How to Choose a Business Bank Account in Australia 2025

Running a business in Australia? Opening a business bank account is a practical first step you’ll need to take to manage your finances effectively. But with so many options and requirements (eligibility, account types, etc.), it’s not always easy to know where to start.

In this guide, we’ll explain the different types of business accounts and what’s required to set one up. We’ll also compare a few top business bank account options and alternatives in Australia to help you choose the right account type for your business.

Table of contents
What is a business bank account used for? Types Benefits Types of businesses that require an account Setting up a business bank account in Australia Requirements Process Business bank accounts and alternatives in Australia Find the right solution for your business! FAQs

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What is a business bank account used for?

A business bank account is a financial account opened in the name of a business rather than a single person. These accounts are designed for the unique needs of everyday business and have advanced features and tools to make light work of tasks like completing large volumes of transactions and tax reporting.

They can serve multiple purposes at any one moment. Typically, during day-to-day operations, you’ll rely on your business bank account to:

• Accept customer payments through direct bank transfers and EFTPOS terminals
• Pay suppliers and clients for your goods and services
• Manage regular income and expenses like utilities and insurance
• Facilitate international transactions when dealing with people overseas
• Handle employee payroll, including salaries and superannuation
• Manage tax obligations and support record-keeping
• Access business credit facilities like overdrafts and loans
• Store emergency funds for big expenses and seasonal fluctuations

Bank accounts are also used to establish credibility. Clients and lenders look more favourably on those with a separate bank account. It makes it easier for you to apply for funding or negotiate with suppliers, and is the clearest signal that your business is legitimate and financially responsible.

Types of business bank accounts

Business bank account types vary by purpose. The most common, and the one you’ll probably see the most when researching, is a transaction account. Like the name suggests, this is geared towards all your business transactions. But it’s not the only option. Let’s look at several types:

• Business transaction account - The standard option for daily business use. It allows deposits, withdrawals, and bill payments, and usually comes with a business debit card.
• Business savings account - This is for earning interest on surplus funds and cash reserves. It’s often used alongside a day-to-day transaction account.
• Merchant account - A special account for processing electronic payments. It acts as an intermediary, holding funds temporarily before they are deposited elsewhere.
• Multi-currency account - This allows businesses to hold and transact in multiple currencies, making cross-currency transactions cost-effective and .

Benefits of a business bank account

Creating a business bank account is a legal requirement for most business types. Only sole traders have the option of managing funds with a personal account in Australia. But it’s strongly recommended that all businesses set one up — the government even says it’s “a good idea”¹.

Why? Because having a dedicated business bank account makes it much easier to manage your finances, especially when scaling your operations.

Some of the benefits of having a dedicated business account include:

• Simpler financial tracking with a complete overview of income and expenses to manage cash flow.
• Accounting software integration to categorise transactions and improve bookkeeping.
• Tax benefits with clearer records make it easier to claim legitimate deductions.
• Dedicated support for businesses. Often tailored financial advice, merchant services, and lending options as part of the support ecosystem.
• Professional credibility when dealing with larger clients or government contracts.

Types of businesses that require a business bank account

Most business types are required to open a dedicated account. Let’s look at the most common structures in Australia.

Sole trader

A sole trader is an individual who owns and operates a business and is personally responsible for all aspects of it. It’s the simplest structure, and a separate business bank account isn’t legally required. But the government recommends it. Creating a clear delineation between personal and business finances is, in essence, ‘good business’.

Partnership

Partnerships involve two or more people or entities working together without forming a company and who agree to share their profits and losses. Each partner may also be personally liable for debts.

Company

A company is a legal entity separate from its owners. Unlike sole traders and partnerships, company owners have limited liability — they’re not personally responsible for covering a company's debts.

Trust

A trust is a legal structure where a trustee manages assets on behalf of beneficiaries. While they aren’t commercial operations in the traditional sense, they can be used to run a business or hold assets like investments or property. Charities often operate as trusts.

Partnerships, companies, and trusts all must open a business bank account for tax purposes¹.

👆Looking to start a business in Australia? Check out our guide where we cover requirements, costs, and best practices!

Setting up a business bank account in Australia

Creating a bank account is a key step towards running finances legally and professionally. The specific procedures do vary, but most banks offer streamlined applications and approvals in 2025.

What’s required?

Australian business bank accounts are only for businesses registered in Australia. The eligibility criteria for most banks require you to be living in Australia as a permanent resident for tax purposes. NAB, for example, states this explicitly for its Business Everyday Account².

However, the most important thing is that you are an Australian business owner. Non-residents can still apply for some accounts, but the process is more complex.

You’ll also need to submit multiple documents during the application process to verify your identity and ownership. The exact documents will differ depending on the bank and account type. But expect to show proof of your:

• Business name
• Primary business address
• Australian Business Number (ABN) or Australian Company Number (ACN)
• Business tax details
• Personal ID and details for all owners and directors

Process for opening a business bank account in Australia

Opening an account shouldn’t take long if you meet the eligibility criteria and have the right documents. Here’s a quick step-by-step process:

1. Research banks and choose the best one for your business.
2. Review the eligibility criteria and start gathering the documents.
3. Apply for an account and submit your documents, either online or in-branch, depending on the options presented by the bank.
4. Complete the verification process if the bank requests additional details or an in-branch visit.
5. Activate your account and start business banking.

