Business Bank Accounts in Australia (2026): Requirements, Fees and Merchant Options

A business bank account is usually the first thing you set up after your ABN, and the one you'll use every day. It's also where many new owners waste money — on monthly fees they don't need, on a merchant facility priced for someone else's business, or on hours untangling personal and business spending at tax time. This guide is for Australian sole traders, partnerships, companies and trusts opening their first business account in 2026. It covers when the law requires a separate account, what the bank will ask for, published fees as at October 2026, merchant and offset options, and the card surcharging change from 1 October 2026.

Quick answer

Sole traders don't have to open a separate business account, but partnerships, companies and trusts must have one in the entity's name. Most banks need an active ABN (and an ACN for a company), ID for everyone who owns or controls the business, and basic details such as address and industry. Online business transaction accounts at the major banks were advertised from A$0 a month when we checked on 11 October 2026.

• Get your ABN first — it's free through the Business Registration Service

• Companies must give details of every director and every beneficial owner (25%+ or control)

• Branch-assisted transactions cost about A$3 each on no-fee accounts

• Card surcharges on eftpos, Mastercard and Visa ended on 1 October 2026

• Deposits are protected to A$250,000 per account holder per bank

Do you legally need a business bank account?

It depends on your business structure. According to business.gov.au, a sole trader doesn't have to have a business bank account. You and the business are the same legal person, so the ATO is interested in whether you can separate business income and expenses in your records, not which account they pass through. If you run everything through one personal account, you must clearly mark which payments and expenses are personal.

A partnership, company or trust is different. Each is a separate taxpayer with its own tax file number, and business.gov.au says these structures must have a separate bank account for tax purposes. For a company the account has to be in the company's name, using its ACN — not a director's personal account with the company name as a nickname. Paying company income into a director's personal account mixes the company's money with yours, which can create problems with Division 7A loans, director penalty exposure and an audit trail the ATO won't accept.

Even for sole traders, a separate account is worth it. You'll be able to hand your bookkeeper or accountant a clean statement, reconcile your BAS in minutes rather than hours, and show a lender twelve months of business turnover when you apply for finance. Most business accounts also connect to accounting software through a bank feed, which pulls transactions in automatically.

What banks ask for when you open a business account

Banks are reporting entities under Australia's anti-money laundering and counter-terrorism financing (AML/CTF) laws, overseen by AUSTRAC. Before they open an account they must identify the customer — the business — and the people behind it. That's why the paperwork is heavier for a company or trust than for a sole trader.

business.gov.au lists the basics you may need: the business name, the primary business address, the ABN, the industry type and identification for all owners or partners. In practice each bank sets its own list, but it follows the same pattern by structure.

Beneficial owners and the 2026 AML/CTF reforms

AUSTRAC defines a beneficial owner as an individual who directly or indirectly owns 25% or more of the customer, or who controls it. If your company is owned by another company or a family trust, the bank must follow the chain of ownership until it reaches the real people at the top. So a company owned 50/50 by two family trusts may require ID from the trustees' directors and the people who control each trust.

The reformed AML/CTF framework commenced on 31 March 2026. Existing reporting entities such as banks have transitional arrangements for their initial customer checks, but new ongoing due-diligence obligations apply now. In plain terms, expect your bank to ask you to confirm or update ownership and control details from time to time, not only when you open the account. Answer those requests promptly — banks can restrict an account when details can't be verified.

Identity documents

Each person usually proves their identity with two forms of ID — typically a driver licence or passport plus a Medicare card or similar — or by logging in as an existing customer. NAB's published requirements on 11 October 2026, for example, were an active ABN or ACN (unless you're a sole trader without an ABN), at least two forms of ID for new customers, and details of all directors, beneficial owners and trustees for a private company. Many banks verify ID electronically during an online application; others ask non-residents or complex structures to visit a branch.

Have these ready before you apply

0/8

• ABN (and ACN for a company) — check both are active on ABN Lookup
• Registered business name, if you trade under one
• Business and registered office addresses
• Industry or main business activity
• Two forms of ID for each owner, partner, director and beneficial owner
• Trust deed or partnership agreement, if relevant
• Names and roles of the people who will be account signatories
• Expected monthly turnover and how you'll be paid (cash, card, transfer)

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Get your ABN and company registration done first

Most applications stall because the ABN or ACN isn't active yet. An ABN costs free and you apply through the Business Registration Service — see our ABN registration guide. A company receives its ACN when ASIC registers it, which costs A$636 for a proprietary company with share capital; our company registration guide covers that process, including the director ID each director needs first. Banks check company details against the ASIC register, so make sure the registered office and director names there match what you put on the application.

