Updated April 2026 13 min read

Sending Money Overseas from Australia: Cheapest Ways Compared (2025-26)

Whether you're supporting family back home, paying for property overseas, or transferring savings to your home country, sending money internationally from Australia can cost you hundreds in hidden fees if you use the wrong service. This guide compares every major option — from Wise to Western Union — so you can find the cheapest, fastest way to send your money.

Why Your Bank Is the Worst Option

Most new arrivals default to sending money through their Australian bank (CommBank, NAB, ANZ, Westpac). This is understandable — it feels safe and familiar. But banks are consistently the most expensive way to transfer money overseas. Here's why:

• Exchange rate markup: Banks add a margin of 2-5% on top of the real (mid-market) exchange rate. On a $5,000 transfer, this hidden markup alone can cost you $100-$250
• Transfer fees: Banks charge $15-$30 per international transfer on top of the exchange rate markup
• Intermediary bank fees: International bank transfers (SWIFT) often pass through intermediary banks, each of which may deduct a fee. Your recipient could receive less than expected
• Slow speed: Bank transfers typically take 3-5 business days, sometimes longer

Transfer Services Compared

Here's an overview of the main services available in Australia for sending money overseas:

Wise (formerly TransferWise)

Wise is widely considered the best overall option for most international transfers. They use the real mid-market exchange rate (the same rate you see on Google) and charge a small, transparent fee that varies by currency — typically 0.4-1.5% of the transfer amount. Transfers to major currencies usually arrive in 1-2 business days. Wise also offers a multi-currency debit card and Australian bank account.

OFX

OFX is an Australian-based service that excels at larger transfers. They charge zero fixed fees and offer competitive exchange rates, especially for transfers over $10,000. OFX is regulated by ASIC and has been operating since 1998. They also offer forward contracts (locking in an exchange rate for future transfers) and regular payment plans, making them ideal for recurring transfers like mortgage payments.

Remitly

Remitly specialises in remittances to developing countries — particularly the Philippines, India, Vietnam, Pakistan and Latin America. They offer multiple delivery options including bank deposit, mobile wallet (GCash, PayMaya), and cash pickup. Their "Express" option can deliver money in minutes. Fees and rates vary by destination but are generally competitive for the countries they specialise in.

Western Union

Western Union has the widest global network with agent locations in over 200 countries. They offer cash pickup, bank deposit, and mobile wallet delivery. Their main advantage is speed (cash pickup can be available within minutes) and reach (they can send to countries and locations where other services can't). However, their fees and exchange rate markups are generally higher than Wise or OFX.

WorldRemit

WorldRemit is an online-only service similar to Remitly, focusing on transfers to developing countries. They offer bank deposits, mobile money, airtime top-ups and cash pickup. Competitive for smaller transfers to Africa and South/Southeast Asia.

Your Bank (SWIFT Transfer)

As discussed, bank transfers are the most expensive option but may be necessary for very large transfers or transfers to certain countries. If you must use a bank, NAB and ANZ generally offer slightly better international rates than CommBank and Westpac.

Fees and Exchange Rate Comparison

This table compares the approximate cost of sending AUD $1,000 and AUD $5,000 to common destinations (costs as of early 2026 — always check current rates before transferring):

Speed Comparison

How Much Can You Save vs Your Bank?

The savings from using a specialist transfer service instead of your bank are substantial, especially if you send money regularly. Here are some real-world examples:

As the table shows, regular senders can save over $1,000 per year simply by switching from their bank to a service like Wise or OFX. If you're sending money home every month, this is one of the easiest ways to keep more of your money.

Step-by-Step: How to Send Money with Wise

Here's how to set up your first transfer using Wise (the process is similar for other services):

1. Create an account — Sign up at wise.com or download the Wise app. You'll need your email address and to create a password
2. Verify your identity — Upload a photo of your passport or driver's licence and take a selfie. Verification usually takes a few hours to one day
3. Set up your transfer — Enter how much you want to send, select the currency, and choose how you want to pay (bank transfer, debit card or PayID). Wise shows you the exact fee and exchange rate upfront
4. Add your recipient — Enter your recipient's bank details (account number, SWIFT/BIC code, name). For some countries you can send to a mobile wallet instead
5. Pay for the transfer — The cheapest payment method is usually bank transfer or PayID. Debit/credit cards are faster but cost slightly more
6. Track your transfer — Wise shows you real-time tracking of where your money is in the transfer process
7. Recipient receives the money — Typically 1-2 business days for major currencies

Tax Implications

One of the most common concerns for migrants sending money overseas is whether they need to pay tax on the transfer. Here's the short answer:

