.

“For a global fashion label using Airwallex is a great way to keep your costs down as low as you can while also being able to utilise their great systems. We want to continue working with Airwallex to keep figuring out how we can do business better.”

Vinomofo

Vinomofo CFO Kieran Donovan was looking for ways to boost their bottom line when he began focusing on operations in Singapore. He came across Airwallex, which he soon found to be his preferred solution over a Singapore banking partner.

“There aren’t many initiatives we could implement to save our business around $100,000 annually without a huge amount of effort. It’s a pretty easy win, to be honest, and something I’d encourage any business with foreign exchange exposure to look into,” says Kieran Donovan, CFO of Vinomofo

“We’re always keen to work with innovative partners like Airwallex who can help us do business better. It means we can free up more time and money to focus on our mission of building our wine-loving tribe and having fun while doing it”.

Explore the full suite of capabilities of Airwallex Business Accounts, or sign up now.

FAQs

1. When do I need a business bank account?

 If your business is registered as a company, partnership or trust in Australia, you are required to open a business account or business bank account for tax purposes.

Sole traders and freelancers, on the other hand, might opt not to open a business bank account if their business transactions are minimal or closely tied to personal finances. Even so, many of them will find that a business account or business bank account is a valuable way to simplify tax reporting and separate their personal and business finances for better financial clarity.

2. What features to look for with a business bank account

When you’re evaluating Business Accounts or Business Bank Accounts, you might explore whether they have a strong branch network, an online platform or portal, and account limits at a minimum. Following this you might evaluate account fees, international fees and integration capabilities.

3. Are business bank accounts expensive?

Business Bank Accounts come at a variety of costs. If you’re experiencing budget constraints, there’s likely a no or low-cost account from a bank or non-bank provider that could fit your needs. Depending on which account you prefer, there may also be an option to start with a basic no or low-cost account and then add on additional features or benefits as your company’s needs and budgets grow. 

Disclaimer: This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) it is important for you to read the Product Disclosure Statement (PDS) for the Direct Services, which is available here. If you are a customer of Airwallex Capital Pty Ltd (AFSL No. 549026), read the Yield PDS here. Any information included about competitor products has been drawn from their publicly available websites, is subject to change, and has not been independently verified by Airwallex.