Business bank accounts and alternatives in Australia

Business owners are spoilt for choice with bank accounts in 2025. The industry is very competitive, with most banks now waiving monthly fees on standard accounts and packing in lots of extra features and offers. However, it doesn't always mean an account can be the most suitable option for your business.

We’ll now look at some of existing business bank accounts in Australia.

Wise Business - Alternative

The Wise Business account is a $0 monthly fee online account designed for local and international transactions. It comes with all the perks of a premium business account — large transaction volumes, invoicing software integration, multiple debit cards — but with the flexibility of spending and holding 40+ currencies in one account.

You’ll also be able to make and receive payments overseas with no hidden charges and currency conversion happens with no markup on the mid-market exchange rate with no markups. There are lots of handy tools for managing business finances, too, including batch payments, invoicing templates, and team access/permissions.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

CommBank - Business Transaction Account

CommBank is the largest bank in Australia. The Business Transaction Account³ comes with a $0 monthly fee if you mostly transact online. Each staff-assisted transaction costs $3 but you do get free electronic transactions and free withdrawals at CommBank ATMs across Australia.

For a $10 monthly fee, you get five assisted transactions, cheques and QuickDeposits. Both account types include a Business Visa Debit and the option to apply for a Smart Mini EFTPOS reader to take payments. There are also several ‘partner offers’ for mobile plans and work software.

Westpac - Business One and Business Plus

Westpac⁴ promises to “simplify your cashflow” with two accounts: $0 monthly fee Business One and $10 monthly fee Business One Plus. Like CommBank, the tiers are mostly tied to staff-assisted transactions. With Westpac business account, you get a few more — 25 free every month with the paid tier and in-branch support.

Both Westpac account types are almost identical outside of that. There’s a debit card and the option to download the EFTPOS Air app to take secure payments with a mobile device. The partner offers include discounts on legal services and energy plans.

NAB - Business Everyday Account

NAB’s Business Everyday Account⁵ also has two types with a $0 monthly fee and $10 monthly fee. The higher tier is pitched at those completing a “large number of cash and cheque transactions.” You get 15 free ‘eligible’ transactions per month. The free tier covers the basics including free electronic and ATM transactions.

Both accounts include a NAB Business Visa Debit Card and a 6-month trial for NAB Bookkeeper, the bank’s AI-powered accounting platform. There’s partner discounts here too, with Qantas Business Rewards and Australian Business Flyer among them.

ANZ - Business Essentials and Business Extra

ANZ’s Business Essentials⁶ is marketed as a “simple” account that separates business and personal finances. For a $0 monthly fee, you can complete as many ANZ ATM and electronic transactions as you want per month. The bank is also slightly cheaper than its rivals for staff-assisted transactions, which cost $2.50.

You get 20 of these included for $10 a month with Business Extra. The higher tier also has an optional linked overdraft if you need an additional safety net. Both the NAB business accounts include the ANZ Business Debit card at no extra cost and ANZ Worldline Payment Solutions to take payments with a terminal or smartphone.

👆For a detailed breakdown on fees, features, and comparison of different Australian business account, click here!

Find the right solution for your business!

Setting up a bank account is almost a rite of passage for business owners. It’s an essential first step for clearer finances. It can also be a prelude to greater things — the confidence to grow and scale with the right tools at your disposal.

In 2025, there are numerous banks and account types that can separate your personal funds and support your business objectives. The key is matching your business type and requirements to the right account features, considering factors like fees, international payments, and more. It’s then a case of gathering documents and submitting an application online.

Sign up for the Wise Business account! 🚀

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FAQs on business bank accounts in Australia

1. Can you open a corporate bank account in Australia with a foreign corporate entity?
It’s possible for a foreign corporate entity to open a business bank account in Australia. However, it must first have an official presence in the country. This typically involves getting an ABN and registering with ASIC⁷. Only after this can a company apply for a business bank account, but prepare for a complex process. NAB, among others, has a lengthy document checklist for foreign companies⁸.

2. Can you open a business bank account in Australia from abroad?
Yes, you can start your application online while overseas. But your business must be properly registered and active in Australia. It’s best to contact your chosen bank directly to find out the requirements for overseas applicants. CommBank, for example, states it’s mandatory to visit a branch with ID to see a ‘small business specialist’ first⁹. Whereas alternative solutions like Wise Business allows existing users to create accounts in different currencies without any additional registration or account set up steps.

3. Can you open a business bank account in Australia as a non-resident?
Yes, some banks will allow you to open a business bank account as a non-resident. However, the business must be registered in Australia with a primary business address in the country. Check the bank’s eligibility criteria for full details. NAB, among others, states that applicants must be living in Australia as residents to apply². Non-residents may also need to provide more information and documents.

4. How long does it usually take to get the business account up and running?
It’ll depend on the bank in question: they all have their own systems. Bear in mind that they may need to check your details, review your application and so on – it’s not as simple as opening a personal bank account. So you’d be wise to allow plenty of time. For most Australian banks, a specialist will accompany/guide you through this process and keep you updated.

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Sources:

1. Business Gov Au - Set up
2. NAB - No monthly fee business account
3. CommBank - Business transaction account
4. Westpac - Business transaction accounts
5. NAB - Business transaction accounts
6. ANZ - Business transaction accounts
7. ASIC - register a foreign company in Australia
8. NAB - Foreign company document checklist
9. CommBank - Documents