The Australian Dollar
The official currency of Australia is the Australian Dollar $. Here we distinguish between the Australian Dollar AU$ and the US Dollar US$.
The current currency conversion rate is as follows (as of November 17th, 2023).
1 US Dollar = 1.5 Australian Dollars
For up-to-date conversion rates see here
Australian Prices
The average cost of living in Australia is higher than in the United States. This is because overall salaries in Australia are higher and many public services we pay for in the US are covered by taxes in Australia. For example, consider that the minimum wage in Australia is currently ~US$14 (or ~AU$21) compared to the (federal minimum) US$7.25 in the United States.
That said, also keep in mind that the prices you see in Australia ALREADY include all taxes, and in most circumstances you do not need to tip. So when a restaurant burger is listed as AU$21.00 you pay EXACTLY AU$21.00.
So when converting to US dollars keep this in mind. That apparently outrageously overpriced AU$21.00 restaurant burger (assuming you usually tip 20%) actually costs:
(AU$21.00/127.5)*100 = ~$AU16.50 or ~US$11. So the same meal would be listed in the US as costing $11.00 but then you would have to add + 7.5% sales tax and + 20% tip. Considering that the Australian prices are really not as high as they at first seem. Although, the burger in Australia might not include fries, whereas in the US it probably would, Aussie eateries often throw in the side as lunch or dinner specials. So expect higher meal prices BUT do the math!
Cash
To get the best exchange rate, it is generally recommended that you withdraw your cash from a bank-affiliated ATM, preferably a bank affiliated with your OWN bank in the US. Contact your bank before the trip and find out if they are present throughout Australia, or whether they have an affiliate abroad. Find out whether your card can be used in Australia to withdraw cash from an ATM and be sure to get a 4-digit PIN for it.
I do not recommend exchanging money at an airport exchange or before departing (again unless your bank gives you a good deal) because the fees are usually (much) higher than ATM withdrawals.
On weekdays, banks are generally open between 9:30am and 4:00pm. Banks are not open in Australia on weekends, but you will have 24-hour access to ATMs.
Credit Cards
Credit cards are accepted by most vendors and businesses in Australia, VISA and MasterCard being more widely accepted than American Express. Depositing the funds you wish to access onto your credit cards before departing is a good way to avoid cash advance charges and give you easy access to money within Australia. Australians use credit cards with “The Chip”, a technology that has only recently caught on in the US. It is recommended that you get a card from your bank with a chip. Most of the time you will also be able to pay using the “magnetic swipe” on your card but this usually holds up traffic at the checkout. “Swiping” is considered old and outdated in Australia (and most of the rest of the world for that matter). In all cases (swipe or chip) you will be asked to provide a 4-digit PIN to complete the transaction. Also be aware that some businesses have a minimum purchase (between $AU10-20) requirement for credit cards (much more widespread than in the US). If your purchase is below that total they will charge you a small additional fee.
Travellers’ Cheques
You are not serious, right? Next thing, you are going to ask me whether you could barter with wool, clay, wood, wheat, or rock, aren’t you? Or perhaps seashells? Don’t bring Travellers’ Cheques!