Business bank account fees: what was published in October 2026

The big shift of the past few years is that basic online business transaction accounts at the major banks now advertise no monthly fee. The trade-off is that branch help — cash deposits over the counter, cheques, coin — is charged per transaction. If your business handles a lot of cash, a low monthly fee that includes a bundle of assisted transactions can work out cheaper.

The table shows fees exactly as two major banks published them on their websites when we checked on 11 October 2026. They are examples, not a recommendation, and banks change fees with notice — check the current fee guide before you apply.

Electronic transactions — internet banking transfers, BPAY, the bank's own ATMs and debit card purchases — were free and unlimited on all four accounts. Neither bank issues cheque books on new NAB accounts opened since 3 March 2023, which tells you where the market is going.

A worked example: which plan is cheaper?

Say you run a market stall and bank takings over the counter twice a week — roughly nine assisted deposits a month. On a no-fee account at A$3 each that's A$27 a month, or A$324 a year. On a A$10 plan that includes 15 assisted transactions, you'd pay A$120 a year — a saving of A$204. Now take an online consultant who never visits a branch: the no-fee account costs A$0, and the A$10 plan would waste A$120 a year. Count your likely branch visits honestly before choosing.

Other fees to look for

Monthly fees are only part of the cost. Before you sign, check the fee guide for:

• International payments — outward telegraphic transfers, inward fees and the exchange-rate margin, which often costs more than the fixed fee.
• Overdraft and credit card establishment fees, annual fees and interest.
• Dishonour and overdrawn fees when a direct debit fails.
• Internet banking for business platforms with multi-user approvals, which some banks charge separately from the account.
• Merchant facility fees, covered below.

Comparing accounts: features that matter more than the fee

After cost, the things that make a real difference to small businesses are practical. Check that the account has a reliable bank feed into your accounting software, because manual statement uploads are where reconciliations go wrong. If you'll have staff or a bookkeeper, look for multiple users and approval rules, so one person can set up payments and another approves them. That control is one of the simplest fraud defences a small business has.

Look at PayID and instant payments: customers increasingly pay by bank transfer to a PayID such as your ABN or email, and funds arrive in seconds. Ask whether you can create multiple sub-accounts for GST, tax and savings — many owners move 10% of every GST-inclusive sale and a share of profit into a separate "tax" account so the BAS and income tax bills are already set aside.

Finally, consider who you can talk to. A dedicated business banker matters more as you grow and need a loan, a bank guarantee for a lease, or an overdraft. For a start-up, phone and chat support hours may matter more.

Sole trader vs company: how the account works differently

For a sole trader, the account is in your own name, often with your business name added. The money in it is yours, legally and for tax. Transfers to your personal account are simply drawings — not wages, not deductible, and with no PAYG withholding. You can open it under your existing customer number at most banks, which makes the application quick.

For a company, the account belongs to the company. Money you take out has to be paid as wages (with PAYG withholding and super), directors' fees, dividends, or properly documented loans. Taking cash out "as you need it" without recording what it is can create a deemed dividend under Division 7A. Directors also sign as officers of the company, so the bank will want to know who can operate the account and how many signatures are needed.

A partnership account is held by the partners for the partnership, and most banks want every partner identified. A trust account is opened by the trustee; if the trustee is a company, the bank identifies that company's directors and beneficial owners as well as the trust's key people.

If you're still deciding on structure, the how to start a business in Australia guide compares the options, and our sole trader guide covers setting up in your own name.

Sole trader vs company business account

	Sole trader	Company
Separate account required?	No, but recommended	Yes, in the company's name
Registration needed first	ABN (most banks)	ACN from ASIC, then ABN
People identified	You	Every director and beneficial owner
Taking money out	Drawings — not deductible	Wages, fees, dividends or documented loans
Financial Claims Scheme	A$250,000 per person per bank	A$250,000 for the company per bank

Separate account required?

