How to receive money from overseas in Australia: A complete guide

Receiving money from overseas is a part of life for many Aussies — whether you're an expat, a business owner, or simply getting payments from friends or family abroad. The process can seem straightforward, but there are a few key things you should know to make sure you get the most out of the transfer, avoid unnecessary fees, and understand the tax implications. 

Here’s a guide to help you navigate international money transfers (IMTs) when receiving funds in Australia.

There are several ways to receive money from overseas, each with its own pros and cons depending on your needs, the amount of money being sent, and how quickly you need it. Here are some of the most common methods:

1. International money transfer specialists: Securing better rates

Specialised services like XE, OFX, and TorFX offer a great alternative to traditional banks. These IMT providers often offer faster, cheaper services, particularly for larger sums of money.

With an IMT specialist, you can often expect transfers to arrive in 1 to 3 business days, sometimes even sooner. They tend to provide better exchange rates and lower fees than banks, which can make a huge difference on larger transfers. If you’re expecting regular payments from overseas, consider setting up an account with an IMT provider to save on transfer costs in the long run.

2. PayPal: Quick and easy for smaller transfers

PayPal is one of the most popular ways to send and receive money globally. It’s quick, convenient, and especially useful for smaller transfers (under $200). If someone is sending you money via PayPal, you’ll need to have a PayPal account set up to receive the funds.

One of the main benefits of PayPal is the security it offers, with the platform using advanced encryption to protect your details. However, be aware that PayPal charges a fee, which is typically a percentage of the transaction amount.

3. Bank transfers: Reliable but can be slower and more expensive

Receiving money via a bank transfer is one of the most traditional methods. Your sender can either use their own bank or a specialised money transfer service to send funds directly to your Australian bank account.

Make sure you provide your sender with the correct details: your bank’s name, BSB, account number, and your account name. For international transfers, you'll also need to provide a SWIFT/BIC code, which identifies your bank globally.

While bank transfers are secure, they can take anywhere from 1 to 5 business days to process, depending on both banks’ processing times. Fees can also vary significantly depending on the bank, so it might be worth checking the costs before agreeing to an international bank transfer.

4. Cash pick-up: Convenient but requires planning

In certain cases, your sender might arrange for a cash pick-up, especially if you need the funds in hand quickly. Services like Western Union or MoneyGram allow for cash pick-up from designated locations. Your sender will need to set this up in advance, providing you with a reference number to collect the money.

You’ll need to bring identification that matches the details provided in the transfer. It’s also important to check with the service provider for their pick-up location and hours before heading to collect your funds.

When receiving an international transfer, you’ll need to provide a few key details to your sender to ensure the money reaches your bank account. These typically include:

• Your bank’s name
• BSB (Bank State Branch) number
• Account number
• Account name
• SWIFT/BIC code (for international transfers)

For IMT services, you may need to create an account and link your Australian bank account to the provider’s platform, which makes receiving the transfer even smoother.

The time it takes to receive money can depend on the method used, the banks involved, and even the countries the funds are moving between. Here's a rough idea of how long each option can take:

• Bank transfers: Generally, bank-to-bank transfers can take between 1 and 5 business days. Some delays can occur if there’s no direct relationship between the sending and receiving banks.
• IMT specialists: Services like Wise and OFX typically process transfers within 1 to 3 business days, making them a faster option than traditional banks.
• PayPal and other online services: PayPal and services like Western Union can often complete transfers within a day — or even within minutes in some cases — though they may come with higher fees.

Be sure to check with your service provider for more accurate delivery estimates based on your specific circumstances.

Generally, the taxability of funds received from overseas depends on the nature of the money. For example:

• Gifts or lottery winnings. These are usually not taxable in Australia.
• Income. Whether it’s from a job, business, or investments, income received from overseas is generally taxable in Australia.

It’s the source of the money, not the method of transfer, that determines whether it’s subject to tax. If you’re unsure about your specific situation, it’s best to consult the Australian Taxation Office (ATO) or a tax professional to clarify your obligations.

For more detailed information on tax implications for international money transfers, check out Mozo’s tax guide for IMTs.

Ultimately, the best method for receiving money from overseas depends on factors like how fast you need the funds, how much money is being sent, and how much you're willing to pay in fees. If you have any say in the process, consider recommending a service that offers lower fees and better exchange rates, such as an IMT specialist.

If you're looking for an even easier way to compare rates, Mozo’s international money transfer comparison lets you compare offers from multiple providers so you can choose the best one for your needs.