What you need before you walk into a bank
Australian banks will not open a business account without proof that your business exists and that you are who you say you are. This means you need documents in a specific order, and the order matters because some documents depend on others.
Start with your Australian Business Number (ABN). You get this from the Australian Business Register (ABR), which is free and takes about 10 minutes online if you are a sole trader or partnership. If you are a company, you need an Australian Company Number (ACN) from the Australian Securities and Investments Commission (ASIC) first — that takes longer and costs money. Once you have your ABN or ACN, the bank can verify your business actually exists.
Next, bring proof of your identity. A current passport, driver's licence, or proof of age card works. The bank will scan it and keep a copy. If you are opening the account as a sole trader, that is usually all they need from you personally. If you are a company, they will ask for the same from each director and shareholder above a certain threshold — this varies by bank, but typically 25 per cent or more.
You will also need proof of your business address. This can be a lease, a utility bill in the business name, or a council rates notice. If you are running the business from home, a recent utility bill or council notice at your home address usually works. Some banks accept a statutory declaration if you do not have a formal lease yet.
Key Takeaways
- You must have an ABN (for sole traders and partnerships) or ACN (for companies) before the bank will open your account, and you can get an ABN free from the Australian Business Register in about 10 minutes.
- Bring a current passport or driver's licence, proof of your business address, and your tax file number — the bank will photocopy these and keep them on file.
- Different banks have different rules about minimum deposits, monthly fees, and what counts as a business account, so comparing three banks before you commit saves money over time.
- The whole process usually takes one to two weeks from your first visit to the bank to your account being ready to use.
- If your business structure changes later (sole trader to company, for example), you will need to close the old account and open a new one because the ABN or ACN changes.
Which banks offer business accounts and what they cost
The major banks — Commonwealth Bank, Westpac, ANZ, and NAB — all offer business accounts, as do most regional banks and some online-only banks. The differences are in monthly fees, transaction limits, and what services come included.
Commonwealth Bank and Westpac typically charge between $10 and $20 per month for a basic business account, though some accounts are free if you keep a minimum balance or maintain a certain number of transactions. ANZ and NAB have similar pricing. Regional banks like Bendigo Bank or Bank of Queensland often charge less but may have fewer branches or online features. Online banks like Xinja or Volt offer lower fees but fewer in-person services.
Before you open an account, ask the bank about transaction fees. Some charge per cheque, per electronic transfer, or per card transaction. If your business will process many small transactions, these add up. Also ask whether they offer a business credit card, invoice financing, or other services you might need later — some banks bundle these, others charge separately.
You do not need to open with the bank where you have your personal account. Many business owners use different banks for personal and business money because the fee structures are different and it keeps the accounts separate for tax purposes.
The step-by-step process at the bank
Once you have your documents, call the bank and ask for an appointment with a business banker. Do not just walk in — business accounts take longer than personal accounts, and you want someone who knows the process.
At the appointment, bring your ABN or ACN, your identity document, proof of your business address, and your tax file number. The banker will ask you questions about your business: what you do, how much money you expect to move through the account each month, whether you will need a business credit card or overdraft facility. Answer honestly. Banks use this information to set your account limits and flag any unusual activity later.
The banker will fill in an process form (some banks do this on a computer while you watch, others give you a paper form). You will sign it, they will photocopy your documents, and they will tell you when the account will be ready. This is usually one to two weeks, though some banks can open accounts the same day if everything is in order.
You will receive your account number, BSB number, and online banking login details by post or email. Do not transfer money into the account until you have received these and tested your login. Once you can log in, the account is live.
What happens if your business structure changes
If you start as a sole trader and later register as a company, your ABN changes to an ACN. The bank cannot straightforward convert your account — you have to close the old one and open a new one under the new business number.
This is important because it affects your tax records and your payment history. Before you make the change, talk to your accountant about the timing. You want to close the old account after all transactions for the financial year have cleared, and open the new one at the start of the next financial year if possible. This keeps your records clean.
The same applies if you change from a partnership to a company, or if you add or remove a director. The business number changes, so the bank account must change too. Plan for this to take two to three weeks because you have to wait for the old account to close and the new one to open.
Online banking and security for business accounts
All Australian banks offer online banking for business accounts. You will get a username and password, and most also offer a mobile app. Some banks require two-factor authentication (a code sent to your phone) before you can log in or make a transfer.
Business accounts often have higher security requirements than personal accounts because they move larger amounts of money. Some banks require you to set up dual approval for transfers above a certain amount — meaning two people have to authorise the payment. This is optional at most banks but worth considering if more than one person will use the account.
Keep your login details find. Do not share your password, and do not use the same password as your personal bank account. If someone gains access to your business account, they can transfer your money out, and recovery can take weeks. The bank's fraud team will investigate, but you may not get the money back if the transfer went to another bank.
Keeping your account open and compliant
Once your account is open, the bank will monitor it for unusual activity. If you suddenly receive a large deposit or make a transfer to a new country, the bank may freeze the account temporarily while they check. This is normal and usually resolves within one business day.
You must keep your business details up to date with the bank. If you change your address, phone number, or the people authorised to use the account, tell the bank in writing. If you do not, they may refuse to process large transactions or close the account.
The bank will also ask you to confirm your details every year or two. They send a letter asking you to verify that your business address, directors, and account signatories are still correct. Reply promptly. If you do not, the bank may close the account for compliance reasons.
If your business becomes inactive or you stop using the account, tell the bank. Dormant accounts sometimes attract fees or are closed automatically after a period of inactivity. It is cleaner to close it yourself than to have the bank do it.
Frequently Asked Questions
Do I need an ABN before I open a business bank account?
Yes. The bank will not open an account without an ABN (for sole traders and partnerships) or ACN (for companies). You can get an ABN free from the Australian Business Register in about 10 minutes if you are a sole trader. Companies take longer because you have to register with ASIC first.
Can I open a business account online without visiting a branch?
Some banks offer online applications for business accounts, but most still require you to visit a branch or have a video call with a banker to verify your identity and sign documents. Check with your chosen bank about their process before you start.
What if I do not have a business address yet?
You can use your home address as your business address. Bring a recent utility bill or council rates notice in your name. Some banks also accept a statutory declaration if you are about to move or do not have a formal lease yet.
How long does it take from process to using the account?
Usually one to two weeks. Some banks can open accounts faster if all your documents are in order and you meet their requirements. A few offer same-day opening, but this is rare. Ask the banker for a specific date when you explore.
What if the bank rejects my process?
Banks sometimes reject applications if your business structure is unclear, your identity cannot be verified, or your business appears to be high-risk. Ask the bank why they rejected you. If it is a documentation issue, you can reapply with the correct documents. If it is a policy issue, try a different bank.