Sole trader

No, but recommended

Company

Yes, in the company's name

Registration needed first

Sole trader

ABN (most banks)

Company

ACN from ASIC, then ABN

People identified

Sole trader

You

Company

Every director and beneficial owner

Taking money out

Sole trader

Drawings — not deductible

Company

Wages, fees, dividends or documented loans

Financial Claims Scheme

Sole trader

A$250,000 per person per bank

Company

A$250,000 for the company per bank

Merchant facilities and the end of card surcharges

If customers pay you by card, you need a merchant facility — a terminal, a mobile card reader or online payment gateway — from your bank or an independent payment provider. You pay a merchant service fee on each transaction, which is made up of the interchange fee set by the card schemes, the scheme fees and the provider's margin. Plans are usually either a flat percentage on every card, or "cost-plus" pricing that passes on the actual cost of each card type.

What changed on 1 October 2026

In March 2026 the Reserve Bank of Australia concluded its review of merchant card payment costs. From 1 October 2026:

• Surcharging is removed on debit, prepaid and credit cards on the eftpos, Mastercard and Visa networks. You can no longer add a card fee at the checkout for those cards.
• The cap on domestic debit and prepaid interchange fell to 8 cents per transaction (0.16% of value), and the cap on domestic consumer credit interchange fell from 0.8% to 0.3%.
• From 1 April 2027 a cap of 1.0% applies to interchange on foreign-issued cards, and large acquirers and the card schemes must publish their fees.

The RBA said small merchants, who tend to pay interchange near the old caps, should gain most. But the caps apply to interchange, not to your provider's whole merchant service fee — so lower costs depend on your provider passing the savings on. If your fees haven't fallen since October, ask for a re-quote and compare.

You can still offer a discount for cash or other payment methods. The rule also doesn't cover American Express or buy now, pay later services; the RBA said BNPL would be considered separately.

Try it — what card fees cost you each month

I chargeI want to receive

AmountPercentage FeeFixed Fee

Amount Charged₹1,000.00

Processing Fee₹29.30

Effective Fee Rate2.93%

You Receive₹970.70

Open the full Payment Processing Fee Calculator (PDF, save, compare)

Choosing a merchant facility

Compare the all-in rate on your real card mix, not the headline rate. A café with mostly small debit taps benefits from cost-plus pricing and from asking the provider to route dual-network debit cards through the cheaper network where possible. A tradie taking a few large credit card payments may prefer a simple flat rate. Also check terminal rental, minimum monthly fees, contract length and exit fees, and how quickly settlements reach your account — next-day settlement into the same bank is common, and some providers settle the same day.

Offset, savings and finance options

Once the business has cash sitting idle, a business savings account or term deposit earns interest on the surplus. Keep in mind that deposits at an Australian bank, building society or credit union are protected under the Financial Claims Scheme up to A$250,000 per account holder per institution. APRA notes that a company, partnership or trust can be an account holder, and that all deposits with one institution — including its other brands — are added together before the limit applies. A business holding more than that may spread money across institutions.

If you have a business loan, an offset account can be better than a savings account. The balance is offset against the loan, so you pay less interest instead of earning taxable interest. Not every business loan offers one, and offset arrangements may cost more in fees or a slightly higher rate, so compare the effective saving. Some owners also use an offset against a home loan — but money in a personal offset is personal money, which defeats the purpose of separating business funds and can complicate deductions. Ask your accountant before mixing the two.

For working capital, the usual products are a business overdraft linked to the transaction account, a business credit card, or a line of credit. Expect the bank to ask for financial statements, recent BAS, and often a personal guarantee from directors, even for a company.

Opening a business bank account, step by step

1. 1

   Register your ABN (and company, if relevant)

   Apply free through the Business Registration Service. A company registers with ASIC first to get its ACN.

   ABN registration guide
2. 2

   Decide what you need from the account

   Estimate branch visits, card payments, international payments and number of users.

3. 3

   Compare two or three fee guides

   Check monthly fees, assisted transaction fees and merchant pricing on each bank's current fee schedule.

4. 4

   Gather ID for everyone involved

   Owners, partners, directors and beneficial owners each need to be identified.

5. 5

   Apply online or in a branch

   Many banks open simple accounts online the same day; complex structures may need a branch visit.

   Tip: If your application stalls, check that your ABN and ASIC details match exactly.

6. 6

   Connect your bank feed and set up tax sub-accounts

   Link the account to your accounting software and start setting aside GST and tax from day one.