However, there are some important nuances:

• Business payments: If you're sending money as payment for goods or services (e.g., paying an overseas contractor), normal tax rules apply and the payment may need to be reported
• Foreign income: If you're an Australian tax resident, you must declare worldwide income — including income earned overseas that you transfer to Australia
• Large transfers: Transfers of AUD $10,000+ are automatically reported to AUSTRAC (Australian Transaction Reports and Analysis Centre) for anti-money laundering purposes. This is routine and does NOT mean you owe tax or have done anything wrong
• Foreign exchange gains: If you hold foreign currency and the exchange rate moves in your favour before you convert it back to AUD, you may technically owe capital gains tax on the difference. In practice, this only applies to amounts over AUD $250,000

For more on managing your money and tax in Australia, see our Bank Comparison tool and Best Bank Accounts guide.

Limits and Reporting Requirements

There is no legal limit on how much money you can send out of Australia. However:

• AUSTRAC reporting: Any transfer of AUD $10,000 or more (or foreign currency equivalent) is automatically reported by the transfer service to AUSTRAC. This is a legal requirement for the service provider, not for you. It does not prevent your transfer or trigger any tax obligation
• Service limits: Individual services have their own transfer limits:
  • Wise: Up to AUD $1.5 million per transfer
  • OFX: No upper limit for verified accounts
  • Remitly: Varies by country, typically $10,000-$30,000 per transfer
  • Western Union: Varies, typically up to $50,000 online
• Carrying cash: If you physically carry AUD $10,000+ (or equivalent) into or out of Australia, you MUST declare it to customs. Failure to declare can result in seizure of the money and penalties

Tips for Getting the Best Exchange Rates

1. Compare at least 2-3 services — Exchange rates and fees change constantly. What's cheapest for one currency or amount may not be cheapest for another. Use comparison sites or check each service directly
2. Send larger amounts less frequently — Many services have fixed per-transfer fees, so sending $2,000 once costs less in fees than sending $500 four times
3. Pay by bank transfer, not card — Most services charge extra (1-2%) for debit/credit card payments. Paying by bank transfer or PayID is usually cheaper
4. Set up rate alerts — Wise and OFX let you set target exchange rates and will notify you when the rate hits your target. This is useful if your transfer isn't urgent
5. Consider forward contracts — If you need to send large amounts over several months (e.g., paying an overseas mortgage), OFX offers forward contracts that lock in today's exchange rate for future transfers
6. Avoid weekends and public holidays — Currency markets are closed on weekends, so transfers initiated on Friday or Saturday may not process until Monday, sometimes at a different rate
7. Use the mid-market rate as your benchmark — Check Google or XE.com for the current mid-market rate. Any rate you're offered should be very close to this. If it's more than 0.5% different, you're paying too much

Frequently Asked Questions

What is the cheapest way to send money overseas from Australia?

For most transfers, Wise (formerly TransferWise) offers the cheapest combination of fees and exchange rates. Wise uses the mid-market exchange rate and charges a small transparent fee — typically 0.4-1.5% depending on the currency. For larger transfers over $10,000, OFX may be cheaper as they negotiate better rates with no fixed fees.

Do I have to pay tax when sending money overseas from Australia?

Personal remittances (sending your own money to family or to your own overseas account) are NOT taxable in Australia. You do not need to report personal transfers to the ATO. Transfers over AUD $10,000 may be reported to AUSTRAC automatically, but this is routine and does not mean you owe tax.

How long does an international money transfer take?

Wise typically takes 1-2 business days. OFX takes 1-3 business days. Remitly offers instant transfers to some countries via mobile wallet. Western Union cash pickups can be available within minutes. Bank transfers usually take 3-5 business days.

Is Wise (TransferWise) safe to use from Australia?

Yes. Wise is regulated by ASIC and holds an Australian Financial Services Licence. It is also regulated in the UK, US, EU and many other countries. Wise has over 16 million customers worldwide and your money is protected with safeguarding measures.

How much money can I send overseas from Australia?

There is no legal limit on how much money you can send overseas from Australia. Individual services have their own limits — Wise allows up to AUD $1.5 million per transfer, while OFX has no upper limit for verified accounts. Transfers of AUD $10,000+ are automatically reported to AUSTRAC but this is routine.

What is the mid-market exchange rate?

The mid-market rate is the midpoint between the buy and sell prices of two currencies on the global market — it's the rate you see on Google or XE.com. Banks mark up this rate by 1-5%, which is a hidden fee. Services like Wise use the actual mid-market rate and charge a separate transparent fee instead.