Common mistakes and how to fix them

Applying before the ABN or ACN is active. The bank can't verify the business. Fix: confirm both on ABN Lookup and the ASIC register before you start.

Running company money through a personal account. It breaks the company's audit trail and can trigger Division 7A problems. Fix: open a company account immediately and record any past transfers properly with your accountant.

Choosing a no-fee account for a cash-heavy business. Per-transaction charges add up quickly. Fix: estimate monthly branch deposits and compare against a bundled plan.

Ignoring merchant statements. Fees on the same card mix vary a lot between providers. Fix: from April 2027 large acquirers must publish their fees; until then, ask for an itemised quote using three months of your statements.

Still surcharging after 1 October 2026. Fix: remove surcharge settings from your terminal and online checkout, update signage, and decide whether to adjust prices or offer a cash discount instead.

Leaving ownership details out of date. After the 2026 AML/CTF reforms, banks review customer details on an ongoing basis. Fix: tell the bank when directors, shareholders or trustees change, at the same time you notify ASIC.

Official links

• business.gov.au — Set up your business bank accountWhen a separate account is required and what you'll need
• Business Registration Service — ABN and business nameFree ABN application
• AUSTRAC — Ownership and control structuresWhy banks ask about beneficial owners
• APRA — Financial Claims SchemeDeposit protection limit and who it covers
• RBA — Card payment costs and surcharging decisionSurcharge removal and interchange caps from 1 October 2026

What to do next

Get your ABN sorted, pick an account that matches how your customers actually pay you, and connect it to your bookkeeping from the first day. If you're taking cards, run your expected monthly sales through our payment fee calculator to compare plans, then read small business bookkeeping to set up the records your bank statements will feed.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Do sole traders need a separate business bank account?

No. business.gov.au says a sole trader doesn't have to have one, though it's recommended. If you use one account for both, you must clearly identify personal payments and expenses in your records. Partnerships, companies and trusts are different: they must have a separate account in the entity's own name for tax purposes.

Can I open a business bank account without an ABN?

Some banks let a sole trader open a business account before getting an ABN, but most ask for an active ABN, and a company needs its ACN. Because an ABN is free and often issued online immediately, the simplest path is to apply through the Business Registration Service first and then open the account.

What documents do I need to open a company bank account?

Expect to provide the company's ACN and ABN, its registered name and address, the full names of every director, and identity details for every beneficial owner — anyone who owns 25% or more or otherwise controls the company. Each person usually verifies their identity with two forms of ID or an existing customer login. Trusts also provide the trust deed.

How much does a business bank account cost in Australia?

Basic online business transaction accounts at the major banks were advertised at A$0 a month when we checked on 11 October 2026, with A$10-a-month versions that include a handful of branch transactions. Staff-assisted deposits, withdrawals and cheques typically cost about A$3 each on the no-fee versions. Merchant facilities, overdrafts and international payments carry separate fees.

Can I still add a surcharge for card payments?

Not on eftpos, Mastercard or Visa cards. The Reserve Bank removed surcharging on debit, prepaid and credit cards from those networks from 1 October 2026. You can build card costs into your prices or offer a discount for cash. American Express and buy now, pay later services are outside the new rule.

Is money in a business bank account protected?

Deposits with an Australian-incorporated bank, building society or credit union are covered by the Financial Claims Scheme up to A$250,000 per account holder per institution. A company, partnership or trust can be the account holder, but all of its deposits with the same institution and its brands are added together before the limit applies.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 11 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Set up your business bank account — business.gov.au · accessed 11 October 2026
2. 2.Determining ownership and control structures — AUSTRAC · accessed 11 October 2026
3. 3.AML/CTF transitional rules 2026 — AUSTRAC · accessed 11 October 2026
4. 4.Overview of the Financial Claims Scheme — APRA · accessed 11 October 2026
5. 5.Review of Merchant Card Payment Costs and Surcharging (Media Release 2026-10) — Reserve Bank of Australia · accessed 11 October 2026
6. 6.At a glance: what the key conclusions are and what they mean for businesses and consumers — Reserve Bank of Australia · accessed 11 October 2026
7. 7.Business Everyday Account — no monthly fee — NAB · accessed 11 October 2026
8. 8.Business transaction accounts — Westpac · accessed 11 October 2026
9. 9.Register for an Australian Business Number — business.gov.au · accessed 11 October 2026